NDP pushes MPI connection to beleaguered consultant

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This article was published 18/05/2023 (848 days ago), so information in it may no longer be current.

NDP Leader Wab Kinew called on the Progressive Conservative government to withhold money potentially owed by Manitoba Public Insurance to consultant McKinsey and Co., which is accused of deceptive marketing to promote opioid sales in a class-action lawsuit by the B.C. government.

The Crown corporation’s relationship with the global consulting giant came under fire again in question period Thursday.

MPI hired McKinsey in September 2021 to help deliver its $290-million information technology project through multiple, untendered contracts valued at more than $12 million.

“McKinsey is accused of marketing opioids in a way that made the drug crisis worse,” Kinew said in the chamber. “It’s costing lives across our country.”

The B.C. government sued the consulting firm in late 2021.

McKinsey is accused of developing tactics to market and promote opioids, despite knowledge the drugs were addictive and aggressively promoted for conditions that opioids were not effective in treating.

On Thursday, the Globe and Mail reported the federal government is planning to join the class-action lawsuit. McKinsey has received at least $116.8 million in federal contracts since 2015, according to Ottawa.

Kinew accused the Tories of trying to “give millions of dollars” to McKinsey through MPI.

“Will the premier agree to stop payments to McKinsey, and instead join the B.C. government in its lawsuit against this company to try and measure some amount of justice for the opioid crisis and its impacts in Manitoba?” the Fort Rouge MLA said.

Premier Heather Stefanson and Justice Minister Kelvin Goertzen, the minister responsible for MPI, were absent from the house Thursday (Stefanson was in Brandon).

Economic Development Minister Jeff Wharton said the government has ordered two ministerial directives to address concerns at the publicly owned auto insurer.

A directive issued in February requires the Crown corporation to use a competitive process when sourcing goods and services and to receive ministerial approval for changes made to contracts awarded without competition.

A second directive requires it to conduct a third-party organizational review, which will examine MPI’s business lines, resource allocations, senior management complement, operational expenditures and other areas.

A report is due by the end of the year.

“I’ll take you back under the NDP, where (MPI) had signed 19, and I repeat, 19 untendered contracts in 2014. Forty-five untendered contracts in 2015,” Wharton said in response. “We’ll take no lessons from the NDP on accountability.”

The Tories have been in power since 2016.

On Thursday, the Opposition leader also released a document suggesting MPI amended its six-month service agreement with McKinsey in December 2022. The purpose of the amendments were unclear.

MPI spokeswoman Kristy Rydz said the corporation does not have a contract with McKinsey, as of Thursday.

Speaking to reporters after question period, Kinew said the province should state whether McKinsey will receive any further payments from MPI, alleging deficiencies with the work provided by the firm.

The Opposition released internal correspondence Wednesday showing MPI management raised concerns about McKinsey’s performance and recommended corrective action be taken.

The NDP also provided records indicating MPI had paid $3.3 million to McKinsey for work under a contract valued at $9.9 million, as of March 29, 2023.

The Crown corporation said services ultimately provided by McKinsey met its requirements, and MPI was extremely satisfied with the outcomes.

Asked if reneging on obligations to McKinsey would only cost MPI ratepayers more, Kinew insisted concerns remain about whether the consultant is living up to its contract.

“In an instance like this one, where there are serious concerns being raised within the Crown corporation about whether this consultant is doing work, it would certainly merit further investigation and scrutiny from the provincial government, because it’s costing you more money,” he said.

MPI has committed to completing its information technology overhaul on time and on budget. It’s scheduled to be wrapped up in the 2025-26 fiscal year and will move basic customer services online.

danielle.dasilva@freepress.mb.ca