Gary Grewal told reporters Monday it makes sense for Social Services to pay higher nightly rates than a single $200 damage deposit, arguing it saves the ministry money.

"It’s better to pay $50 or $60 extra, than paying $200 extra," Grewal said. "By this policy, Social Services are paying less money at the end."

The Opposition NDP has accused Grewal’s motel of raising rates for a Social Services recipient when the ministry started to pay her tab.

Motel receipts provided by the NDP show the client paid $132 a night, plus a $200 damage deposit, when she initially checked in.

However, when the Ministry of Social Services decided to foot the bill, the receipts show the government paid $168 a night and then $200 a night a few days later.

Grewal said the rate is higher because some on social assistance damage the rooms.

"Sometimes the damage is $700−$800," he said. "So many things happen."

Grewal says he’s not involved in the day−to−day operations.

He said his wife collects paperwork, deals with the accountant and deposits money into the account.

Managers set the rates and policies, Grewal said.

"In order to control and to run the business, in a business manner, that is the choice that managers have made," he said of charging social assistance recipients more.

The Opposition NDP says Grewal’s explanation doesn’t make sense, as the single damage deposit would have been cheaper than higher nightly rates.

Meara Conway, the NDP social services critic, said the higher nightly rate meant Social Services had to pay an extra $750.

"It begs the question, why not just pay the $200 damage deposit?" Conway said.

"It makes absolutely no sense to me, from a fiscal perspective, why the ministry would not pay a damage deposit if they’re having to spend many times that over."

Grewal said the woman who stayed at his motel has since received her damage deposit back.

The NDP has said her receipts were at one point in California.

Grewal said he did not know why the receipts were out of province.

He said he’s spoken with the conflict of interest commissioner over the accusations. He has previously disclosed he owns the motel.

"I am confident that I have disclosed and provided all the information necessary," he said.

Saskatchewan’s auditor has said it’s to investigate how the province chooses and pays for hotels when people on social assistance need to stay in them.

Auditor Tara Clemett is expected to report on her findings in December 2024.

The ministry spent $172,000 last year for recipients to stay at Grewal’s motel. In total, the province spent $2.25 million on hotel stays.

This report by The Canadian Press was first published Dec. 4, 2023.

The Canadian Press