Manitoba prosecutors take second look, say no charges coming in construction project

The Winnipeg Police Service downtown headquarters is shown in a file image. (Jon Hendricks/CTV News Winnipeg)

WINNIPEG — Manitoba prosecutors have decided, for a second time, to not pursue criminal charges in the case of a construction project that ran well over budget and will soon be the subject of a public inquiry.

The Manitoba Prosecution Service has been reviewing the construction of the Winnipeg Police Service headquarters — a converted Canada Post building that ran $79 million over budget when it was completed in 2016.

There was an RCMP investigation that involved many people and in 2019 the prosecution service decided to not lay charges, citing an unlikelihood of conviction.

The NDP government recently announced it will hold an inquiry into the project to examine what happened and recommend changes for future construction projects.

The city filed a lawsuit against several people, including its former chief administrative officer, Phil Sheegl, who was found by a judge in civil court to have accepted a $327,000 bribe from a contractor.

The prosecution service says following the civil court finding and a later appeal, it launched another review and, last month, came to the same conclusion that there is no reasonable likelihood of a conviction.

“Alleged wrongdoing in a civil claim need only be proved on a balance of probabilities, or in other words, it is more likely than not that a wrong was done,” the service said in a written statement Wednesday.

“This is unlike criminal proceedings where the Crown must prove the criminal intent of the accused beyond a reasonable doubt.”

Sheegl argued the $327,000 was for an unrelated real estate deal in Arizona. He appealed the civil court ruling and lost. The Court of Appeal said Sheegl was engaged in 14 different derelictions of duty that amounted to disgraceful and unethical behaviour by a public servant.

The prosecution service said it retained a retired prosecutor for the most recent review.

“The review considered whether criminal charges should be authorized for accepting a secret commission ... fraud ... or breach of trust.

“Ultimately, the conclusion reached was that no criminal charges should be laid because there was no reasonable likelihood of conviction. The prosecution lacked proof beyond a reasonable doubt.”

The upcoming inquiry has been given a budget of $2 million and a deadline of Jan. 1, 2027, for a final report.

Garth Smorang, the Winnipeg lawyer appointed inquiry commissioner, has said he’s unlikely to delve into why the Crown did not lay charges.

Manitoba Justice Minister Matt Wiebe has said the inquiry will look for ways to make projects more transparent and to restore public trust.

This report by The Canadian Press was first published Feb. 26, 2025.

Steve Lambert, The Canadian Press