Politics · Canada · 1 hr ago
Inquiry finds Winnipeg police headquarters project was overpaid by $42 million
A Manitoba inquiry found that Caspian overcharged Winnipeg by $42 million during construction of the downtown police headquarters.
The project took place mainly from 2010 to 2013 and cost $209 million, above its budget of $193.6 million.
The inquiry said Caspian used altered invoices and found misconduct by nine people, including former mayor Sam Katz and former city administrator Phil Sheegl.
Winnipeg recovered $1.2 million from Sheegl and $28 million through a settlement with Caspian.
Mayor Scott Gillingham said the city will review the inquiry’s 25 recommendations and warned that it would pursue anyone who defrauds the city.
City staff say oversight and accountability have already been strengthened, and they will prepare a plan to put the recommendations into effect.
Manitoba’s prosecution service is reviewing the evidence to consider whether criminal charges should be laid.
A Manitoba public inquiry found that the Winnipeg police headquarters project involved serious mismanagement, misconduct and misrepresentations.
Commissioner Garth Smorang said Caspian Projects Inc. was overpaid by $42 million, bringing the project cost to $209 million.
The report found that former mayor Sam Katz violated public trust and that former chief administrative officer Phil Sheegl lacked a moral compass.
The city recovered $29 million through legal action, and the Manitoba Prosecution Service is reviewing the report’s evidence for possible charges.
Winnipeg Mayor Scott Gillingham said the city will review the report’s 25 recommendations.
- Who
- Commissioner Garth Smorang; former mayor Sam Katz and former chief administrative officer Phil Sheegl were among those named in the findings.
- What
- A public inquiry found misconduct and major overpayments in the construction of Winnipeg’s police headquarters.
- When
- The final report was released on Monday, October 19, 2026.
- Where
- Winnipeg, Manitoba, Canada.
- Why
- The inquiry examined the project after its costs rose and falsified invoices were discovered.
This story does not have two clearly opposing sides.
The inquiry focused primarily on work during these years, when construction costs climbed.
The Manitoba Prosecution Service announced that no charges would be laid after receiving documents from police.
Civil damages were awarded to the city after it launched litigation against Sheegl and Caspian.
The Manitoba government ordered the public inquiry.
Commissioner Garth Smorang released the inquiry’s final report.
- Overpayment
- $42 million, according to the inquiry report
- Total project cost
- $209 million
- Original budget
- $193.6 million
- City recovery
- $29 million: $1.2 million from Sheegl and $28 million through a Caspian settlement
- Recommendations
- 25
- Additional payment
- $1.3 million directed to Triple D Consulting Services Inc.
4 sources
Winnipeg mayor warns anyone trying to rip off city after inquiry report praises its efforts to recoup funds
Report finds more than $40M in excess claims, misconduct in Winnipeg police HQ construction
City of Winnipeg overpaid $43M for downtown police headquarters: inquiry report
What people are saying
Former mayor Katz violated the public trust and violated his obligations under the code of conduct that applies to council members and the mayor.
The way that it was handled was not to the level that one would expect a municipality to handle a construction project of that magnitude in so many respects.
If you try to rip off the City of Winnipeg and its taxpayers, we're going to come after you.