The Saskatchewan NDP are raising concerns that Sask. Party MLA Gary Grewal is linked to another hotel/motel renting rooms at an inflated cost to social service clients.
Last year it was revealed some social service clients stayed at Sunrise Motel in Regina for up to 51 per cent more than the normal rate. Grewal owns the motel.
On Tuesday, opposition ethics and democracy critic Meara Conway showcased documents made through a freedom of information request (FOI) that show Grewal is an investor in the Thriftlodge Hotel at 1009 Albert St.
The Thriftlodge Hotel received $163,704 from the Ministry of Social Services in 2022-23.
“These two hotels, financially linked to this Sask. Party MLA, Mr. Grewal, will consistently inflate their rates when taxpayers are picking up the tab,” Conway said.
Conway said the new data means two of the three Regina motels that accept clients on social services are linked to Grewal. The Coachman Motel is the third motel that accepts clients.
“Is this Sask. Party government really hoping people believe that they weren’t aware that their MLA had a financial stake in two of the three hotels they rely on (for services) here in Regina,” Conway said.
Of the three hotels the province utilized in Regina, the ministry paid the most at the Thriftlodge, according to the NDP.
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According to the documents obtained by the NDP, the ministry paid an average of $185 at the Thriftlodge per night and $162 at Sunrise.
Rates online for the hotels show fees of $90 per night and $99 per night respectively, representing a markup of 105 per cent and 63.6 per cent.
“This matters because the two hotels that are massive outliers in terms of charging the Ministry of Social Services inflated rates appear to be the Thriftlodge and Sunrise Motel,” Conway went on to say.
The news comes after social services minister Gene Makowsky was asked last week if the Sunrise Motel was the only hotel linked to Grewal or other government MLAs.
“Only one I’m aware of,” Makowsky said.
Last week, the ministry announced changes to its hotel procurement policy, which will mandate staff to find cost quotes from at least three hotels before securing a room.
The ministry will also bring in a one-year pilot program where a block of five rooms from a hotel in Saskatoon and Regina will be procured at a set rate, including a damage deposit.
Now, a few days later, Conway is questioning the honesty of Makowsky and his comments.
“This Sask. Party government has not been transparent with the people of Saskatchewan, and it appears has tried to mislead people over the Sunrise scandal,” Conway said.
On Tuesday afternoon, Makowsky responded to the documents obtained by the NDP.
He said the ministry uses hotels to provide immediate help for individuals and families in emergency situations, and for longer-term support for families and children in crisis.
“Unfortunately, there are hotels that will not accept income assistance clients due to past interactions and challenges, including disruption and damage,” Makowsky said.
“The number of hotels willing to work with the ministry to provide rooms for income assistance clients in Regina has decreased since 2021. Payments to each hotel continuing to work with the ministry have increased as a result.”
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