{"id":11675087,"date":"2026-02-19T19:12:43","date_gmt":"2026-02-20T00:12:43","guid":{"rendered":"https:\/\/globalnews.ca\/?p=11675087"},"modified":"2026-02-19T19:43:32","modified_gmt":"2026-02-20T00:43:32","slug":"bribery-allegations-crushing-former-city-of-winnipeg-cao-tells-inquiry","status":"publish","type":"post","link":"https:\/\/globalnews.ca\/news\/11675087\/bribery-allegations-crushing-former-city-of-winnipeg-cao-tells-inquiry\/","title":{"rendered":"Bribery allegations ‘crushing,’ former City of Winnipeg CAO tells inquiry"},"content":{"rendered":"

The Winnipeg Police Headquarters Inquiry continued Thursday, hearing from former City of Winnipeg CAO Phil Sheegl<\/a> and Caspian Projects Inc. owner Armik Babakhanians.<\/p>\n

The inquiry seeks to understand the mismanagement of the $214 million redevelopment of the downtown Canada Post building into the current Winnipeg Police Service Headquarters.<\/p>\n\t

\n\t\t\t\t<\/span>\n\t\t\t\t\t\t

\n\t\t\t\tSheegl\t\t\t<\/h2>\n\t\t\t\t\t\t<\/div>\n\t\n

Phil Sheegl told the Winnipeg Police Headquarters Inquiry that the RCMP investigation and civil court case following his controversial time as City CAO were \u201ccrushing,\u201d and called the past 16 years \u201can emotional rollercoaster.\u201d<\/p>\n

\u201cI am so embarrassed as a human being, as a businessman,\u201d he said.<\/p>\n

Sheegl described an especially difficult period in his life, beginning in 2018, as news of his business dealings with former mayor Sam Katz and Caspian Construction president Armik Babakhanians made headlines.<\/p>\n

A 2022 civil case found Sheegl accepted a bribe from Babakhanians in connection with the Winnipeg Police Headquarters redevelopment that went overbudget by $79 million.<\/p>\n

\u201cI’m a big boy,\u201d he said. \u201cI can take it, and I can deal with it. But the repercussions and the ramifications and the feelings that this has put on my family is not deserved by them.<\/p>\n

\u201cIt\u2019s been really hard over the last 16 years to have the last name Sheegl.\u201d<\/p>\n\t\t\t\t\t\t\n\t \t\n\t\t\t\t\t<\/span>\n\t\t\t\t\t\n\t \t<\/span>\n\t\t\t<\/a>\n\t\t\t\t\t\n

The day began with Sheegl\u2019s counsel, Richard Wolson, asking about the value of the acre of Arizona land Sheegl and former mayor Sam Katz sold to Babakhanians for $327,000 in 2011.<\/p>\n

Sheegl and his business partners, which included Katz, purchased the land in 2005, as development in the area was \u201cgetting off the ground.\u201d Sheegl described the area known as Tartesso as a \u201cmaster planned community\u201d and likened it to Sage Creek in Winnipeg.<\/p>\n

The inquiry heard the value of the land increased significantly as a new freeway spurred industrial development in the area.<\/p>\n

Sheegl was asked about an affidavit in which he previously stated the Tartesso land was valued at $47,000 per acre, significantly less than a 2008 appraisal valued it. Sheegl told the inquiry he had made an error in the affidavit and that it was worth more.<\/p>\n

\u201cI have nothing to say other than the state of mind I was in,\u201d he said. \u201cIt\u2019s a very big mistake to make.\u201d<\/p>\n

Sheegl said he felt he was \u201csocial enemy number one\u201d at the time and that he felt he was being pushed out of the city, but couldn\u2019t leave due to family reasons.<\/p>\n

He also described how his employment with the City of Winnipeg was the first time he\u2019d managed multiple construction projects at once, having worked in real estate investment for more than 20 years prior.<\/p>\n

