WINNIPEG – A public inquiry is set to commence today, addressing the cost overruns and controversies associated with a significant building project initiated by the City of Winnipeg. This inquiry was announced by the Manitoba government last year and aims to scrutinize the acquisition and transformation of a former Canada Post building, which has been repurposed as the new headquarters for the Winnipeg Police Service.
The project has experienced substantial financial discrepancies, culminating in a staggering $79 million over its original budget of $135 million by the time its construction was completed in 2016. These overruns have sparked considerable public concern and raised questions regarding accountability and governance within the city administration.
In a civil court ruling, former Winnipeg Chief Administrative Officer Phil Sheegl was found to have accepted a kickback of $327,000 from a contractor involved in the project. Although no criminal charges were filed against Sheegl, he contended that the funds were related to an unrelated real estate transaction in Arizona. Despite appealing the civil judgment, Sheegl's challenge was unsuccessful, as the Manitoba Court of Appeal described his conduct as “disgraceful, unethical behavior by a public servant.”
Among the notable witnesses scheduled to provide testimony this week is former mayor Sam Katz, who held office from 2004 to 2014. Sheegl himself is expected to appear before the inquiry next week, adding to the high-profile nature of the proceedings. Brian Bowman, the mayor who succeeded Katz, had advocated for the launch of this inquiry, emphasizing that the controversies arising from the building project jeopardized public trust in city governance.
The province has allocated $2.3 million in funding for the inquiry, which is expected to extend until June. Garth Smorang, the lawyer appointed as the inquiry commissioner, has stated that he plans to avoid revisiting issues already dealt with in court, aiming instead to explore new angles of the case.
The inquiry is systematically organized into five distinct sections. The first phase will provide foundational background information regarding the redevelopment project, while the second phase—scheduled for March—is designated as “The Money Trail,” hinting at a deeper examination of financial transactions and influences surrounding the construction.
As the inquiry progresses, it is anticipated to shed light on the complexities and ethical dilemmas associated with public projects, further probing into the repercussions that these controversies have had on the perception of municipal governance. The latest developments in this inquiry will undoubtedly attract public attention as the residents of Winnipeg and surrounding regions seek clarity and accountability in the handling of municipal finance and ethics.
