Fight for Sask. PC’s $2 million trust highlighted in court battle

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It’s a pot of money any political party would love to get its hands on, but those in charge of the Saskatchewan Progressive Conservative Party’s $2 million trust fund have managed to keep the lid on — for now.

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The latest attempt to take over the funds, according to court documents filed in December, is alleged to have happened in early 2022.

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In those documents, defendants involved in a lawsuit over a PC leadership spat claim they “discovered a conspiracy” between some party executives and “certain outside individuals” attempting to take over the party and its trust fund.

“Lots of people want that money,” said Grant Schmidt, the lawyer representing the defendants, in an interview this week.

Schmidt was on the party executive up until Jan. 16 and previously served as an MLA, cabinet minister and party president.

Schmidt said he was unable to share more details about plans to get the trust because it is in legal proceedings. The allegations have not been tested in court.

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The legal case involves plaintiff John Goohsen and defendants Victor Teece, Wayne Mastrachuk and Yvonne Choquette. Goohsen filed a lawsuit in August, alleging PC executives revoked his title as interim leader of the party after being rightfully appointed.

Goohsen was a former vice-president with the PCs, Teece was the party’s former interim leader and Choquette was the former party secretary. Mastrachuk remains the party’s chief official agent.

Multiple sources within the PC Party say executives ruled Goohsen’s appointment out of order and nullified it after they believed individuals associated with the Saskatchewan United Party (SUP) had worked with some party executives to take over the PCs and its trust fund.

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During a February meeting, SUP affiliates Ken Rutherford and Lee Noble were appointed as vice-presidents at large. At the time, SUP was not a registered party but Rutherford and Noble were looking to build it. However, their appointments, like Goohsen’s, were later cancelled.

Goohsen told the Leader-Post in August “he couldn’t care less” about the trust fund when asked if he and SUP members wanted it.

In their statement, the defendants claim Goohsen’s appointment “was out of order and the appointment was null.”

In his affidavit, Goohsen states he spoke with Schmidt in February, before his title was revoked, about plans to add “members at large” and “a possible merger with another political party.”

Goohsen’s legal team is now attempting to remove Schmidt as the defendants’ legal representative, arguing that Schmidt is in a conflict of interest because he was a member of the PCs up until February and provided legal advice to the party and Goohsen personally.

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In an email to Goohsen’s lawyer, Schmidt denied the accusation, stating that Goohsen never sought “legal or political advice” from him during that time period. He stated the last time he spoke with Goohsen was on Jan. 16.

When asked about attempts to remove him, Schmidt said, “I take that as a compliment.”

“This is about the fourth takeover attempt of the party,” Schmidt said.

The battle within the PCs puts a spotlight on the $2-million-plus trust fund and its history.

It was subject to a lengthy legal battle in the late 2000s with the Saskatchewan Party, until the PCs won control of it in 2014.

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During that dispute, PCers alleged that Sask. Party operatives were trustees of the fund and had attempted to keep the PCs poor. The trust operates as a separate entity from the party, made up of a board.

While it has attracted political operatives in the Conservative world, some allege the fund has also been used to control the party.

Ken Grey, who ran for the party as leader during the 2020 election, said he would only receive funds from the trust if he made certain political decisions and claimed the party was going to pull funding if he stuck around.

Gray believes the PCs are guarding the trust because it symbolizes their win against the “Goliath” of the Sask. party

He suggested the party could not compete electorally with the dollars that were made available, noting the other big players, like the Sask. Party and NDP, spend more than $1 million on party and candidate expenses.

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“I just thought it was really strange that members of our own party just sought to destroy what we were trying to build,” Gray said.

Rick Swenson, the PCs current interim president, acknowledged the fund keeps the party afloat.

However, he denied Grey’s allegations, arguing that Gray was unable to raise lots of donations for his campaign.

Swenson said the trust has a floor of about $2 million and that it contains a deed that must be followed. He said the deed would need to be changed should a new political entity become a beneficiary.

“The little bit that the trust can generate over a four-year period of time is not going to win you an election,” he said. “And it was set up that way at arm’s length with people that aren’t officers of the party, so that some leader can’t come along and squander the whole thing.”

In this lawsuit, Goohsen is seeking damages but has not identified a cost. The matter over whether Schmidt can represent the defendants is expected to be heard in court in February.

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