Inquiry into Winnipeg police headquarter construction finds excess claims went up to $50M

CTV’s Jeff Keele has more from the police HQ inquiry where a fraud investigator said he found a number of concerning invoices.

A forensic accountant estimated excess claims for the police HQ project in Winnipeg went as high as $50 million.

Victor Neufeld is testifying at phase two of the inquiry dubbed “The Money Trail.” The inquiry is examining the purchase and renovation of the former Canada Post building.

The city awarded the construction contract to Caspian.

Neufeld said, in his opinion, excess claims by Caspian, made to the city, ranged between $45 and $50 million dollars.

He detailed a number of concerns related to invoices.

“I describe all of these concerns as multiple material financial misrepresentations,” said Neufeld

Neufeld said he found inflated amounts, unpaid amounts for subtrade claims, and there were non-project costs included in some of the claims.

“Ultimately, I say the concerns appear to have the effect that Caspian’s project costs were reported to the city at amounts that were higher than they actually were.”

In 2014, RCMP raided Caspian Construction as part of an investigation. In court documents, Mounties alleged the city was the victim of a multi-million dollar fraud. No criminal charges were filed.

The city also sued Caspian and settled for up to $28 million.

Neufeld was hired by the city to examine Caspian’s financial interactions with the city.

Caspian’s lawyer, George Orle, raised a motion calling on inquiry commissioner Garth Smorang to stop the testimony so Orle could cross-examine Neufeld on his qualifications.

“This witness has been giving all sorts of evidence that is hearsay evidence, you have not ruled that he is entitled to do so,” said Orle.

Smorang denied the request.

“I believe this to be a fair process and fair to the parties and I also believe it to be in accordance with the law,” said Smorang.

Neufeld testified he spent more than seven years and four thousand hours on this file.