Prosecutors are reviewing new evidence from the public inquiry into Winnipeg’s police headquarters project to determine whether criminal charges could be pursued.
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Prosecutors are reviewing new evidence from the public inquiry into Winnipeg’s police headquarters project to determine whether criminal charges could be pursued.
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Prosecutors are reviewing new evidence from the public inquiry into Winnipeg’s police headquarters project to determine whether criminal charges could be pursued.
The Manitoba Prosecution Service said Monday the review, launched in July, is examining whether evidence presented during the inquiry could change previous decisions not to lay charges in the scandal-plagued project.
The $2.1-million public inquiry took place over 27.5 hearing dates between February and May, and commissioner Garth Smorang released his final report Monday.
The prosecution service has twice previously explored criminal charges stemming from the project.
The conversion of the former Canada Post office building and warehouse on Smith Street into police headquarters was beset by allegations of fraud, bribery and mismanagement. The project was completed in 2016, two years behind schedule and nearly $80 million over its original $135-million budget.
An external audit found the project was severely mismanaged. A lengthy RCMP investigation into allegations of fraud and forgery resulted in no criminal charges.
In 2022, former city chief administrative officer Phil Sheegl was found civilly liable for accepting a $327,000 bribe from Armik Babakhanians, owner of Caspian Construction, which was awarded the headquarters contract. Sheegl was ordered to repay more than $1 million to the city.
The city also pursued civil litigation against Caspian and other defendants over alleged fraud and construction deficiencies, ultimately recovering a $28-million settlement earlier this year.
Despite the civil court findings, prosecutors concluded in 2019 that criminal charges could not be proven beyond a reasonable doubt. A second review by a retired prosecutor reached the same conclusion in February 2025.
The prosecution service said additional evidence emerged during the inquiry, prompting the latest review.
However, it cautioned that public inquiries operate under different rules than criminal trials, which require a higher standard of proof and stricter rules governing admissible evidence.
The commissioner’s office said Monday that individual testimony can’t be used against a person in future legal proceedings, but other evidence and documents from the inquiry could be.
The review is ongoing. The prosecutions branch has promised to publicly explain its findings once complete.
scott.billeck@freepress.mb.ca
Scott Billeck is a general assignment reporter for the Free Press. A Creative Communications graduate from Red River College, Scott has more than a decade’s worth of experience covering hockey, football and global pandemics. He joined the Free Press in 2024. Read more about Scott.
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