In a recent legal document related to its civil case on the construction of the police headquarters, the City of Winnipeg said a subcontractor has been trying to avoid producing the documents it has been demanding since last fall.
The City has been requesting documents from McCaine Electric since September 2021. The company was not among the companies charged with conspiracy to defraud the City during the construction of the police headquarters.
Winnipeg said it needs the documents to understand how overpayments worth millions of dollars for electrical work were made.
The City said in an affidavit dated May 27 that it paid $ 33.8 million to the general contractor managing the project, Caspian Construction. These payments are made based on McCaine’s invoices and approved change orders, an industry practice that allows a contract to change when necessary to change the scope of work originally planned.
however, known payments to McCaine were approximately $ 23.7 millionwritten by one of the attorneys representing the City, Gabrielle Lisi, in an email dated October 2021 and attached to the sworn affidavit.
The lawyer said the City is trying to explain excessive claim approximately $ 10 million associated with approved change orders for McCaine’s extra costs.
The City filed a lawsuit in Manitoba’s Queen’s Bench Court in January 2020 against Caspian Construction and other companies and individuals involved in the construction of the police headquarters.
In an amended motion filed on May 4, the City detailed the course of the alleged scheme to defraud taxpayers.
Winnipeg is talking about fraudulent or exaggerated bids, invoices and change orders made to increase project costs.
According to the City, payments for these inflated bids and incorrect invoices were approved by the general contractor hired by the City and by consultants working on the construction project.
According to the documents, secret commissions and bribes were promised to contractors, consultants and their businesses.
The building of HQ of the police was completed a year late and exceeded the budget by $ 79 million.
A request for incorrect invoices
According to the City, handwritten notes about McCaine’s work at the construction site were found in Caspian’s files.
In an email to Caspian’s lawyer in October 2021, Gabrielle Lisi wrote: Hayley asked … for fake invoices of $ 124,980.14 dated July 26.
The email indicates that the City understood that Hayley was an employee of McCaine.
The attorney wrote that he wanted to know why this invoice was issued and requested all emails exchanged between Caspian and McCaine about it.
The City filed a copy of the submission McCaine made with Caspian on December 9, 2012. McCaine added total of $ 23.1 million and a note containing citations only Caspian should look is attached to it.
However, that submission was made days after Caspian owner Armik Babakhanians told the City he had fired McCaine.
The City wants McCaine to provide documents explaining why he agreed to remain associated with the project despite the severance of ties with Caspian in early December 2012.
Previous court documents show that on Dec. 3, 2012, the Armik Babakhanians sent an email to City Manager Phil Sheegl, with a carbon copy of then -Mayor Sam Katz, claiming he had just fired McCaine. because the company exceeded its budget by $ 10 million.
The message does not specify what the initial budget is.
McCaine paid Caspian $ 105,000
In court documents, the city filed a check showing that McCaine paid $ 105,000 to Caspian in October 2012. The city said it wanted to know if that payment was related to an overdue debt related to another construction projects.
Caspian was also the general contractor for the construction of the Canada Post mail processing center near James Armstrong Richardson International Airport. This project was completed in 2010.
In its filing in court on May 27, the City said it wanted McCaine to explain how it happened that it owed Caspian $ 160,000 that the invoices show were associated with the mail processing center.
How it happened and who organized itGabrielle Lisi asked.
Both the police headquarters and the mail processing center are being investigated for fraud by the Royal Canadian Mounted Police. These investigations, which lasted 5 years, were completed in December 2019 without any charges being filed.
According to court documents, last month McCaine’s attorney advised the city that he sought adjournment regarding the city’s request for documents on May 4.
The City responded by email that it would object to any delay.
Your client has been aware of the City’s concerns and requests for documents since September 2021Gabrielle Lisi replied.
With information from Caroline Barghout and Joanne Levasseur
Radio Canada
Source: Radio-Canada