In his closing statement, Sheegl defended former mayor Sam Katz, saying he was treated unfairly.<\/p>\n

\u201cI take great offence to the accusations that were made and that were ruled by the courts,\u201d he said.<\/p>\n

\u201cThe things that Mr. Katz has done for this city before being mayor, bringing in baseball, bringing in concerts\u2026 And then at the end, that someone would have the\u2026 disrespect or audacity to paint him with this picture, is awful.\u201d<\/p>\n

Sheegl testified for two and a half days. Upon Commissioner Garth Smorang telling Sheegl he was free to go, Sheegl let out a celebratory cheer.<\/p>\n\t

\n\t\t\t\t<\/span>\n\t\t\t\t\t\t

\n\t\t\t\tBabakhanians\t\t\t<\/h2>\n\t\t\t\t\t\t<\/div>\n\t\n

Armik Babakhanians began his testimony in the afternoon. The inquiry heard he was born in Armenia and immigrated to Canada in 1981. He started what is now Caspian Projects Inc. in 1984.<\/p>\n

Commission counsel Heather Leonoff questioned Babakhanians about his bid on the project, which was by far the lowest of the four offers on the Request for Proposals, asking if he knew his bid was unrealistic.<\/p>\n

“You can lowball a house, but this calibre of project? No,” he said.<\/p>\n

Babakhanians was also questioned about an email he sent himself following a conversation with Sheegl, which stated Sheegl would get “approval for 126m” and that he thought Sheegl “wanted 2 + 2 for sam and phil but the rest for us.” Babakhanians told Leonoff he didn’t recall what “2 + 2” meant, and that it came up in the conversation and added it to the note.<\/p>\n

Leonoff also asked if the $327,000 he paid to Sheegl had anything to do with his successful bid for the WPS headquarters project.<\/p>\n

“I work hard enough, I don’t have to pay people to work,” he said.<\/p>\n

Babakhanians’s testimony continues Friday.<\/p>\n","protected":false},"excerpt":{"rendered":"

