Contractors plead guilty to manipulating Manitoba Housing contracts

The Manitoba Law Courts are seen in Winnipeg on January 10, 2025. The Manitoba Association of Crown Attorneys (MACA) say rising caseloads and staff vacancies could have in impact on public safety, and are calling on the government to help. (Jamie Dowsett/CTV News Winnipeg)

Five Manitoba contractors have pleaded guilty to manipulating dozens of social housing contracts over several years.

The five contractors in Brandon – Geoff Gregoire, James Kauk, Guy Pringle, Doug Gunnarson and Ryan Lamont – all pleaded guilty to one count of conspiracy to allocate contracts under the Competition Act.

The Competition Bureau called it a serious crime aimed to suppress competition.

“Collusion in public contracts allows a handful of unscrupulous businesses and individuals to profit at the expense of taxpayers,” Matthew Boswell, Commissioner of Competition, said in a statement. “It also reduces the public funds available to respond to sometimes urgent and basic needs, such as affordable housing.”

Gregoire has been ordered to pay $61,000, and Kauk must pay $53,000. Pringle has been ordered to pay $33,000, Gunnarson was fined $25,000 and Lamont was fined $24,000.

The five were charged in December 2022 following an investigation by the Competition Bureau. They were accused of dividing up contracts among themselves for refurbishment services for social housing units.

“Their scheme allowed them to determine in advance which one would obtain the public contract and to establish the price of the project funded by taxpayers,” a release from the Competition Bureau reads.

The Bureau said the five manipulated at least 54 contracts awarded by the Manitoba Housing and Renewal Corporation between December 2011 and February 2016. The contracts were valued at roughly $3.5 million.

In a statement, the spokesperson for the province said the Manitoba Housing and Renewal Corporation was made aware of the issue in 2014, and launched an investigation. The spokesperson said changes have been made to avoid a similar situation from happening.

“MHRC made modifications to the bid submission process, implemented a more robust segregation of duties and increased emphasis on adherence to conflict-of-interest policies,” the spokesperson said in a statement.