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Contractor overcharged city more than $40M during police HQ construction, inquiry commissioner concludes in final report
4 minute read Updated: 2:28 PM CDTThe final public inquiry report into construction of Winnipeg Police Service headquarters concludes there was misconduct and inflated costs and calls on the city to make changes to prevent the project’s shortcomings from being repeated.
Problems related to the headquarters at 245 Smith St. have plagued the city for more than a decade. First expected to cost $135 million, the price soared to $214 million, and included expenses related to flood damage and security upgrades.
An external audit found the project was severely mismanaged. RCMP completed a lengthy investigation into fraud and forgery allegations but no criminal charges were laid.
During the inquiry, a forensic accountant estimated $45 million to $50 million in excess claims were filed. Armik Babakhanians, owner of main headquarters contractor Caspian Projects, strongly denied allegations that his company overcharged the city.
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