Winnipeg’s former Chief Administrative Officer Phil Sheegl has paid more than $1.15 million to the city.
This comes after a judge agreed in 2022 with the city’s claim that Sheegl accepted a $327,000 bribe from Caspian Construction, the company that built the new police headquarters at the former Canada Post building.
The project ran $79 million over budget upon its completion in 2016 and led to inquiries into the actions of other former elected officials and senior employees of the City of Winnipeg.
The city alleged that Caspian Construction and dozens of others, including Sheegl, carried out a conspiracy to inflate prices and quotes to drive up the cost of the build. The police HQ was initially estimated to cost $135-million, finishing with a price tag of $214-million.
The former CAO previously stated that the $327,000 was for an unrelated real estate deal in Arizona, while the city argued that it was a bogus deal to cover up the payment.
Sheegl’s payment breaks down as follows:
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- Damages – $677,200
- Costs – $398,806.57
- Interest – $75,719.79
- Total = $1,151,726.36
The city says it will recognize the funds in 2026 in its General Revenue Fund as “Other Income.”
Mayor Scott Gillingham called the payment a relief.
“It’s good news for the people of Winnipeg. We believed that the people of Winnipeg deserved their money back, and that’s why we pursued this in court, and now we have payment from Phil Sheegl.”
RCMP officers raided Caspian Construction’s head office in 2015, seizing dozens of boxes, filing cabinets, and documents. The prosecution eventually decided against laying criminal charges, citing the unlikelihood of conviction.
The city’s settlement with Caspian means the contractor is still on the hook for $23.5 million, but that total jumps to $28 million if it’s not paid by March 24.
“Since the police headquarters, there has been external audits,” explains Gillingham. “The city has implemented recommendations. We have made significant changes to our practices since the police headquarters matter. We have also hired a chief construction officer to help us oversee major construction projects. Changes have been made in city practices to do all we can to prevent this kind of thing from happening again.”
In early 2025, the Manitoba government announced it would be launching an inquiry into the construction of the police headquarters. The province budgeted $2 million for the inquiry, which is expected to wrap up in 2027.
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