The Manitoba Prosecution Service is once again reviewing whether to lay criminal charges regarding the Winnipeg police headquarters project. This third investigation follows the release of a final report from a public inquiry that uncovered significant ethical failures during the construction of the facility.

What triggered the new review?

The current investigation began in July after the public inquiry surfaced additional information and evidence. Prosecutors are now determining if this new material is admissible and if it could change previous decisions to decline charges.

The project, which converted a former Canada Post building into police headquarters, was marked by several issues:

  • It finished two years behind schedule.
  • Costs rose nearly $80 million above the original $135-million budget.
  • Allegations of bribery, fraud, and mismanagement surfaced throughout.

Findings from the public inquiry

The 193-page report released Monday by Commissioner Garth Smorang contained harsh critiques of former city officials. The inquiry found that former mayor Sam Katz "violated the public trust," while former chief administrative officer Phil Sheegl showed a "complete lack of a moral compass" due to blatant conflicts of interest.

These conflicts involved Armik Babakhanians, the owner of Caspian Construction, which was awarded the contract. While a court had previously held Sheegl responsible in a civil case for taking a $327,000 bribe from Babakhanians, criminal charges have remained elusive. Prosecutors noted that a criminal trial requires a much higher burden of proof and stricter rules of evidence than a public inquiry.

What happens next?

The prosecution service stated that its review is ongoing and promised to issue a statement once a final decision is reached. This follows two previous reviews—one in 2019 and another last year—that both concluded without criminal charges being laid.

FAQ

Has anyone been charged criminally yet?

No, previous investigations by the RCMP and two separate reviews by prosecutors did not result in criminal charges.

What was the outcome of the civil litigation?

The city successfully recovered a $28-million settlement earlier this year following litigation regarding fraud and construction issues.