Ex-New Brunswick premier Shawn Graham quits after conflict of interest report

FREDERICTON – Former New Brunswick premier Shawn Graham is leaving politics after an investigation concluded he violated conflict of interest laws.

The province’s conflict of interest commissioner released a report this week saying Graham was in a conflict of interest when his Liberal government gave a $50 million loan guarantee to a construction company.

Patrick Ryan said Graham should have removed himself from cabinet discussions in March 2009 over the loan guarantee to Atcon because his father, Alan, was a director of Vanerply — a Swedish subsidiary of Atcon — and a paid consultant of Vanerply and other Atcon companies.

Ryan said while Graham didn’t check whether his father had ties to the Miramichi-based firm at the time the loan guarantee was offered, it was his responsibility to know that.

“He chose not to know when he reasonably should have,” Ryan said in his report, recommending that Graham be fined $3,500 and reprimanded.

After the report was released, Graham issued a statement saying the conflict was an “oversight” on his part and he accepts full responsibility for his actions.

Graham, 45, was first elected to the legislature in 1998 and became premier in 2006.

He lost the 2010 election and resigned as Liberal leader six weeks later, but continued to serve as the member for the riding of Kent.

He says he will step down March 11.

He is the first politician to be found in a conflict since the Conflict of Interest Commissioner’s office was created in 2000.

Atcon went bankrupt in 2010, a year after the loan guarantee was provided.