Conservatives call for ethics review of Sabia’s move to Hydro-Québec

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The Conservative Party is calling for the Ethics Commissioner’s office to review Michael Sabia’s move from deputy minister of finance to CEO of Hydro-Québec, pointing out that the 2023 budget included measures that benefit the provincial utility.

Conservative MP Michael Barrett raised a question of privilege with the Commons Speaker on Monday, adding that the issue is complicated by the fact that the government has yet to permanently fill the position of Ethics Commissioner since Mario Dion retired in February.

An interim commissioner, Martine Richard, stepped down in April after the opposition criticized the fact that she is the sister-in-law of Intergovernmental Affairs Minister Dominic LeBlanc. The office has since told MPs that it cannot launch new investigations while the commissioner position remains vacant.

The March 28 budget announced the federal government’s intention to take a more activist role in electricity policy, which is generally a provincial responsibility.

The budget unveiled a new 15-per-cent refundable electricity credit that will be available to non-taxable entities such as Crown corporations and public utilities, including Hydro-Québec.

Last month, a senior government official told The Globe and Mail that talks between Mr. Sabia and the Quebec government about becoming Hydro-Québec’s chief executive officer began in April after the release of the federal budget.

The Globe did not identify the official because they were not authorized to comment on an announcement that had not yet been made public.

Mr. Sabia’s departure was made official on May 31.

In his comments, Mr. Barrett said there should be an Ethics Commissioner in place who could review the timeline of conversations between Mr. Sabia and the Quebec government.

“In this case, it’s incredibly serious and it deals with a deputy minister of the Crown then taking a position – a lucrative one – with a company like Hydro-Québec, which benefited substantially from the budget that Mr. Sabia presided over as the deputy minister. And once that cash hit the table, he was out the door and into a job at Hydro-Québec,” Mr. Barrett said.

He also said there was some contact between the Quebec government and Mr. Sabia prior to the budget.

On May 23, La Presse reported, citing sources, that Martin Koskinen, Quebec Premier François Legault’s chief of staff, had initially reached out to Mr. Sabia to see if he’d be interested in the Hydro-Québec position.

The report said Mr. Sabia was receptive but pushed off any discussion of the issue until after the federal budget was released.

“He knew what the job was, and lo and behold, the budget contained direct benefits for Hydro-Québec,” Mr. Barrett said. “There are many questions arising from this case that can only be answered by the Ethics Commissioner, and there isn’t one.”

Marie-France Faucher, a spokesperson for the Finance Department, said Mr. Sabia remained in contact with the Ethics Commissioner’s office throughout the process.

“Initial conversations between Mr. Sabia and the government of Quebec began only after the 2023 federal budget,” she said. “After Mr. Sabia was approached by the government of Quebec, he disclosed this to the Ethics Commissioner’s office, and kept the Ethics Commissioner’s office apprised at each subsequent step. Last month, Mr. Sabia also instituted a self-imposed screen, which prohibited him from working on electricity policy – and energy policies more broadly – within the Department of Finance.”

Philippe Archambault, spokesman for Hydro-Québec, declined to comment. “We don’t have any information as the discussions were between Mr. Sabia and the Quebec government, not directly with Hydro-Québec,” he said.

Ewan Sauves, a spokesman for Mr. Legault, said on Monday that Mr. Legault and Quebec Economy Minister Pierre Fitzgibbon approached Mr. Sabia to gauge his interest in leading Hydro-Québec.

“These discussions with Mr. Sabia did not take place, at his request, until after the tabling of the federal budget,” he said in an e-mail, which did not specify when Mr. Sabia was first approached. “We have no indication that Mr. Sabia favoured Hydro-Québec. Further, the measure is aimed at all energy producers. Like us, the federal government supports the energy transition and that’s a good thing.”

At a May 12 committee hearing, two officials from the Ethics Commissioner’s office – which has 51 full-time employees – told MPs that all new investigations are on hold until a new commissioner is appointed.

Stéphane Shank, a spokesperson for the Privy Council Office, said in an e-mail Monday that a new Conflict of Interest and Ethics Commissioner “will be appointed by the Governor in Council in due course.”

With a report from Nicolas Van Praet in Montreal