Former Cao Pays City $1.15m After Police Hq Construction Scandal

Winnipeg’s erstwhile Chief Administrative Officer Phil Sheegl has paid much than $1.15 cardinal to nan city.

This comes aft a judge agreed successful 2022 pinch nan city’s declare that Sheegl accepted a $327,000 bribe from Caspian Construction, nan institution that built nan caller constabulary office astatine nan erstwhile Canada Post building.

The task ran $79 cardinal complete fund upon its completion successful 2016 and led to inquiries into nan actions of different erstwhile elected officials and elder labor of nan City of Winnipeg.

The metropolis alleged that Caspian Construction and dozens of others, including Sheegl, carried retired a conspiracy to inflate prices and quotes to thrust up nan costs of nan build. The constabulary HQ was initially estimated to costs $135-million, finishing pinch a value tag of $214-million.

The erstwhile CAO antecedently stated that nan $327,000 was for an unrelated existent property woody successful Arizona, while nan metropolis based on that it was a bogus woody to screen up nan payment.

Sheegl’s costs breaks down arsenic follows:

• Damages – $677,200
• Costs – $398,806.57
• Interest – $75,719.79
• Total = $1,151,726.36

The metropolis says it will admit nan costs successful 2026 successful its General Revenue Fund arsenic “Other Income.”

Mayor Scott Gillingham called nan costs a relief.

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“It’s bully news for nan group of Winnipeg. We believed that nan group of Winnipeg deserved their money back, and that’s why we pursued this successful court, and now we person costs from Phil Sheegl.”

RCMP officers raided Caspian Construction’s caput agency successful 2015, seizing dozens of boxes, filing cabinets, and documents. The prosecution yet decided against laying criminal charges, citing nan unlikelihood of conviction.

The city’s colony pinch Caspian intends nan contractor is still connected nan hook for $23.5 million, but that full jumps to $28 cardinal if it’s not paid by March 24.

“Since nan constabulary headquarters, location has been outer audits,” explains Gillingham. “The metropolis has implemented recommendations. We person made important changes to our practices since nan constabulary office matter. We person besides hired a main building serviceman to thief america oversee awesome building projects. Changes person been made successful metropolis practices to do each we tin to forestall this benignant of point from happening again.”

In early 2025, nan Manitoba authorities announced it would beryllium launching an enquiry into nan building of nan constabulary headquarters. The state budgeted $2 cardinal for nan inquiry, which is expected to wrap up successful 2027.