CHARLOTTETOWN — P.E.I. Premier Rob Lantz says his government has alerted the RCMP about a former cabinet minister who was dumped over allegations of conflict of interest after approving an altered redevelopment plan for a Summerside golf course.
On Saturday, Lantz removed Gilles Arsenault as economic development minister, saying he had shown poor judgment when the developer, P.E.I. Ocean View Resort, asked the minister to change its permit to alter some wetlands in October 2025.
Arsenault was the province’s environment minister at that time.
On Sunday, Lantz announced he was suspending Arsenault from the Tory caucus and asking the province’s conflict of interest commissioner to investigate.
“Elected leaders need not only be free of conflict of interest, they must also be free of the perception of a conflict of interest,” Lantz told a news conference Monday. “Obviously, there’s a perceived conflict, and I felt I had no choice but to take the decisions I’ve taken.”
Arsenault could not be reached for comment Monday.
Citing results from a third-party investigation, Lantz said the document raised questions about a $100,000 donation the developer gave to a non-profit group led by Arsenault’s former campaign manager.
The investigation, conducted by the law firm Stewart McKelvey, said Arsenault insisted he did not ask for the donation. As well, he said it was not made in exchange for his approval of the project.
The report says a contractor hired by the developer said it was his understanding that Arsenault’s approval would only be granted in exchange for the donation.
“Regardless whose version is more accurate, the timing of the donation suggests that it was linked to the approval,” the report says.
Lantz said a deputy minister in the provincial government alerted the RCMP about the report’s findings on March 13. The allegations in the law firm’s report have not been tested in court.
The premier said it was “relatively clear” that Arsenault did not personally benefit from the transaction.
“(But) it’s exceptionally clear that he demonstrated poor judgment,” the premier said Monday.
The report says the province’s wetland conservation policy was not followed. And it says the developer should have submitted an application to amend its plans rather than seek direct intervention from the minister.
On another front, the report says that under certain circumstances, the policy allows for development of wetlands so long as compensation is paid. That money can be donated to a non-profit group to conduct watershed work.
But in this case, the Environment Department’s rules were not followed, according to the report. As a result, the report recommends that the developer should file a new application and the non-profit group should return the donation it received. Lantz indicated the money had already been returned.
The premier has said deputy ministers in the departments of environment and justice contacted his office after the Environment Department ordered the developer to stop work on Feb. 27, citing concerns about the way the project was approved.
The RCMP was not immediately able to provide a comment about the allegations.
Arsenault also served as minister responsible for Acadian and francophone affairs.
A swearing-in ceremony was held Monday to fill the portfolios vacated by Arsenault.
This report by The Canadian Press was first published March 30, 2026.
— By Michael MacDonald in Halifax
The Canadian Press
