RCMP search of Caspian Construction’s office complete
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Hey there, time traveller!
This article was published 22/12/2014 (4123 days ago), so information in it may no longer be current.
The Manitoba RCMP have completed the execution of a search warrant at the construction company hired to oversee the renovation of the Winnipeg Police Service’s new headquarters.
The RCMP raided the McGillivray Boulevard offices of Caspian Construction on Wednesday morning as part of what the Mounties describe as a “full investigation” of the $210-million police-HQ project.
RCMP investigators spent a total of three days at Caspian’s office and departed the location on Friday.
RCMP spokeswoman Tara Seel said the Mounties have no further comment, as the police-HQ investigation is ongoing.
It is unclear precisely what the RCMP are investigating. The police HQ project has been plagued by $74 million in cost overruns and has been marred by mismanagement, process, procurement and appraisal issues identified in a project audit by KPMG and a Winnipeg real-estate audit conducted by EY.
The city forwarded those audits to Manitoba Justice, which in turn asked the RCMP to review them in August — along with a “brown-envelope” letter alleging doctored invoices and a payment to a member of city council.
The city hired Caspian in early 2011, when the firm was awarded a $50,000 construction-management contract as part of a joint venture with another firm, Akman Construction, which then departed the project.
Later in the year, former Winnipeg chief administrative officer Phil Sheegl awarded Caspian what was initially a $137.1-million construction contract. Council had delegated the authority to make the contract award to the CAO.