Three figures central to police HQ inquiry don’t live in Manitoba, can’t be compelled to testify: commissioner

Three key players in the Winnipeg Police Service headquarters scandal may not testify at the upcoming public inquiry because they no longer live in Manitoba and are beyond the commission’s power of subpoena, according to an interim report released Monday from inquiry commissioner Garth Smorang.

The report noted that the inquiry expects to hear from 34 witnesses in total, 11 of whom will be subject-matter experts retained by the inquiry to testify about technical issues, such as forensic accounting, procurement and construction law, and the construction industry.

Smorang said in his report “several” key figures in the corruption scandal have been issued “notices of alleged misconduct” ahead of public hearings.

However, he did note that none of the three recipients of those notices “has indicated that they will voluntarily attend to testify.”

“My ability to compel a witness to testify by way of subpoena pursuant to the Manitoba Evidence Act only extends to witnesses who can be served in the Province of Manitoba,” he wrote in the report.

“Three individuals who were served with confidential notices of alleged misconduct reside out of the province and as such cannot be subpoenaed to compel their attendance.”

The names of each week’s witnesses will be posted a week in advance. Hearings are scheduled to begin on Feb. 10.

Smorang has not decided whether he will name the three people living outside Manitoba who received the notices.

The report, which indicated all hearings will be public and livestreamed, confirmed that the inquiry will conclude on June 18, after 44 days of testimony.

Even without naming the three, speculation will focus on former mayor Sam Katz and Phil Sheegl, the former chief administrative officer at the city when the WPS headquarters deal was put together, who is also a personal friend of Katz. The two have done business together in the past.

Both live in Arizona for some or part of the year and may have permanent addresses there.

In September, Heather Leonoff, the commissioner’s chief council, said she expected Katz and Sheegl will testify. Both have been granted official standing at the inquiry, along with seven other individuals or companies.

However, official standing does not ensure individuals will testify, particularly if they live beyond the reach of subpoenas. Even without testimony, standing allows lawyers representing key figures to question other witnesses.

Lawyers for both Katz and Sheegl could not be reached for comment Monday.

Misconduct notices are typical in any public or judicial inquiry to provide advanced warning to potential witnesses that allegations will be made against them during the hearings. The notices are considered part of due process, giving the named individuals the opportunity to prepare by reviewing any evidence against them while also providing an opportunity to participate in the hearings, either as witnesses or by counsel.

The backroom dealing involved in the WPS downtown headquarters project remains one of the most compelling legal stories in the province’s history.

There were two RCMP investigations into allegations of fraud and corruption in relation to the project, which involved a massive retrofit of the former Canada Post terminal downtown. Once completed, the project cost $214 million, $79 million more than originally budgeted.

A civil suit filed by the city, and relying almost entirely on evidence uncovered by the RCMP, resulted in a finding that Sheegl accepted a $327,000 bribe from Caspian Construction to help the company secure the project through what was supposed to be a competitive bidding process.

In 2022, the Court of King’s Bench ordered Sheegl to pay back the City of Winnipeg $1.1 million to cover the bribe, the severance he received when he left his city position, court costs and interest penalties and damages. After three years of delays, Sheegl eventually paid the penalties last week which, when interest was calculated, added up to $1,151,726.36.

The city also recouped several million dollars in out-of-court settlements from Caspian Projects and its principals, structural engineering consultants Adjeleian Allen Rubeli and dozens of other defendants, alleging negligent work and fraudulent actions to inflate the price of the project.

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Those companies were also granted standing, along with the city and the Winnipeg Police Service.

Smorang’s report estimates that approximately 1.75 million documents are potentially relevant to the inquiry’s terms of reference and are in a searchable database accessible to all lawyers involved in the inquiry.

RCMP seized “voluminous documents” while executing search warrants at the offices of Caspian Construction, along with computers and hard drives. Additional documents were disclosed during the City of Winnipeg’s litigation against Caspian and others, the report says.

Smorang is expected to produce a final report in January 2027.

dan.lett@freepres.mb.ca

Dan Lett
Columnist

Dan Lett is a columnist for the Free Press, providing opinion and commentary on politics in Winnipeg and beyond. Born and raised in Toronto, Dan joined the Free Press in 1986.  Read more about Dan.

Dan’s columns are built on facts and reactions, but offer his personal views through arguments and analysis. The Free Press’ editing team reviews Dan’s columns before they are posted online or published in print — part of the our tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.