Documents the Saskatchewan NDP received from the Ministry of Social Services show the Thriftlodge motel in Regina, in which Sask. Party MLA Gary Grewal is an investor, is one of the three top used motels and hotels by the ministry for emergency stays. The documents say the motel appears to inflate its rates. (Lisa Schick/980 CJME)

By Lisa Schick/CKOM News Staff

Sask. Party MLA connected to second motel used by Social Services

Feb 13, 2024 | 4:48 PM

After news broke in the fall about a motel owned by Saskatchewan Party MLA Gary Grewal that was getting business from the Ministry of Social Services and inflating prices for it, the Saskatchewan NDP says Grewal is connected to a second motel doing the same thing.

“The Sask. Party government has not been transparent with the people of Saskatchewan and, it appears, has tried to mislead people over the Sunrise scandal,” Meara Conway, the NDP’s social services and housing critic, said Tuesday.

Grewal is an investor in the Thriftlodge motel in Regina, according to his conflict of interest disclosure documents. But Conway said documents newly received from the Ministry of Social Services show that motel is among the top three used by the ministry for emergency stays for clients – often used when a person has nowhere else to go.

Not only is this motel connected to Grewal and is getting business from the government, but it appears to be inflating its rates in the same way the Sunrise Motel, owned by Grewal, had been when the news broke in the fall.

“No other motel or hotel is inflating their rates by this amount; in some cases (others are) often giving the Ministry of Social Services a deal. Only the ones financially associated with MLA Gary Grewal are charging this kind of inflated rate,” said Conway.

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The documents show the average rate the ministry paid per night for the Thriftlodge Motel was $185, while the price online could be found at $90 a night on Tuesday. For the Sunrise Motel the average price the ministry paid was $162 while the online price was $99 a night.

The three most used motels and hotels in Saskatoon appear to charge the ministry at or below their market rate for rooms for clients.

Usage of the Sunrise Motel has also increased substantially since the 2018-19 fiscal year, when the government paid it $282 for service, to $220,474 in 2022-23. Last year, the Sunrise Motel was paid $172,000 by government.

Grewal was elected in the Regina Northeast in 2020.

In its emailed statement, the government said there are fewer and fewer hotels taking Social Services clients in the past few years, so those that will are being used more. It also pointed to the measures announced on Friday to try to get better rates for the ministry on rooms.

The statement sent in response to the request for the minister didn’t mention or address any of the questions raised about Grewal. 980 CJME has requested more information.

Conway is also concerned about the provincial government and Social Services Minister Gene Makowsky’s presentation of this information.

On Friday, when Makowsky was asked if there are any Sask. Party government members or family who have stakes in another of the other hotels government uses, Makowsky replied that he wasn’t aware of any others.

Conway said it would be surprising to her if someone hadn’t brought this second motel to Makowsky’s attention at some point.

“Either he was misleading the public or he doesn’t know his file. I mean, these are the three hotels used in Regina,” said Conway.

“Is this Sask. Party government really hoping people believe that they weren’t aware that their MLA had a financial stake in two out of the three hotels that they rely on here in Regina?”

The minister’s office didn’t respond to these accusations by time of publication.

Conway pointed out she’s also her party’s critic for ethics and democracy.

“This is very concerning from an accountability, transparency perspective,” she said. “It looks bad and it, possibly, is bad,”

On a larger scale, she and the NDP say they want the provincial government to fix its housing policies, which Conway said are increasing homelessness in the province and increasing the reliance on emergency stays in hotel rooms. Conway said it appears Grewal is profiting off the situation that’s been created.

980 CJME has reached out for comment from Grewal, but hadn’t heard back by the time of publication.