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Long wait for flood compensation was ‘not acceptable’: Manitoba auditor general

Manitoba's auditor general says the province's department of infrastructure didn't follow key rules, such as compensating claimants affected by artificial flooding on time as the regulation stipulates, nor did it sufficiently communicate with potential claimants surrounding their eligibility for damages.
Manitoba's auditor general says the province's department of infrastructure didn't follow key rules, such as compensating claimants affected by artificial flooding on time as the regulation stipulates, nor did it sufficiently communicate with potential claimants surrounding their eligibility for damages. John Woods / The Canadian Press

Manitoba’s auditor general says some landowners affected by artificial flooding caused by the operation of the Shellmouth Dam on the Assiniboine River waited more than eight years for compensation.

Tyson Shtykalo investigated complaints into the provincial government’s handling of compensation for property owners hurt by floods in 2011, 2012, and 2014, which culminated in a report released Friday that makes five recommendations. The August report says the government agrees with the recommendations and is committed to doing a better job in the future.

Shtykalo found that Manitoba’s department of infrastructure didn’t follow the regulation because it failed to compensate claimants in a timely fashion, nor did it adequately communicate with potential claimants about the application process and their eligibility for damages. For example, some people missed out on appeals.

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“During our examination, we heard from Manitobans who experienced significant hardships waiting for compensation,” Shtykalo wrote in the report. “Some landowners devoted hundreds of hours away from their business and personal lives to pursue their claims.”

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“This is not acceptable.”

Shtykalo also said he was concerned officials often failed to inspect flood damages, according to the provincial regulation.

The report indicates property owners weren’t present when some inspections took place, pointing out that just over two per cent of them were completed according to regulation: six inspections out of 275 claimants over the three flood years.

Manitoba began building the Shellmouth Dam, located by Asessippi Provincial Park near the province’s border with Saskatchewan, in 1964, following a 1950 flood that forced an estimated 100,000 residents to evacuate their homes. The dam’s construction finished in 1972 and served to protect a number of Manitoban cities like Brandon, Portage la Prairie and Winnipeg, holding back water flowing from the west.

The province established a regulation in 2011 that addresses the effects of the Shellmouth Dam flooding, including financial relief provided through a compensation program for damages from artificial flooding.

“Claimants should reasonably expect a compensation process that is clearly laid out, consistent and timely,” Shtykalo said in the report.

The auditor general made five recommendations, including placing time limits on key steps in the application process, producing guidelines on what inspectors should document in their files, and setting up a communication strategy to make sure people know how the compensation program works.

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Manitoba’s infrastructure department says it’s committed to reviewing the act and regulation to see if it can make improvements.

“Manitoba Infrastructure is committed to improving the delivery of the Shellmouth Dam Compensation Program and communication with our stakeholders to ensure that they are aware of the program scope, the type of compensation that may be provided, as well as the documentation requirements that will allow them to best support their claims,” a statement from the department said in the report.

— with files from The Canadian Press

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