MPI board chair quits after CEO pay boost, travel bill made public
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Hey there, time traveller!
This article was published 15/05/2023 (847 days ago), so information in it may no longer be current.
The Tory-appointed board chair of Manitoba Public Insurance has resigned amid a government-ordered review of the Crown corporation’s operations.
Portage la Prairie dentist Michael Sullivan quit his job on the public auto insurer’s board of directors last week, Justice Minister Kelvin Goertzen said.
Sullivan’s resignation follows a Free Press report that MPI chief executive officer Eric Herbelin received a three per cent pay bump last year and spent 38 business days travelling even as the price of the Crown corporation’s information technology program ballooned and the Public Utilities Board ordered increased financial reporting and oversight.
Goertzen, the minister responsible for MPI, thanked Sullivan for his time on the board.
“I appreciate the work that (Sullivan) has done, and that’s challenging, and I had good discussions with Mike and I know he did his best in some challenging situations over the last couple of years,” Goertzen told the Free Press.
Sullivan declined to do an interview on Monday, owing to scheduling conflicts related to his dental practice.
Instead, he provided a statement that says he is focusing on his patients and family. Sullivan was appointed to the MPI board in February 2019.
“It was an honour to serve the people of Manitoba, but after four years it was time to move on,” Sullivan said.
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Province ‘absolutely not defending’ MPI CEO pay raises: Goertzen
Goertzen has refused to defend the pay increase awarded to Herbelin, or comment on executive travel expenses — which totalled over $88,000 in 2022-23 — saying he did not know the details of the CEO’s travels. He hinted changes to the board were imminent.
On Monday, the minister’s office would not offer its take on why Sullivan resigned.
In recent months, the Progressive Conservative government was forced to issue two directives to the corporation to address what it has described as significant concerns about untendered contracts, executive staff turnover, financial projections, hiring plans and other issues identified by the PUB, which is the regulator.
The first directive ordered the corporation to use a competitive process when sourcing goods and services after it was made public MPI had awarded more than $12 million in untendered contracts to consulting firm McKinsey for Project Nova, which is now budgeted to cost $289 million.
The second directive, made last month, ordered an independent third-party review of the corporation’s lines of business, allocation of staffing and resources, senior management, operational expenditures, and financial forecasting.
MIKE DEAL / WINNIPEG FREE PRESS FILES
Justice Minister Kelvin Goertzen, the minister responsible for MPI.
MPI was also barred from making material changes to its business operations during the review period. The report is due on or before Dec. 31.
Herbelin has told the Free Press the board of directors was “extremely supportive of management and very vested in all decisions and discussions we’ve had for the last couple of years.”
The MPI boss also welcomed the external review, saying lines of communication with government have been wide open and MPI is “doing the right things.”
On Monday, MPI refused to comment on the change, stating responsibility for the board rests with the government and the Lieutenant Governor in Council.
Former MPI chief administrative officer and vice-president Ward Keith has been appointed to take over as board chairman. No other changes to the board were made.
“With (Sullivan’s) resignation, we needed somebody who could sort of quickly step in, understand the organization, understand the role of a Crown corporation,” Goertzen said.
Manitoba Liberal Leader Dougald Lamont described the departure as a positive change and endorsed Keith’s appointment with cautious optimism.
“(MPI) has gone through a ton of turmoil, but frankly a lot of that turmoil happened under the board chair who just resigned,” Lamont said. “They really need to get a handle on what’s going on there and they need a steady hand on the tiller. I hope experience will make that happen.”
Keith was vice-president of business development and communications at MPI for four years, prior to retiring in 2019.
ETHAN CAIRNS / WINNIPEG FREE PRESS FILES
MPI chief executive officer Eric Herbelin.
Over a 34-year career with the corporation, he was also executive director of driver safety and regulatory control, director of customer service, and a serious injury claims specialist, according to his professional profile.
Keith was not immediately available for an interview Monday — it was his first day on the job and he required time to review the file, MPI corporate secretary Anthony Guerra said in an email — but provided a statement.
“I’m honoured to assume the role of board chair for Manitoba Public Insurance, and look forward to working with the rest of the board of directors to provide governance and oversight to MPI’s senior leadership team,” Keith said.
“As a Crown corporation, MPI is accountable to the people of this province, and I look forward to ensuring Manitobans continue to receive value from the public insurance system that has served us so well over the past five decades.”
Matt Wiebe, the NDP’s critic for MPI, was not made available for an interview on Monday owing to house duties. In a statement, he repeated calls for a meeting of the legislature committee on Crown corporations to be held so MPI’s board chair and CEO could be questioned by MLAs.
“The PCs have mismanaged MPI and ultimately it’s ratepayers who will pay the price,” Wiebe said.
danielle.dasilva@freepress.mb.ca
History
Updated on Tuesday, May 16, 2023 2:16 PM CDT: Adds art of Michael Sullivan
