The Ontario government says it’s removing a developer from an environmental advisory committee a month after appointing him.
The appointment of Sajjad Hussain to the province’s Species at Risk Program Advisory Committee was made on Aug. 31 — three months after he settled in court allegations that he and his business partner misappropriated millions of dollars in a Markham townhouse development.
The accusations were already detailed in court documents posted online at the time of Hussain’s appointment.
The Ford government said it would remove the Richmond Hill-based developer from the advisory committee after the Star asked a question about the appointment on Friday. A spokesperson for the premier’s office would not say what specifically the government found concerning, only that “given the seriousness of these allegations, we will be revoking Mr. Hussain’s appointment.”
Hussain, CEO of Sunrise 91ԭs, told the Star he was “honoured on behalf of our company to be approached and considered” for the advisory committee. He did not respond to questions about the allegations against him and his firm.
He said he was unable to attend the ministry’s training session that was required before he began his term on the committee, and “that would have triggered the revoking of an appointment offer.”
The revocation comes as Ford’s Progressive Conservative government is under siege over its $8.28-billion Greenbelt land swap scandal. The controversy surrounding the government’s cosiness with developers has already led to the resignations of two ministers and two political staffers.
With nine members, the committee established under Ontario’s new is responsible for providing expertise and advice to the minister of Environment, Conservation and Parks on endangered species protection and recovery. It meets at least twice a year. Members are eligible to receive expenses.
“The advisory committee is one of the last lines of defence to ensure that government policy is protecting biodiversity and ensuring endangered species of the province have advocates,” said Margaret Prophet, executive director of the Simcoe County Greenbelt Coalition.
It is not clear why the Ford government selected Hussain, a developer, for this position. In a 2021 report, Ontario’s auditor general criticized the process for appointments to the species at risk advisory committee for being not transparent. At that time, a majority of members on the committee worked for associations or companies, half of which were registered lobbyists, the report says.
“The premier has no personal or professional relationship with this individual,” Caitlin Clark from the premier’s office said.
In March 2018, Sunrise 91ԭs hosted a meet-and-greet event that was attended by then-PC leader Doug Ford and Markham Mayor Frank Scarpitti.
When Hussain was appointed to the advisory board, the developer and his company Sunrise Acquisitions (Hwy. 7) were mired in debt following lengthy court proceedings.
Between 2017 and 2021, Sunrise defaulted on two mortgages for the development of its 52-townhouse Unionvillas project near Hwy. 7 and Main Street in Markham. By late 2021, a court ordered the five remaining unsold units be sold off to repay the company’s creditors, but at least $10 million was still outstanding.
A court-appointed receiver took over the company’s assets. While poring through Sunrise’s records, the receiver made some troubling discoveries.
Hussain and Sunrise’s co-director, Muzammil Kodwavi, had improperly diverted more than $10 million intended for the townhouse project, the receiver alleged. The money was allegedly transferred to the two directors as well as several other companies they’re affiliated with.
The receiver alleged in a Dec. 2022 court motion that the directors then cooked the books, maintaining an inaccurate ledger to conceal the true nature of transactions that “only served to enrich themselves and non-arm’s lengths parties to the detriment of the company and its creditors.”
In submissions and testimony as part of the court proceedings, Kodwavi maintained he and Hussain had valid reasons for the money transfers.
The developer said the Unionvillas project took much longer than expected to complete while interest and construction costs went up, and the market slowed down.
The money transfers were for “legitimate purposes” such as dividends and repayment of expenses.
Kodwavi said he and Hussain were only transferred $5.5 million, all of which he said would be repaid. He accused the receiver of having not “conducted a thorough, complete or accurate review.”
The receiver persisted, and in December, brought a motion seeking a court order to direct Hussain, Kodwavi, their spouses and other involved parties to repay all the money the receiver said they owed.
In May 2023, the two sides settled, with Sunrise agreeing to pay $10.5 million, according to court documents.
Sunrise 91ԭs is currently promoting a pre-construction townhome project in South Barrie and a new residential community in Elmvale.
