Gilles Arsenault has responded to his removal from cabinet over the weekend in relation to an alleged $100,000 donation made by a private developer to a non-profit group in the district he represents.

Saturday, P.E.I. Premier Rob Lantz removed Arsenault from his post as minister of economic development, trade and artificial intelligence and minister responsible for Acadian and francophone affairs. Lantz said Monday that Arsenault has also been suspended from the Progressive Conservative caucus, pending an investigation by the province’s conflict on interest commissioner.

His removal followed a legal opinion detailing how a $100,000 donation from a private developer was allegedly made to a community group in Arsenault’s district of Evangeline-Miscouche.

In a post on social media Monday afternoon, Arsenault said he never implied an amendment to a permit applied for by the developer was “contingent on the donation, or vice versa,” saying he viewed them as “two distinct and different items.”

“When the developer spoke to me about making a donation, I provided him options of who he could donate to. As I said, I never saw them as connected in any way,” Arsenault wrote in the post. 

“The developer specifically mentioned wanting to do something related to education and environment. That’s why I suggested the organization I did as an option.”

Monday morning, Lantz laid out a timeline of his understanding of the events, which he said is evolving and may change following the conflict of interest commissioner’s review.

The premier said P.E.I. Ocean View Resort applied for a permit to work within a wetland in fall 2024. Lantz said the Department of Land Environment approved and issued the permit on Oct. 31 of that year, which included a payment of $406,000 for the compensation of 27.1 acres of wetland.

The developer of the project has said it would include a 27-hole golf course, a 96-room resort and a 53-unit condo building.

On Oct. 28, 2025, Arsenault met with representatives of the developers, who asked for permission to work on an additional six or seven acres of wetland that lie outside of the previously approved area. Lantz said the developers had not disturbed the four or five acres of the wetland that had received initial approval, and wanted to trade those acres for the six or seven other acres.

Lantz said Arsenault provided verbal approval, but there is debate between the developers and Arsenault about whether a donation made to a non-profit — Comité Diversité et Equité — was done in exchange for the minister’s approval for a change in the project’s scope.

“The suggestion of making a donation was not my idea, it was the developers. Where he chose to make his donation was completely up to him and in his own decision,” Arsenault wrote in his post.

“I also want to make it clear that I did all this with the best of intentions. I never wanted to break rules or cause issues for our community, the organization, nor the developer.”

Arsenault added he now realizes “the optics of the situation matter.”

“If the developer thought the donation was contingent on the permit, that was never the intention. Clearly there was a miscommunication and that’s very unfortunate,” he wrote.

“The money is being returned from the non-profit organization to the developer. I want to apologize to them for being part of this. I only suggested them because of the great work they do for our community.”

Arsenault also apologized to his constituents, his colleagues and the premier, saying he takes “full responsibility” for the situation.

“I will do everything I can to show Islanders that this one situation does not define who I am,” he wrote. 

“I will continue to advocate for our communities and constituents, and continue to be a strong voice for District 24.”

According to Lantz’s timeline, Arsenault contacted the non-profit committee in late 2025 to inquire whether it was active, could receive a donation and oversee a community project. The committee responded that it could.

Lantz said Arsenault told the deputy minister of environment, energy and climate action in fall 2025 that he met with the developers, who asked for “tweaks” to the approved permit. The minister said the changes were no big deal and that he had given verbal approval to the developer in October. 

The deputy minister asked for further details, Lantz said, and was told of the proposed land swap. The minister said it would not be necessary for the developer to pay additional wetland compensation. 

On Jan. 28, 2026, $100,000 was transferred by the developer to the committee for its watershed project. 

In February 2026, the Department of Land and Environment received a tip from the public that the golf course developer was working in an unapproved wetland area.

The day after that complaint was made, inspectors followed up with the developers’ representatives, who indicated that the minister had given permission for that work and that they had paid compensation. 

Department officials advised the deputy that the developer was working on an additional 12 to 13 acres outside the approved area, not an additional six to seven acres. 

On Feb. 27, 2026, the Land and Environment Department issued a stop-work order at the site. 

I don’t think anything really wrong was done, in my opinion.– Graham Cooke, golf course designer

Golf course and landscape architect Graham Cooke told CBC News on Monday he’d spent three or four years working on the project.

Cooke said he wasn’t his position to speak to the donation and he couldn’t say how the idea was brought up, but called Arsenault a “very upstanding guy to work with.”

“I don’t think anything really wrong was done, in my opinion,” he said. “Maybe some lack of judgement but I don’t think there was any intent to ever do anything wrong, that’s my opinion based on what I know.”

Cooke said staff from the Department of Land and Environment visit and review the site regularly.

“We’ll abide by what they ask us to do and follow along what we’re allowed to do.… Whatever they ask, we’ll do. That’s what we always do,” he said.

“They’re the ones that are protecting the land and I feel we’re protecting the land, too…. We understand the importance of the environment and keeping it safe and protecting it, but we also realize that tourism and job creation and everything like that is sometimes important also.”

He said construction of the course is close to being complete and it’s still slated for opening in 2027.