Sheegl wanted to make sure Caspian was not ‘shut out’ of bidding process

One of the key figures in the Winnipeg Police Headquarters construction inquiry took the stand on Tuesday. CTV’s Jeff Keele has more on Phil Sheegl’s testimony.

One of the key figures involved in the Winnipeg Police HQ project took the stand at the inquiry probing the renovation of the building.

Former City of Winnipeg CAO Phil Sheegl testified he wanted to make sure Caspian Construction, who eventually won the construction contract, was not left out of the bidding process.

“I thought he was a good choice,” said Sheegl.

The project to buy and upgrade the former Canada Post building ballooned from $135 million to $214 million.

Sheegl testified he was comfortable lowering a performance bond for the construction contract from $40 to $25 million. The bond is collateral for the city.

Sheegl said he wanted to make sure more companies were able to bid, including Caspian owner Armik Babakhanians, whom he considered a “bonafide bidder.”

“I didn’t want him to get shut out,” said Sheegl.

The inquiry heard about a meeting between Babakhanians and Sheegl before the contract was awarded. While Sheegl said he couldn’t remember the meeting, he was asked if meeting with one bidder and not others may be seen as bias.

“It was probably not right to meet with him. It was not right to meet with him,” said Sheegl. “I didn’t even think that there would be a problem with meeting with him or other people.”

A civil court judge concluded Sheegl took a $327,000 bribe from Caspian.

Sheegl has always insisted it was for a land deal in Arizona with former Mayor Sam Katz and Babakhanians.

He also admitted doing a land deal with the general contractor of the project was a conflict of interest.

“In hindsight, it was stupid of me not to realize that,” said Sheegl.

Sheegl was also asked if he and Babakhanians ever discussed the Caspian owner making significant profits from the project and then sharing them with Sheegl and Katz.

“Absolutely, unequivocally, no,” replied Sheegl.

Sheegl is scheduled to continue testifying on Wednesday.