Former Winnipeg Mayor Sam Katz expressed deep disappointment and offense throughout testimony at a public inquiry into the town’s police headquarters venture, rejecting claims that funds he acquired constituted a bribe.
Undertaking Background and Katz’s Tenure
Katz served as mayor from 2004 to 2014, overseeing the preliminary planning and begin of renovations to remodel a former downtown Canada Submit facility into new headquarters for the Winnipeg Police Service. The venture confronted important delays, price overruns, a number of audits, an RCMP investigation that led to no prices, and two lawsuits from the town.
Metropolis council authorized the $135 million buy and renovation in 2009. By the point police moved in throughout 2016, prices had escalated to $214 million as a consequence of development delays, change orders, and flood injury.
Court docket Rulings on Former CAO Funds
A 2022 Manitoba Court docket of King’s Bench resolution by Chief Justice Glenn Joyal decided that former Chief Administrative Officer Phil Sheegl accepted a $327,200 bribe in 2011 from Armik Babakhanians of Caspian Development, the venture’s contractor. The ruling described a land deal in Tartesso, Arizona, involving Sheegl, Babakhanians, and Katz as a “concocted story” fabricated in 2017 after the RCMP uncovered the cost.
The Manitoba Court docket of Enchantment, in a subsequent ruling by Justice Christopher Mainella, famous Sheegl achieved a virtually 700 p.c return on the Tartesso funding in below seven years, regardless of the 2007-2008 Arizona actual property crash. As trustee, Sheegl failed to tell all Winnipeg consortium beneficiaries of the transaction and shared income solely with Katz.
Particulars of the 2011 Funds
A Sheegl-controlled firm acquired $200,000 from a Babakhanians-controlled firm on July 22, 2011—two days after metropolis council licensed Sheegl to award the police headquarters development contract. Sheegl’s firm then paid Katz $100,000.
These transactions appeared in 2016 RCMP affidavits and later civil courtroom paperwork. Sheegl has paid the town $1.15 million in damages, whereas Babakhanians settled a separate lawsuit with a $500,000 cost towards a possible $28 million whole.
Katz’s Testimony Highlights
“I take nice offence. To me, the important thing factor in life is your popularity and your credibility,” Katz acknowledged throughout questioning by his lawyer, Danny Gunn, on the inquiry’s third day.
He described the deal as a authentic sale of property curiosity, insisting he felt “extraordinarily dissatisfied and offended” by solutions of impropriety. Katz confirmed a $100,000 cheque marked “mortgage” was really cost for the Arizona land.
Throughout cross-examination by Metropolis of Winnipeg lawyer Michael Finlayson, Katz admitted it didn’t happen to him to instruct Sheegl to reveal the cost from Babakhanians. He emphasised no private investments ever influenced his mayoral selections.
Phil Sheegl’s counsel, Evan Roitenberg, famous that in 2013, when the chief coverage committee misplaced religion in Sheegl and sought his elimination, Katz complied regardless of their friendship and shared funding. “Your fiduciary duties to the town trumped all. Would that be honest?” Roitenberg requested. “That’s correct,” Katz replied.
Katz praised Sheegl’s efforts: “Mr. Sheegl, for my part, was working very exhausting to get a brand new police headquarters constructed. Similar to every other venture.” He talked about their friendship has since light.
Inquiry Outlook
The inquiry, held on the Public Utilities Board workplaces in downtown Winnipeg, will hear from over 30 witnesses by way of June. It examines the venture’s circumstances and recommends measures to rebuild public belief in massive city-funded initiatives. Cross-examination of contracts knowledgeable Eleanor Andres continues Friday, with Sheegl and Babakhanians scheduled for subsequent week.
