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The city of Winnipeg says that fraud and kickbacks were a part of the construction of their new police headquarters in a second lawsuit filed against the construction companies and others involved in the building process.
According to the lawsuit, the city purchased a former Canada Post building in 2009 to be remodeled into a new police headquarters. The city allegedly contracted with Caspian Construction, subcontractors, architects, engineers, and others to work on the project.
However, according to the city of Winnipeg’s lawsuit, the construction companies and others had secretly entered into an agreement to inflate prices on the project, allegedly driving up costs for the city and, in turn, tax payers.
The lawsuit alleges that the first agreed upon contract price of the project was approximately $135 million. However, that price crept up as Caspian Construction and other defendants allegedly inflated their costs, from $156 million to ultimately $214 million. The defendants are accused of submitting inflated and even fraudulent invoices, quotes, and orders as a part of what it calls “The Scheme,” according to Global News.
The city of Winnipeg alleges that the fraudulent scheme garnered defendants over half a million dollars in kickbacks over the course of the police headquarters project.
According to the report by Global News, this is the second lawsuit launched against Caspian Construction by the city. The first lawsuit launched in 2018 alleged defects in the construction of Winnipeg’s police headquarters. That complaint alleges over a dozen major problems in the construction of the building, including deterioration, problems with emergency lighting, and issues with drainage. There has not yet been a resolution in this lawsuit, according to Global News.
The lawsuit reportedly comes on the heels of a decision by the provincial government of Manitoba not to pursue charges against the construction companies and other defendants. As a part of the province’s investigation, the RCMP had gathered information surrounding the alleged fraud and kickback scheme, according to Global News. Now, the city of Winnipeg wants this information to support their lawsuit over the police headquarters.
“If the provincial government is not prepared to take action to protect taxpayers in response to the police headquarters scandal, I can assure Winnipeggers that their municipal government will use any and all legal means under its authority to seek accountability,” said the Mayor of Winnipeg in a recent press conference.
The city of Winnipeg is seeking damages, including alleged overpayments that occurred as a part of the police headquarters kickback scheme, damages for the alleged fraud, as well as legal and other professional fees.
What do you think about the accusations in Winnipeg’s police headquarters lawsuit? Tell us in the comments below.
The city of Winnipeg is represented by Michael G. Finlayson of Marr Finlayson Pollock LLP.
The Winnipeg Police Headquarters Lawsuit is the city of Winnipeg v. Caspian Projects Inc., et al., Case No. CI 20-01-25295, in the Queen’s Bench, Winnipeg Centre, Canada.
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