Sheegl says publicity around Winnipeg Police HQ project has impacted his family

Phil Sheegl and Caspian Construction’s owner Armik Babakhanians took the stand at the Winnipeg Police headquarters inquiry. Jeff Keele has more.

Phil Sheegl said because of bribe allegations over the police headquarters project and the publicity that has followed, he feels he’s being pushed out of Winnipeg.

“I’m social enemy number one, at least that’s how I feel,” said Sheegl.

The former City of Winnipeg CAO concluded his testimony Thursday at the inquiry into the purchase and renovation of the downtown Canada Post building, which ballooned in price.

Near the end of his remarks, Sheegl said this has caused anguish in his business life. He testified banks have shut him out, including one he was with for 25 years. Sheegl also spent a lot of time talking about the negative impact this has had on his family. He said this has not been fair for them.

“It’s been really hard over the last 16 years to have the last name Sheegl.”

A civil court judge concluded in 2022 that Sheegl took a $327,000 bribe from Caspian, the projects general contractor. Former Mayor Sam Katz and Sheegl have said the money was for a real estate deal in Arizona.

Sheegl said it is disheartening, deflating, and crushing to be accused of the acts, which he again denied.

“I take great offence to the accusations that were made and that were ruled by the courts.”

Next up on the witness stand was Caspian owner Armik Babakhanians. He was asked by Commission Counsel Heather Leonoff about a February 2011 meeting at city hall.

After the meeting Babakhanians wrote an email to himself as a reminder that read in part, “I think he wanted 2 + 2 for Sam and Phil.”

Leonoff asked Babakhanians if he thought Sheegl was asking for money for Sheegl and Katz.

“I thought I heard two and two, OK,” said Babakhanians.

“Two and two what?” asked Leonoff.

“Well, that’s exactly,” replied Babakhanians. “I never expanded on it. I never said anything. I just left it that way.”

Babakhanians also denied asking for or receiving any payments.

“Did you ever pay Mr. Sheegl or Mr. Katz any money for helping you get this project?” asked Leonoff.

“No, ma’am,” said Babakhanians.