The inquiry seeks to understand the mismanagement of the $214 million redevelopment of the downtown Canada Post building into the current Winnipeg Police Service Headquarters.<\/p>","protected":false},"author":190094481,"featured_media":11671080,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2026-02-20T00:13:08Z","apple_news_api_id":"2a247993-f8d7-4bfc-ae78-5cf557bbc347","apple_news_api_modified_at":"2026-02-20T00:43:57Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAA==","apple_news_api_share_url":"https:\/\/apple.news\/AKiR5k_jXS_yueFz1V7vDRw","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[546387958,546387971,1417,1,398],"tags":[292044,81316301,1923116,546304155],"gnca-iab-tag":[700516391,700517309,700515611,700554831,700511890,700519955,700511479,700517719,700537359,700516325,700512677,700511537,700528488,700512287,700512016,700511599,700513212,700736482,700518073,700539585,700992616,700535334,700512372,700596704,700511951,700512401,700516027],"gnca-iab-category":[700511554,700511988,700511555],"coauthors":[700665778],"class_list":["post-11675087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crime","category-economy","category-money","category-news","category-politics","tag-bribery","tag-phil-sheegl","tag-sam-katz","tag-winnipeg-police-hq","gnca-regions-gnca-winnipeg","gnca-placement-global-contributor-post","gnca-iab-tag-acre","gnca-iab-tag-affidavit","gnca-iab-tag-arizona","gnca-iab-tag-armenia","gnca-iab-tag-baseball","gnca-iab-tag-bribery","gnca-iab-tag-canada","gnca-iab-tag-canada-post","gnca-iab-tag-chief-administrative-officer","gnca-iab-tag-controlled-access-highway","gnca-iab-tag-conversation","gnca-iab-tag-employment","gnca-iab-tag-error","gnca-iab-tag-investment","gnca-iab-tag-mayor","gnca-iab-tag-news","gnca-iab-tag-nothing","gnca-iab-tag-planned-community","gnca-iab-tag-real-estate","gnca-iab-tag-request-for-proposal","gnca-iab-tag-richard-wilson-painter","gnca-iab-tag-roller-coaster","gnca-iab-tag-royal-canadian-mounted-police","gnca-iab-tag-sam-katz","gnca-iab-tag-testimony","gnca-iab-tag-winnipeg","gnca-iab-tag-winnipeg-police-service","gnca-iab-category-law-and-government","gnca-iab-category-law-enforcement","gnca-iab-category-public-safety","gnca-radio-cjob"],"apple_news_notices":[],"parsely":{"version":"1.1.0","canonical_url":"https:\/\/globalnews.ca\/news\/11675087\/bribery-allegations-crushing-former-city-of-winnipeg-cao-tells-inquiry\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":[],"rendered":"","tracker_url":"https:\/\/cdn.parsely.com\/keys\/globalnews.ca\/p.js"},"jetpack_featured_media_url":"https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/d410844f981aa7d856eef417fd8074bbe581cc7d924e2e3778dbdc43b625c825.jpg?quality=65&strip=all","openmedia_bucket":"POLICE HQ INQUIRY FEB 19_9166062","gnca_regions":["Winnipeg"],"jetpack-related-posts":[{"id":8686850,"url":"https:\/\/globalnews.ca\/news\/8686850\/judge-rules-winnipeg-cao-phil-sheegl-accepted-bribe-city-owed\/","url_meta":{"origin":11675087,"position":0},"title":"Judge rules former Winnipeg CAO Phil Sheegl accepted $327K bribe and city owed $700K","author":"Brittany Greenslade","date":"March 16, 2022","format":false,"excerpt":"'The city has persuaded me on a balance of probabilities that the elements of bribery have been satisfied,' Chief Justice Glenn Joyal wrote in a 126-page decision.","rel":"","context":"In "Crime"","block_context":{"text":"Crime","link":"https:\/\/globalnews.ca\/crime\/"},"img":{"alt_text":"","src":"https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=350%2C200 1x, https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=525%2C300 1.5x, https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=700%2C400 2x"},"classes":[]},{"id":3208025,"url":"https:\/\/globalnews.ca\/news\/3208025\/rcmp-allegations-most-seriously-damaging-to-publics-trust-to-date-bowman\/","url_meta":{"origin":11675087,"position":1},"title":"RCMP allegations ‘Most seriously damaging to public’s trust to date’: Bowman","author":"taliaglobalnews","date":"January 26, 2017","format":false,"excerpt":"Mayor Brian Bowman announced Thursday he is working on a public inquiry to present to the province after court documents revealed allegations that former city CAO Phil Sheegl was paid $200,000 for helping Caspian Construction land the police headquarters project.","rel":"","context":"In "Canada"","block_context":{"text":"Canada","link":"https:\/\/globalnews.ca\/canada\/"},"img":{"alt_text":"","src":"https:\/\/globalnews.ca\/wp-content\/uploads\/2017\/01\/image113.jpg?quality=65&strip=all&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/globalnews.ca\/wp-content\/uploads\/2017\/01\/image113.jpg?quality=65&strip=all&resize=350%2C200 