The P.E.I. Watershed Alliance has stated that it has not engaged in any discussions with a community group connected to a controversy involving a golf course developer and a provincial legislator. The non-profit organization clarified in a press release that the Comité Diversité et Equité is not affiliated with the alliance, and its members have not been in communication with the committee regarding watershed or educational projects.
Dale McIsaac, the chair of the watershed alliance’s board of directors, mentioned that there has been a surge in inquiries from partners and watershed groups following reports of an alleged $100,000 donation to Comité Diversité et Equité by the private developer of P.E.I. Ocean View Resort in Summerside. McIsaac emphasized that the alliance comprises 25 watershed groups that are integral parts of the provincial watershed alliance.
Gilles Arsenault, the former minister of economic development, trade, and artificial intelligence, as well as the minister responsible for Acadian and francophone affairs, was ousted from the provincial cabinet on March 28 due to events dating back to the fall of 2024. P.E.I. Ocean View Resort had sought permission to operate within a wetland, obtaining approval and paying $406,000 in compensation for 27.1 acres of wetland in October of that year.
Arsenault, who was the environment minister at the time, met with the developer on October 28, 2025, during which the developer requested authorization to work on an additional six or seven acres of wetland. Premier Rob Lantz disclosed a timeline of events, indicating that Arsenault verbally sanctioned the work.
There is a dispute between Arsenault and the developer regarding whether the donation to Comité Diversité et Equité, situated in Arsenault’s district of Evangeline-Miscouche, was linked to the minister’s approval of the permit. Arsenault denied suggesting such a connection, while the developer believed the permit modifications were contingent on the donation.
Following a tip to the Department of Land and Environment about unauthorized work in a wetland area, inspectors intervened, with the developer’s representatives asserting that Arsenault had endorsed the activities and settled the compensation. A stop-work order was issued at P.E.I. Ocean View Resort on February 27.
On March 12, Land and Environment Minister Darlene Compton and the premier’s staff were briefed on the matter, with Lantz being informed the next day. Lantz instructed the deputy minister of land and environment to seek external legal advice, leading to the submission of a final report on March 27. The premier subsequently removed Arsenault from cabinet and suspended him from the Progressive Conservative caucus on March 29, referring the case to the conflict of interest commissioner.
McIsaac emphasized the watershed alliance’s role in wetland preservation and enhancement through its groups, stating that they relay concerns to the Department of Land and Environment if necessary. He underscored the environmental significance of wetlands and biodiversity within these ecosystems.
McIsaac also praised the alliance’s positive collaboration with Arsenault during his tenure as environment minister, highlighting his support for watershed initiatives and local groups in his area. He stressed the importance of working closely with government officials to advance watershed conservation efforts.