P.E.I. Watershed Alliance distances itself from group named in Gilles Arsenault controversy | CBC News
Listen to this article
Estimated 4 minutes
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
The P.E.I. Watershed Alliance says it’s had no conversations with a community group at the heart of a scandal involving a golf course developer and a member of the provincial legislature.
The non-profit co-operative said in a news release Thursday that the Comité Diversité et Equité is not a member of the alliance, and none of its members have had conversations with the committee about projects related to watersheds or education.
Dale McIsaac, chair of the watershed alliance’s board of directors, said the phone has been “ringing off the hook” at the office since news broke of an alleged $100,000 donation to Comité Diversité et Equité by the private developer behind P.E.I. Ocean View Resort in Summerside.
“We’ve had lots of contact from our partners and our watershed groups who are concerned that they are mixed up in the situation,” McIsaac said.
“We just want to clarify that we have 25 watershed groups and they are part of a very important watershed alliance in the province.”
Gilles Arsenault — the former minister of economic development, trade and artificial intelligence and minister responsible for Acadian and francophone affairs — was removed from provincial cabinet on March 28 following a series of events dating back to the fall of 2024.
P.E.I. Ocean View Resort had applied at that time to work within a wetland, a permit for which was approved and issued on Oct. 31 of that year. It included a payment of $406,000 in compensation for 27.1 acres of wetland.
Arsenault, then the environment minister, met with the developer on Oct. 28, 2025, at which time the developer asked to work on an additional six or seven acres of wetland.
P.E.I. Premier Rob Lantz, in providing a timeline of the events earlier this week, said Arsenault had provided verbal approval for the work.
There is debate between Arsenault and the developer about whether the donation to Comité Diversité et Equité — which is in Arsenault’s district of Evangeline-Miscouche — had been in exchange for the minister’s approval of the permit.
Arsenault has said he never implied as such, but the developer felt changes to the permit were contingent on making the donation.
On Jan. 28, 2026, Comité Diversité et Equité received an e-transfer of $100,000 from the developer for a watershed project.
A tip to the Department of Land and Environment the next month that the developer was working in a wetland area beyond what was approved led to department inspectors following up with the developer’s representatives who indicated Arsenault had provided approval and compensation had been paid.
The department issued a stop-work order at the P.E.I. Ocean View Resort on Feb. 27.
On March 12, Land and Environment Minister Darlene Compton and staff in the premier’s office were briefed on the issue, and Lantz was informed the next day.
Lantz instructed the deputy minister of land and environment to engage outside legal counsel, and a final report was provided on March 27.
The premier dismissed Arsenault from cabinet the next day and suspended him from the Progressive Conservative caucus on March 29.
Lantz has referred the case to the province’s conflict of interest commissioner.
The former minister who Premier Rob Lantz turfed from cabinet and suspended from the PC caucus spoke briefly with reporters Wednesday. Opposition parties also pressed the government for a second day on Gilles Arsenault’s involvement in a donation a developer allegedly made to a non-profit in his district. CBC’s Wayne Thibodeau has more from the P.E.I. Legislature.
McIsaac said the P.E.I. Watershed Alliance is always concerned about wetland degradation, but is not “in the enforcement business.”
He said the alliance is responsible for wetland enhancement through its watershed groups, and if one of those groups has a concern, that information would be passed on to the Department of Land and Environment.
“Damaging a wetland has significant environmental concerns, and the wetlands play a very important role in our environment,” he said. “The biodiversity in the wetlands is incredibly important.”
McIsaac said the alliance’s had a “terrific” working relationship with Arsnenault during his time as environment minister.
“He was very supportive of the watershed alliance and the watershed groups, very aware of the local watershed groups in his area,” McIsaac said.
“With all the ministers that we work with, we’ve had a really good working relationship and they understand how important it is to work with the watershed alliance.”