Report finds construction company got $42M in excess claims on Winnipeg police HQ

An inquiry into the development of Winnipeg's police headquarters has concluded that the city overpaid the lead construction company, Caspian Construction, tens of millions of dollars. Commissioner Garth Smorang reported that Caspian received about $42 million in excess claims over a 52-week period, with an additional $1.3 million paid to a consulting firm's employee for project costs that were misdirected.

The $70 million-overbudget project, completed in 2016, included the renovation of a former Canada Post building, which was previously investigated for fraud by the RCMP. No charges were laid. Former chief administrative officer Phil Sheegl was found to have accepted a bribe from Caspian's owner in a civil court case, though he claimed the money was for a separate real estate transaction in Arizona.

Smorang issued 25 recommendations in his final report, focusing on procurement policies and the handling of major city projects, including the need to improve request for proposals for large-scale projects.