‘Manitobans deserve to know the truth’: $2M inquiry launched into WPS headquarters project

The Winnipeg Police Service downtown headquarters is shown in a file image. (Jon Hendricks/CTV News Winnipeg)

The province is set to launch an inquiry into the construction of the Winnipeg Police Service (WPS) headquarters—the $200-million-plus project that saw its budget balloon out of control sparking audits and an RCMP investigation.

In a news release, Justice Minister Matt Wiebe said the inquiry will examine the circumstances surrounding the renovation of the headquarters and find any necessary measures to restore public confidence in the city’s ability to build large, publicly funded projects.

“Taxpayer dollars need to be spent transparently, and Manitobans deserve to know the truth,” he said.

“An inquiry into the police headquarters project will help restore public trust and confidence, and its recommendations will ensure best practices are used to prevent similar mistakes from being repeated.”

The inquiry’s scope will include reviewing the City of Winnipeg’s past and current policies for planning, approving and managing projects, as well as conflict-of-interest and disclosure obligations for elected officials and senior employees.

Lawyer Garth Smorang was appointed commissioner of the inquiry. According to the province, he has litigated a wide variety of cases in both the private and public sectors during his nearly 40-year career.

Smorang will decide the timing and manner of conducting the inquiry. A final report complete with findings and recommendations is due Jan. 1, 2027.

The province has pegged the cost of the inquiry at $2 million.

Manitoba Premier Wab Kinew campaigned in 2023 on calling an inquiry into the project.

The contentious history of the downtown WPS HQ project

The city bought the former Canada Post building on Smith Street in 2009. The project finished two years behind schedule and $79 million over budget.

An RCMP investigation ensued in 2014.

In December 2019, Manitoba Prosecutions announced there was not sufficient evidence to charge anyone criminally involved in the police station project.

The NDP obtained a three-page RCMP briefing note from May 2018 through an Access to Information and Privacy request, showing Mounties believed they had enough evidence for charges and arrests related to the construction of the project.

Previous court documents filed by the RCMP alleged the city was the victim of a multimillion-dollar fraud, as costs for the station spiked. A 2018 briefing note from RCMP to prosecutors said officers were investigating financial crimes of more than $33 million.

The city went on to sue its former CAO Phil Sheegl and two dozen other defendants over the project. In 2022, a judge ruled Sheegl accepted a $327,000 bribe from the contractor involved in the construction of the headquarters projects.

The judge awarded the city legal costs, the $250,000 paid to Sheegl in severance plus interest, as well as punitive costs of $100,000.

In 2023, city council agreed to settle two lawsuits the city brought forward related to cost overruns associated with the project.

The city won a minimum of $21.5 million from the agreement, which could rise to $28 million depending on when the money is paid to the city.

A 2023 report to council said this would cover both the “deficiencies” and “fraud” claims against all parties, minus the separate action against former city CAO Phil Sheegl and other defendants.

CTV News Winnipeg has reached out to the city for comment and is awaiting a response.

- With files from CTV’s Jeff Keele