Winnipeg inquiry finds $42M in excess claims for police HQ construction

A public inquiry into the development of the Winnipeg Police Service headquarters has concluded that the city was overcharged by tens of millions of dollars. Inquiry Commissioner Garth Smorang reported that Caspian Construction received approximately $42 million in excess claims during the project. Additionally, $1.3 million intended for project costs was reportedly diverted to a consulting firm employee.

The project, which involved the renovation of a former Canada Post building, finished more than $70 million over its original budget. Smorang noted that without these overcharges, the final costs would have remained within the limits approved by the city council in 2011.

The report also addressed misconduct and breaches of the City of Winnipeg Council Code of Conduct. Former Chief Administrative Officer Phil Sheegl and former Mayor Sam Katz were identified in relation to conflicts of interest. A 2022 civil court ruling had previously found that Sheegl accepted a bribe from the owner of Caspian Construction, which Katz testified was related to an unrelated real estate transaction in Arizona. Smorang issued 25 recommendations to improve procurement policies and the management of large-scale municipal projects.