Selinger leaps to Ashton’s defence amid flood-fight purchase strife

Hey there, time traveller!
This article was published 17/06/2015 (3844 days ago), so information in it may no longer be current.

Premier Greg Selinger has directly inserted himself into a controversial flood-fighting contract that has one of his ministers under fire and has reopened wounds related to the cabinet mutiny.

According to a statement from the premier’s office released Wednesday following a Free Press exclusive about a whistleblower complaint against Infrastructure Minister Steve Ashton, Selinger ordered the $5-million deal to acquire flood-fighting equipment for First Nations go to public tender.

However, that order from the premier came four months after the province had publicly announced the flood protection urgently needed for Peguis First Nation would be provided.

Ashton has denied any wrongdoing and that the appropriate approval process was followed.

In a statement released Wednesday, the premier’s office said Selinger provided direction that the purchase be put out for tender in October after Treasury Board and cabinet discussed the procurement.

“Appropriate tendering was conducted and the RFP remains open and online on the MERX website,” the statement said. “There has been no purchase made of flood protection equipment for these First Nations or Interlake Reserves Tribal Council (IRTC).”

MERX is Canada’s online tendering service for government contracts.

Selinger was attending the ministerial conference on the Canadian Francophonie in Toronto and was unavailable.

That tender was posted Dec. 19 and despite closing Jan. 28, remains unawarded. Three bids were submitted.

Under opposition questioning in the house on Wednesday, Ashton said the government was dealing at the time with First Nation concerns over a loss of fisheries due to the operations of a temporary outlet from Lake St. Martin and plans for a permanent outlet. First Nations also indicated they needed flood-mitigation equipment, he said.

“We have to deal with real-time flood situations, which we did,” he said.

The Free Press reported that a whistleblower, in a complaint to the ombudsman’s office, alleged Ashton may have placed himself in a conflict of interest with one of the suppliers of the flood-fighting equipment, International U.S. Flood Control, the makers of Tiger Dams. The company’s representative in Manitoba is restaurateur Peter Ginakes.

The whistleblower’s complaint coincided with the resignations of five cabinet ministers in November in protest of Selinger’s leadership. Three of the ministers — then finance minister Jennifer Howard, jobs and economy minister Theresa Oswald and municipal government minister Stan Struthers — sat on treasury board.

Each has declined interview requests.

The resignations triggered a leadership battle between Selinger, Oswald and Ashton with Selinger coming out on top after a March 8 vote by party delegates.

Ashton has said he and Ginakes are friends. Ginakes and his family donated to the NDP in the 2011 election campaign and in Ashton’s 2009 party leadership bid, which he lost to Selinger. Ginakes is chairman of the Chief Peguis Investment Corp., according to its website. The investment corporation is mandated by Peguis First Nation to pursue investments to benefit the community.

“Do I know Peter Ginakes? Absolutely,” Ashton said in an interview. “I’ve known him for many years. I’ve known him from my Greek community connection, but half of Winnipeg knows him, too.”

A spokeswoman for Ashton said he is aware of Ginakes’s position with the Chief Peguis Investment Corp., and that he has the rights to sell Tiger Dams in Manitoba.

The spokeswoman said Ashton has not promoted any one brand of flood mitigation equipment.

“He has often mentioned brands such as Aqua Dams and Tiger Tubes and others in his public appearances as examples of the kinds of equipment that help in the flood fight,” Rachel Morgan said.

Ginakes was travelling abroad Wednesday and unavailable for comment. Paul Vickers of International U.S. Flood Control and former Peguis First Nation chief Glenn Hudson did not respond to phone messages.

The premier’s office said in its statement that then acting ombudsman Mel Holley looked into the whistleblower’s complaint, and through discussions with the clerk of executive council Milton Sussman, found nothing on which to proceed.

The statement said the tribal council received $5 million from the federal government for the equipment, and has made the purchase of 20 Tiger Dam emergency response units.

Opposition Leader Brian Pallister said the allegations raised by the whistleblower, that an attempt was made to rush a $5-million deal for flood-fighting equipment through the approval process, affirms the NDP has no respect for Manitobans.

“What we have here is a dysfunctional government,” Pallister said Wednesday.

“What is becoming more and more obvious is that the dysfunction didn’t just happen because of the rebellion. The dysfunction preceded the rebellion, and it’s following the rebellion.

“So the dysfunction of this government is placing Manitobans at risk.”

bruce.owen@freepress.mb.ca

— With files from Larry Kusch