City of Winnipeg looking to spend extra $2M on Police HQ fraud case

By | September 20, 2020

WINNIPEG — The City of Winnipeg is looking at spending more than $2 million more in legal fees than budgeted over the police headquarters fraud case.

On Monday, the Executive Policy Committee will receive recommendations from Winnipeg Public Service in regards to the ongoing legal case.

The service recommends approval be given to the Legal Services Department to over-expend its 2020 operating expenditures budget by $2,250,000. The money would be used for external legal counsel and forensic accounting services to assist with the case.

If the bigger budget is approved, the service recommends awarding an estimated $1,050,000 contract to Deloitte LLP for forensic accounting services required for the litigation and use at trial.

The city first commenced civil action on January 6, 2020, after a five-year RCMP investigation yielded no criminal charges.

The statement of claim listed no specific amount of money – it seeks general, special and punitive damages to be determined at trial.

The city alleges it suffered financial losses because the defendants – including Caspian Construction, former Winnipeg CAO Phil Sheegl and others – conspired with each other to obtain a secret profit for their own benefit.

The Executive Policy Committee will discuss the increase in legal fees Monday at 9:30 a.m.

-With files from CTV’s Josh Crabb

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