Former CAO denies accusation of fictitious land deal in Winnipeg Police headquarters inquiry

Winnipeg’s former CAO was grilled for the second day about his role in the Winnipeg Police headquarters project. Jeff Kelle reports

Phil Sheegl strongly denies an accusation that he made up a land deal in Arizona to cover up an “incentive” from the police HQ project’s general contractor.

The former City of Winnipeg CAO was answering questions for the second day at the inquiry into the renovation of the former Canada Post building.

In 2022, a civil court judge concluded Sheegl accepted a $327,000 bribe from Caspian Construction, the firm that was awarded the construction contract.

Both former Mayor Sam Katz and Sheegl testified the money was from the sale of a share of property in Arizona to Caspian’s owner, Armik Babakhanians, in 2011.

But the city’s lawyer, Michael Finlayson, suggested to Sheegl that the $327,000 payment was an “incentive.”

“It was money, which was an incentive to you and Mr. Katz to help Mr. Babakhanians on the Winnipeg police headquarters project,” said Finlayson.

“You’re totally incorrect,” replied Sheegl.

Finlayson also suggested there was no land deal. He said the city believes an agreement dated May 2012 was only drawn up in 2017 because of media attention and that Mounties were investigating.

“(The city) believes that it was done by you and the connivance of Mr. Katz in order to fend off potential criminal charges arising from the payments,” said Finlayson.

“The city is completely wrong,” said Sheegl.

No criminal charges were brought forward following a lengthy investigation that saw RCMP raid Caspian’s former offices in 2014.

The project’s original price tag was $135 million but ended up costing the city $214 million.