MPI to undergo organizational review after concerns raised over staffing, costs

Manitoba’s justice minister has ordered Manitoba Public Insurance to undergo an external organizational review after concerns raised over the last few months regarding the crown corporation’s expenditures.

Kelvin Goertzen says the review is ordered due to “concerns raised by the Public Utilities Board (PUB) in recent rate applications as well as concerns I have raised both publicly and privately to MPI.”

Earlier this year, the PUB said it noticed big jumps in MPI’s staffing expenditures, with more than 400 new jobs added since the start of the COVID-19 pandemic.

The board also pointed to an IT renewal project at the public insurer that was initially budgeted to cost $106.8 million when announced in 2020 and is now budgeted for between $257 and $290 million.

“As I have stated in the past, the Manitoba government is reluctant to interfere in the general operations of Crown corporations,” Goertzen said, “However, a publicly held corporation is answerable to Manitobans for its service, expenditures and operations.”

The review is to be completed by December 31 and Goertzen says during this time, MPI is directed to not propose any changes to rates for service or materially change its operations.