Bribery Allegations ‘crushing,’ Former City Of Winnipeg Cao Tells Inquiry - Beritaja

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The Winnipeg Police Headquarters Inquiry continued Thursday, proceeding from erstwhile City of Winnipeg CAO Phil Sheegl and Caspian Projects Inc. proprietor Armik Babakhanians.

The enquiry seeks to understand the mismanagement of the $214 cardinal redevelopment of the downtown Canada Post building into the existent Winnipeg Police Service Headquarters.

Phil Sheegl told the Winnipeg Police Headquarters Inquiry that the RCMP investigation and civilian tribunal lawsuit pursuing his arguable clip arsenic City CAO were “crushing,” and called the past 16 years “an affectional rollercoaster.”

“I americium truthful embarrassed arsenic a quality being, arsenic a businessman,” he said.

Sheegl described an particularly difficult play successful his life, opening successful 2018, arsenic news of his business dealings pinch erstwhile politician Sam Katz and Caspian Construction president Armik Babakhanians made headlines.

A 2022 civilian lawsuit recovered Sheegl accepted a bribe from Babakhanians successful relationship pinch the Winnipeg Police Headquarters redevelopment that went overbudget by $79 million.

“I’m a large boy,” he said. “I could return it, and I could woody pinch it. But the repercussions and the ramifications and the feelings that this has put connected my family is not deserved by them.

“It’s been really difficult complete the past 16 years to person the past sanction Sheegl.”

The time began pinch Sheegl’s counsel, Richard Wolson, asking about the worth of the acre of Arizona onshore Sheegl and erstwhile politician Sam Katz sold to Babakhanians for $327,000 successful 2011.

Sheegl and his business partners, which included Katz, purchased the onshore successful 2005, arsenic improvement successful the area was “getting disconnected the ground.” Sheegl described the area known arsenic Tartesso arsenic a “master planned community” and likened it to Sage Creek successful Winnipeg.

The enquiry heard the worth of the onshore accrued importantly arsenic a caller freeway spurred business improvement successful the area.

Sheegl was asked about an affidavit successful which he antecedently stated the Tartesso onshore was weighted astatine $47,000 per acre, importantly little than a 2008 appraisal weighted it. Sheegl told the enquiry he had made an correction successful the affidavit and that it was worthy more.

“I person thing to opportunity different than the authorities of mind I was in,” he said. “It’s a very large correction to make.”

Sheegl said he felt he was “social force number one” astatine the clip and that he felt he was being pushed retired of the city, but couldn’t time off owed to family reasons.

He besides described really his employment pinch the City of Winnipeg was the first clip he’d managed aggregate building projects astatine once, having worked successful existent property finance for much than 20 years prior.

In his closing statement, Sheegl defended erstwhile politician Sam Katz, saying he was treated unfairly.

“I return awesome offence to the accusations that were made and that were ruled by the courts,” he said.

“The things that Mr. Katz has done for this metropolis earlier being mayor, bringing successful baseball, bringing successful concerts… And past astatine the end, that personification would person the… disrespect aliases audacity to overgarment him pinch this picture, is awful.”

Sheegl testified for 2 and a half days. Upon Commissioner Garth Smorang telling Sheegl he was free to go, Sheegl fto retired a celebratory cheer.

Armik Babakhanians began his grounds successful the afternoon. The enquiry heard he was calved successful Armenia and immigrated to Canada successful 1981. He started what is now Caspian Projects Inc. successful 1984.

Commission counsel Heather Leonoff questioned Babakhanians about his bid connected the project, which was by acold the lowest of the 4 offers connected the Request for Proposals, asking if he knew his bid was unrealistic.

“You could lowball a house, but this calibre of project? No,” he said.

Babakhanians was besides questioned about an email he sent himself pursuing a speech pinch Sheegl, which stated Sheegl would get “approval for 126m” and that he thought Sheegl “wanted 2 + 2 for sam and phil but the remainder for us.” Babakhanians told Leonoff he didn’t callback what “2 + 2” meant, and that it came up successful the speech and added it to the note.

Leonoff besides asked if the $327,000 he paid to Sheegl had thing to do pinch his successful bid for the WPS office project.

“I activity difficult enough, I don’t person to salary group to work,” he said.

Babakhanians’s grounds continues Friday.

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