Police launch probe into towing deals

Hey there, time traveller!
This article was published 08/11/2024 (307 days ago), so information in it may no longer be current.

Winnipeg Police Service is conducting an internal review of its towing contracts, amid criticism over transparency and calls for a broader third-party probe.

In a brief written statement, WPS said it became aware of concerns about the contracts in August.

“An internal review commenced immediately. The WPS has since identified a gap in our contract administration processes and is conducting a thorough examination of our procedures and whether or not towing recoveries (fees) were properly submitted to the WPS,” wrote Supt. Brian Miln.

Police declined further comment, noting its review is “ongoing.”

Mayor Scott Gillingham welcomed the review, saying the city should address “inconsistencies” among towing contracts.

“We, as a city, need to always look at how we can improve our contracts so we get as many bidders as possible, for the sake of value for taxpayers,” said Gillingham.

The mayor said he expects police to find information that will help make future contracts more transparent.

“We want to make sure that the full potential value of the contract is laid out. That hasn’t been clear right now,” he said.

Gillingham suggested calls for an RCMP or other third-party, external review of WPS and Winnipeg Parking Authority contracts are premature because the city should first seek all information it can get from those agencies.

Coun. Janice Lukes told the Free Press towing contracts for both the WPS and parking authority are raising red flags. Lukes (Waverley West) said the WPS contracts have become increasingly vague in recent years.

For example, she noted a 2013 request for proposal for WPS towing required the winning bidder to report the time and date each vehicle was retrieved after being towed to a compound and the total charges paid by the owner/driver to the contractor on a “regular monthly basis.” The record-keeping requirements section in a 2019 contract did not list those details, nor did the same section of a 2024 contract.

The lack of detail limits the city’s ability to ensure it receives its flat fee of $25 per WPS-related tow, said Lukes.

Towing companies can charge nearly $500 every time they store a vehicle for 30 days and the overall police towing contract would earn a company millions of dollars, though vague contracts make the amount tough to calculate, she said.

Lukes, the deputy mayor, said she is glad to hear police are reviewing the contracts.

“The more eyes on this, the better,” she said.

Lukes said she’d ask RCMP if they are suited to review the matter. On Thursday, she said her key goal is to have an external agency conduct a probe.

The scrutiny over the contracts comes amid a city legal challenge against a towing company.

In 2023, the city sued Tartan Towing, alleging it had paid the company $1,115,626 between 2016 and 2022 for “invalid” tows Tartan either did not perform or recorded improperly. Tartan has denied the allegations and filed a counterclaim against the city. The allegations have not been proven in court.

On Aug. 2, 2024, the city awarded Tartan a contract to tow and store vehicles for WPS until at least June 30, 2025, with up to four optional one-year extensions, which Lukes said raised further questions.

A city spokesman said that contract was awarded to the “lowest compliant bidder.” The city has since decided to re-tender the contract after its first year, instead of awarding any optional extensions, due to “inconsistencies” among tow contracts.

Lukes has also expressed concern over Winnipeg Parking Authority contracts. While these more clearly noted the number of vehicles towed over the previous 12 months in 2020 and 2024, she questioned why the number of expected tows declined as the population grew.

The city cancelled its request for proposal for a 2024 parking authority contract late last month, with a letter to bidders citing “issues with the document preventing fair and equal evaluation of bids.”

A spokesman said that contract wasn’t awarded because new information on bid sheets was unclear.

Zakria Shoaib, director of Bison Towing, said his company submitted bids for the latest police and parking authority towing contracts.

Shoaib said he’s glad WPS is reviewing their contracts but still feels a more extensive third-party review is needed, which he’d prefer be done by the RCMP.

“It should be investigated from the outside, (by an agency that) has no involvement in this contract so that neutrality can be maintained,” he said.

Shoaib said he is not speaking out to get a contract for his company, but to ensure fairness in city bids.

“The whole point here is to make the market fair and (transparent),” he said.

Coun. Markus Chambers, chair of the Winnipeg Police Board, welcomed the review but said he, too, would also like a broader third-party probe.

“Any time where gaps are identified, where these allegations are being made, it should trigger that type of review…. It should be external,” said Chambers.

Gage Haubrich, prairie director of the Canadian Taxpayers Federation, echoed the call for a third-party review.

“The only way to keep the city and WPS accountable on spending of taxpayer dollars is to have things to hold them to account…. And if the contracts aren’t going to be detailed, there’s no way that taxpayers can do that,” said Haubrich.

He said he is also concerned vague contract language could hinder the city’s efforts to attract competitive bids.

“If all these companies are underbidding because they don’t fully know what’s going on, the city doesn’t fully know how its contract is laid out, it could end up in a lot of misspent funds,” he said.

joyanne.pursaga@freepress.mb.ca

X: @ joyanne_pursaga