Province ‘absolutely not defending’ MPI CEO pay raises: Goertzen By: Danielle Da Silva Posted: 7:07 PM CDT Tuesday, May. 9, 2023

Hey there, time traveller!
This article was published 09/05/2023 (852 days ago), so information in it may no longer be current.

Justice Minister Kelvin Goertzen isn’t backing a three per cent pay bump awarded last year to the president of Manitoba Public Insurance amid concerns with its operations, saying changes to the Crown corporation’s board could be imminent.

On Tuesday, the Steinbach MLA and minister responsible for the public auto insurer was challenged by NDP critic Matt Wiebe to explain why MPI chief executive officer Eric Herbelin received a $11,300 raise in 2022 — the same year it was revealed the cost of modernizing its information technology systems had ballooned to $289 million from $128.5 million.

“The handpicked MPI CEO received not one but two raises, and he also racked up $88,000 in travel costs as he toured the country for the equivalent of 7 1/2 weeks away,” Wiebe said in question period, citing a Free Press report published Monday.

“This PC government and their handpicked board, including Grant Stefanson (cousin of Premier Heather Stefanson’s husband Jason) signed off on all of this.”

Herbelin was paid $375,563 in 2022 — an increase of more than three per cent from the $363,263 he earned on the first year on the job in 2021.

While MPI refused to disclose Herbelin’s salary for 2023, sources confirmed total remuneration went up again following an external compensation review, the Free Press reported.

“The handpicked MPI CEO received not one but two raises, and he also racked up $88,000 in travel costs as he toured the country for the equivalent of 7 1/2 weeks away.”–NDP critic Matt Wiebe

The MPI head also spent 38 business days travelling for the Crown corporation in 2022-23, in addition to paid vacation time. The reasons for, and costs of, those trips were not provided to media. However, total executive travel expenses for the year ending March 31, 2023, were more than $88,000.

In early January, the Public Utilities Board ordered additional oversight for MPI’s technology modernization and online service plan Project Nova, saying it was concerned expenses will continue to rise and with an “apparent lack of management control over (information technology) expenses.”

Meantime, MPI staff represented by the Manitoba Government and General Employees’ Union were subject to a two-year wage freeze, ordered in November 2020, and are currently negotiating a new contract after their last agreement expired in September.

In question period Tuesday, Goertzen said the government is “absolutely not defending” raises provided to Herbelin, saying the Progressive Conservatives have issued directives to MPI (including launching an organizational review) because they are concerned with operations at the corporation.

“We had concerns. We’re taking action,” Goertzen said.

Speaking to reporters following question period, Goertzen declined to comment on Herbelin’s salary. However, the MLA said he and other members of government took a five-year wage freeze because it “was the right thing to do.”

Goertzen also noted, over his decades-long career as an MLA, he has not incurred $88,000 in out-of-province travel expenses.

The justice minister said the government is not issuing raises to executives at MPI, and so it’s not for the government to defend such raises. He would not say if his office was aware of the salary increases.

“The corporation runs independently, but there were concerns about a number of different cost issues,” Goertzen said. “So I wasn’t defending what the board and others have decided to do.”

Goertzen also declined to speak about executive travel expenses at MPI, saying he doesn’t know the details of the CEO’s travels, but ratepayers expect to receive value for money.

“My expectation is that folks who are drawing funds from taxpayer dollars directly or indirectly should govern themselves that way.”

Goertzen said there may also be additional changes made to MPI’s board of directors, following the appointment of Springfield-Ritchot MLA Ron Schuler to the oversight body in April.

Asked if he has concerns about decisions taken by the board, Goertzen did not respond directly, saying decision making processes is part of the organizational review ordered last month.

“The corporation runs independently, but there were concerns about a number of different cost issues… So I wasn’t defending what the board and others have decided to do.”–Justice Minister Kelvin Goertzen

The board is currently chaired by Portage la Prairie dentist Michael Sullivan. A request for comment from the board chair was not immediately returned Tuesday.

Wiebe said MPI’s board needs to explain why executive salaries and expenses are increasing at the same time as Project Nova’s cost remains uncertain.

The NDP MLA for Concordia also questioned why issues at the Crown corporation are only addressed after they become public through media reporting or the PUB.

“If (the board) is not being held accountable, if they’re not answering questions, then we need to see some changes there,” Wiebe said, noting Goertzen regularly meets with the board.

“The buck stops with the minister.”

danielle.dasilva@freepress.mb.ca