PC MLA Peter Sandhu
Credits: HANDOUT PHOTO
Sandhu is accused of filing an inaccurate sworn affidavit.
The affidavit stated he was out of the country from December 2012 to February 2013 and left out information that his company owed more than $100,000.
According to a statement from Alberta Premier Alison Redford, Sandhu will take a leave from caucus until an investigation by the ethics commissioner is completed.
Wildrose Leader Danielle Smith said earlier Sandhu is entitled to the presumption of innocence, but there are discrepancies between the court records and legislature records and called for his suspension.
"I further call on Premier Redford to instruct the justice minister to appoint an independent prosecutor to supervise the investigation," said Smith.
"It is important to all Albertans, including Mr. Sandhu, that this issue be sorted out promptly and in a manner which is above suspicion."
NDP Leader Brian Mason said section 18 of the Conflicts of Interest Act is there to protect against backroom deals.
"Albertans expect a higher ethical standard from their elected officials than these actions show," said Mason.
"But that's not something they see from this PC government. So the PC caucus needs to make a decision about what kind of ethical standard they are going to demand from MLAs in their caucus and govern themselves accordingly."