A public inquiry into the Winnipeg police headquarters project is examining payments made to city officials by a developer. Armik Babakhanians, the owner of Caspian Projects, denied allegations that $327,000 paid to two officials was a bribe for securing a city contract.
Background of the Inquiry
The police headquarters project was originally budgeted at $135 million but ultimately exceeded $70 million over that budget by the time it was completed in 2016. The inquiry was prompted by findings from a civil court case initiated by the city in 2022.
The case revealed that Phil Sheegl, the former chief administrative officer of Winnipeg, had accepted bribes from Babakhanians. Sam Katz, then mayor during the contract award, also received funds related to a real estate transaction in Arizona.
Details of the Payments
Katz and Sheegl maintain that the $327,000 they received from Babakhanians was part of a legitimate real estate sale, although a judge described this agreement as fictitious.
- Amount in Question: $327,000
- Transaction Nature: Alleged real estate sale vs. bribe
- Developer: Armik Babakhanians, Caspian Projects
- Key Officials: Phil Sheegl, Sam Katz
Babakhanians was asked about the nature of a $200,000 payment labeled as “consultant fees.” He flatly rejected suggestions that it was a thank-you for facilitating the project’s approval.
Key Testimonies and Findings
During the inquiry, Heather Leonoff, the lead lawyer, questioned Babakhanians about an email he sent in 2011, which mentioned the numbers “2 + 2.” Sheegl had previously denied requests for funds, claiming no discussion was made regarding such payments.
Sheegl was also subject to an RCMP investigation, which did not lead to any charges. His actions were criticized by the Manitoba Court of Appeal, which labeled them as “disgraceful” and “unethical.” He repaid the city $1.1 million and expressed strong discontent towards the accusations against him.
Aftermath of the Inquiry
The inquiry follows a broader effort by the Manitoba government, at the request of the city council, to examine the financial dealings involving government officials. Babakhanians’ claim that there was no wrongdoing reflects the ongoing debate over transparency and ethics in local governance.
The inquiry is ongoing, and its findings could have lasting implications for public trust in city officials and the management of municipal projects in Winnipeg.
