Province sells off former SLGA liquor stores

The province’s conflict of interest watchdog has taken no issue with a deal involving the sale of two government-owned buildings, formerly used as liquor stores, to a company using a lawyer with Saskatchewan Party ties.

Pich & Pich Holdings Inc. was recently approved by the provincial cabinet to purchase a building in Rosetown (for $379,600) and in Wynyard (for $179,600) from the Saskatchewan Liquor and Gaming Authority (SLGA).

Adam Pich, one of the company directors, confirmed they are using James D. Turner as their lawyer as they open up liquor stores in the province.

According to Elections Saskatchewan, Turner served as business manager for Jim Reiter, the MLA for Rosetown-Elrose. He also donated $500 to Reiter’s campaign.

Pich said he did not know about Turner’s connection to Reiter.

Reiter also serves as the province’s health minister, and as a result, he was at the cabinet meeting approving the sale of the SLGA building to Pich & Pich.

In a statement, Reiter said: “There was clearly not a conflict of interest under the (Members’ Conflict of Interest) Act or in any other reasonable interpretation of conflict of interest. I have confirmed this with the Conflict of Interest Commissioner. I was not aware that Mr. Turner was acting as legal counsel for the company that purchased these buildings — nor would there have been a conflict had I known. I only became aware of this following the inquiries by the Leader-Post. During my time in the legislature, as an MLA and a cabinet minister, I have conducted myself in accordance with the highest ethical standards. I’m disappointed the LeaderPost would suggest otherwise.”

A written decision from Ron Barclay, the province’s conflict of interest commissioner, confirms he found no conflict of interest.

In his letter to Reiter, made available to the Leader-Post by the province, Barclay says, “Here there is no conflict as you have never made a decision that you knew that in making the decision there would be an opportunity to further your private interest.”

He also notes that Reiter “never made the acquaintance of Mr. Pich or any other officers that may be associated with the company” and that it would be “unethical for the lawyer to ever advise that he was acting for a particular client.”

The letter from Barclay also says the process of privatizing was managed by KPMG, and so cabinet’s approval to sell the building “was only a formality.”

Asked if he saw any potential conflict of interest in having a relationship with Reiter and also representing Pich & Pich, Turner said not really, and that he had no involvement in any negotiations. “Basically, we did company work for (Pich) setting up a company,” he said.

“I don’t see that there’s any issue with that. Mr. Reiter has never discussed any of that type of business with me as part of my job as business manager during an election campaign; the house isn’t even sitting,” he said. “We’re the only law office in Rosetown. I get a call out of the blue, and somebody wants me to do some work.”

Pich likewise said he does not think there is a conflict of interest, and that the company had to incorporate itself in the province.

“(Turner) did our paperwork for that, and then he’s doing the paperwork for the purchase of the building and stuff. And then, as far as we’re concerned, then our relationship is over,” said Pich, who is based in the Northwest Territories but has family connections to Saskatchewan, particularly in Unity.

Duff Conacher, co-founder of Democracy Watch, sees things differently.

“(Reiter) should have recused himself,” he said, contending that because Turner is an associate of Reiter, the MLA shouldn’t have been involved in the meeting approving the buildings’ sales.

Conacher believes there are loopholes in conflict of interest laws generally that need closing.

In total, the province is privatizing 40 government owned liquor stores.