Instability, confusion, and too many layers of management: that’s the verdict after an external review of Manitoba’s Crown-owned auto insurance corporation.
The review by consulting firm Ernst and Young has determined that it’s unclear who is responsible for different lines of business at Manitoba Public Insurance (MPI), and 20 organizational changes in only a two-year period has added to the chaos.
MPI has a relatively high number of managerial layers, the report says, with 30 per cent of management roles have three or fewer people reporting to them directly.
The review was launched under the former Progressive Conservative government after concerns were raised around a rise in staff expenditures as well as contracts being awarded without open bidding.
MPI is also facing major cost overruns on a technology overhaul, which is now almost triple its original budget.
The corporation’s board dismissed the CEO in the spring, and the NDP government, sworn in in October 2023, replaced most board members as one of its first moves.
Current board chair Carmin Nedohin says the organization needs clear and achievable goals.
“What we’re committing too,” Nedohin said, “is to put a strategic plan in place fairly quickly, and see how all of the recommendations fit into that strategic plan.
“It certainly is a blueprint for us to go forward.”
The NDP government minister responsible for MPI, Matt Wiebe, says it’s clear something needs to be done.
“We have full confidence that the board is going to take this report seriously, is going to start making those changes, and we’re going to start to see a stronger and a more affordable MPI going into the future,” Wiebe told 680 CJOB.
Wiebe said the former government had no clear mandate for the Crown corporation.
“Three CEO changes, 20 management changes, just in the last couple of years, really speaks to the fact that there was no clear direction from the former government… and so that’s why we wanted to change that. One of our first acts as government was to change the board.
“There is a lot to fix… we ended the strike, we started to work through the backlog, but now it’s time to get to work — it’s time to change the organization at MPI and start elevating the right people at the right positions.”
– With files from The Canadian Press