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Manitoba to spend $2M on inquiry into Winnipeg’s police headquarters

Manitoba plans to spend $2 million on its inquiry into the construction of Winnipeg’s police headquarters, the NDP government plans to announce Tuesday morning.

A source in Premier Wab Kinew’s government said Monday the province has selected labour lawyer Garth Smorang to serve as the commissioner for an inquiry that will review the actions of former elected officials and civil servants in the procurement and construction of the police headquarters in Manitoba’s capital.

The project, which saw the city purchase a former Canada Post office and warehouse complex and convert it into the new home of the Winnipeg Police Service, was completed in 2016 for $214 million, $79 million over the council-approved budget in 2011.

The project was also the subject of two external audits, a five-year RCMP investigation that concluded in 2019 without any charges, and civil litigation by the city against former chief administrative officer Phil Sheegl, primary contractor Caspian Construction and other contractors.

The litigation against Sheegl concluded in 2022 with a court ruling that the former CAO had accepted a $327,200 bribe from Caspian principal Armik Babakhanians and must pay the city $1.1 million.

Sheegl lost an appeal of that decision in 2023, when the appeal court determined Sheegl engaged in 14 breaches of duty between 2010 and 2012 — and that former Winnipeg mayor Sam Katz can be considered a material witness, even though he was not a party to the lawsuit and is not accused of any wrongdoing.

The city’s lawsuit against Caspian and other contractors was settled in 2023, when Babakhanians and the other defendants agreed to pay the city no less than $21.5 million.

The two civil suits utilized thousands documents amassed by the RCMP during its investigation of the project. While city officials have stated those documents have illuminated many aspects of the project, Mayor Scott Gillingham’s office welcomed the provincial government’s decision to hold an inquiry.

“Winnipeggers deserve the full story, and this is an important step to get it,” said Colin Fast, a spokesperson for Gillingham. “He looks forward to the results.”

Two men sit at a committee table.
Phil Sheegl, left served as a senior public servant at city hall from 2008 until 2013. Sam Katz, right, served as mayor from 2004 to 2014. (CBC)

The police-HQ inquiry will be far narrower in scope than the inquiry city council had formally requested from the provincial government eight years ago.

In 2017, when Brian Pallister was Manitoba’s premier and Brian Bowman served as Winnipeg’s mayor, city council voted to ask the province to launch a public inquiry into “any and all matters” related to the construction of Winnipeg’s police headquarters and a series of municipal real estate transactions that were examined in a 2014 external review.

Those transactions included the the Parker land swap, the purchase of the Canada Post complex that became the police headquarters, the aborted sale of vacant land near the Canadian Museum for Human Rights, and the city sales of the Winnipeg Square parkade and the former Canad Inns Stadium site.

A broader inquiry on this scale likely would have cost the province more than $2 million. The Charbonneau commission, Quebec’s public inquiry into construction-industry corruption, cost $35 million by the time it was completed in 2015.

In Manitoba, the inquiry into the death of Phoenix Sinclair cost $14 million by the time its final report was presented in 2014.

The proposed cost of the police-headquarters inquiry is closer to two Manitoba inquiries conducted nearly two decades ago: the $3-million inquiry into the wrongful conviction of James Driskell, which wrapped up in 2007; and the $2.6-million, 2008 inquiry into police conduct following the death of Crystal Taman.

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