Police headquarters inquiry set to begin in February

A decade after corruption and cost overruns plagued the conversion of the former Canada Post warehouse and office tower into the Winnipeg Police Service’s downtown headquarters, a date has been set for a provincial inquiry.

Commissioner Garth Smorang has set aside 44 days beginning Feb. 10, 2026, for the probe ordered by the NDP government.

A hearing for those who wish to have standing and participate in the inquiry is set for Sept. 10 at the Public Utilities Board offices downtown. The $2-million inquiry is expected to conclude June 18. Smorang has until Jan. 1, 2027 to issue his report.

The inquiry will examine the ability of the City of Winnipeg to implement large-scale construction projects while protecting the public interest, its website says. It is to determine “any measures necessary to restore public confidence” in the city’s ability to get major projects done in a cost-effective, timely, efficient and ethical manner. It will look at whether best practices are followed in governance, risk management and accountability to minimize cost increases and delays and prevent “dishonest practices or acceptance of inducements” (bribes).

The inquiry will also look at the dealings of officials at the time, including the mayor, the chief administrative officer and other senior employees of the City of Winnipeg related to large-scale construction projects.

The WPS HQ opened in June 2016, two years behind schedule and at a cost of about $214 million — well above its original $135-million price tag.

An external audit later found the project had been severely mismanaged.

The RCMP conducted a lengthy investigation into fraud and forgery allegations, but no criminal charges were laid.

In 2018, the city filed a statement of claim for damages for alleged construction deficiencies from major contractor Caspian Projects and structural engineering consultants Adjeleian Allen Rubeli, alleging both companies were “negligent” in their work. In 2020, the city launched a civil suit against Caspian, AAR and dozens of other defendants, alleging a fraudulent scheme inflated the price of the project.

An out-of-court settlement approved by council in March 2023 would see the city receive $21.5 million if the payment was made in full within 12 months of council’s approval, increasing to $23.5 million if paid within 36 months.

In a 2022 civil proceeding, Manitoba Court of King’s Bench Chief Justice Glenn Joyal found that former CAO Phil Sheegl had accepted a $327,000 bribe from Caspian Construction in 2011.

Joyal ordered Sheegl to pay the City of Winnipeg $1.1 million in severance payments and penalties. Sheegl appealed the decision. The appeal court upheld the ruling and said Sheegl’s conduct was so “serious and so reprehensible” that the penalties could have been much higher “to satisfy the need for retribution, deterrence and denunciation.”

The city did not respond to a question Thursday about whether it has received payment from either case.

carol.sanders@freepress.mb.ca