BC Politics with Hubert Beyer

SIHOTA OFF THE HOOK BUT MAY NOT GET BACK INTO CABINET

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VICTORIA – Moe Sihota was not in a conflict of interest when he accepted an offer from his long-time friend Herb Dhaliwal to cosign for a mortgage, and the latter was subsequently appointed to the B.C. Hydro board of directors.

That’s the ruling Conflict of Interest Commissioner Ted Hughes brought down this week. But timing is everything, as the report shows. Had the Conflict of Interest Act not been amended between Dhaliwal’s initial appointment and his reappointment a year later, Sihota would have been on the hook.

Hughes ruled that Sihota wasn’t in an actual conflict of interest when he "participated" in Dhaliwal’s original appointment. Even though Sihota played a role in attracting Dhaliwal as a potential appointment, the order was actually signed by then premier Mike Harcourt.

Hughes further ruled that Sihota was neither in an actual nor an apparent conflict of interest when he participated in Dhaliwal’s reappointment to the Hydro board. Sihota signed that order.

But Hughes adds that if the current definition of apparent conflict of interest had been in force at the time of Dhaliwal’s original appointment, Sihota would have been in trouble.

"I would have had no hesitation in concluding that Sihota’s participation in that appointment constituted an apparent conflict of interest," Hughes says in his report.

Sihota, the original survivor has, therefore, escaped again by the skin of his teeth, although Hughes notes on several occasion that at no time would a reasonably informed person have come to the conclusion that Sihota was at any time in a real or actual conflict of interest.

Hughes interviewed 11 people during the course of his investigation, including Sihota Dhaliwal and Harcourt. And he points out that he carefully weighed the reasons that might have led Dhaliwal to cosign for Sihota’s mortgage.

"There can be no doubt that B.C. Hydro was one of the most, if not the most, important of the Crown corporations and that appointment to the Hydro board of directors would be a matter of significant prestige," Hughes says.

"On the other hand, the long-standing friendship between Dhaliwal and Sihota also provides some explanation as to why Dhaliwal would help Sihota in the way he did.

Hughes concludes that there was no evidence of any quid-pro-quo arrangement, and that Dhaliwal’s co-signature was offered solely as a sign of friendship.

Hughes also says that Harcourt, during his interview, made it clear he wanted broader ethnic and regional representation on all provincial boards and commissions. Dhaliwal, according to Harcourt, was a perfect candidate whose appointment he enthusiastically supported.

The question now is whether Sihota, having been cleared of this particular allegation, will be welcomed back in cabinet. I wouldn’t hold my breath, for a number of reasons.

First off, I’m not so sure Premier Glen Clark felt comfortable with Sihota’s legendary ability to dominate the headlines and steal his thunder. Which he did on more than one occasion.

But more important, there could well be another complaint to Hughes waiting in the wings if Sihota is appointed to a cabinet post. And that one may be tougher to fight than the Dhaliwal issue, which was put before Hughes by Liberal MLA Mike de Jong.

That time bomb involves Sihota’s interference last year with the Motor Carrier Commission during the applications process for a taxi licence. So far, the opposition has only accused Sihota of having been very rude during some phone calls to the commission.

As long as Sihota is on the back bench, the Liberals will probably let it go at that. If Clark brings him back into the cabinet, however, the opposition is bound to retrain its guns on Sihota.

After all, it’s more productive to go after a cabinet minister, especially one with Sihota’s high profile and cocky attitude, than a back bencher.