1x, https:\/\/globalnews.ca\/wp-content\/uploads\/2017\/01\/image113.jpg?quality=65&strip=all&resize=525%2C300 1.5x, https:\/\/globalnews.ca\/wp-content\/uploads\/2017\/01\/image113.jpg?quality=65&strip=all&resize=700%2C400 2x"},"classes":[]},{"id":11673057,"url":"https:\/\/globalnews.ca\/news\/11673057\/former-winnipeg-bureaucrat-money\/","url_meta":{"origin":11675087,"position":2},"title":"Former Winnipeg bureaucrat questioned at inquiry on money from contractor","author":"globalnewsdigital","date":"February 18, 2026","format":false,"excerpt":"A former Winnipeg chief administrative officer is facing tough questioning at a public inquiry examining payments linked to the over budget police headquarters project.","rel":"","context":"In "Canada"","block_context":{"text":"Canada","link":"https:\/\/globalnews.ca\/canada\/"},"img":{"alt_text":"","src":"https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/77244d7fae4f90afd0bb518193b1ad3ee0aab95ec2374f9c9832ad8d28028fdc.jpg?quality=65&strip=all&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/77244d7fae4f90afd0bb518193b1ad3ee0aab95ec2374f9c9832ad8d28028fdc.jpg?quality=65&strip=all&resize=350%2C200 1x, https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/77244d7fae4f90afd0bb518193b1ad3ee0aab95ec2374f9c9832ad8d28028fdc.jpg?quality=65&strip=all&resize=525%2C300 1.5x, https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/77244d7fae4f90afd0bb518193b1ad3ee0aab95ec2374f9c9832ad8d28028fdc.jpg?quality=65&strip=all&resize=700%2C400 2x"},"classes":[]},{"id":11603110,"url":"https:\/\/globalnews.ca\/news\/11603110\/former-cao-pays-1-15m-to-city-after-police-construction-corruption\/","url_meta":{"origin":11675087,"position":3},"title":"Former CAO pays city $1.15M after police HQ construction scandal","author":"Vasilios Bellos","date":"January 7, 2026","format":false,"excerpt":"The city alleged that Caspian Construction and dozens of others carried out a conspiracy to inflate prices and quotes to drive up the cost of the build.","rel":"","context":"In "News"","block_context":{"text":"News","link":"https:\/\/globalnews.ca\/news\/"},"img":{"alt_text":"","src":"https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=350%2C200 1x, https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=525%2C300 1.5x, https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=700%2C400 2x"},"classes":[]},{"id":918848,"url":"https:\/\/globalnews.ca\/news\/918848\/sheegl-says-hes-sworn-to-silence\/","url_meta":{"origin":11675087,"position":4},"title":"Sheegl says he’s sworn to silence","author":"Lauren McNabb","date":"October 22, 2013","format":false,"excerpt":"\"Sorry, I am bound by the terms of a confidentiality agreement and therefore have no comment,\" former chief administrative officer Phil Sheegl told Global News in an email.","rel":"","context":"In "Politics"","block_context":{"text":"Politics","link":"https:\/\/globalnews.ca\/politics\/"},"img":{"alt_text":"","src":"https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=350%2C200 1x, https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=525%2C300 1.5x, https:\/\/globalnews.ca\/wp-content\/uploads\/2013\/10\/phil-sheegl.jpg?quality=65&strip=all&resize=700%2C400 2x"},"classes":[]},{"id":11671188,"url":"https:\/\/globalnews.ca\/news\/11671188\/winnipeg-police-hq-inquiry-hears-from-former-top-city-official\/","url_meta":{"origin":11675087,"position":5},"title":"Winnipeg police HQ inquiry hears from former top city official","author":"globalnewsdigital","date":"February 17, 2026","format":false,"excerpt":"The project ran more than $70 million over budget by the time it was completed in 2016, and the inquiry is looking into what happened.","rel":"","context":"In "Canada"","block_context":{"text":"Canada","link":"https:\/\/globalnews.ca\/canada\/"},"img":{"alt_text":"","src":"https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/d410844f981aa7d856eef417fd8074bbe581cc7d924e2e3778dbdc43b625c825.jpg?quality=65&strip=all&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/d410844f981aa7d856eef417fd8074bbe581cc7d924e2e3778dbdc43b625c825.jpg?quality=65&strip=all&resize=350%2C200 1x, https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/d410844f981aa7d856eef417fd8074bbe581cc7d924e2e3778dbdc43b625c825.jpg?quality=65&strip=all&resize=525%2C300 1.5x, https:\/\/globalnews.ca\/wp-content\/uploads\/2026\/02\/d410844f981aa7d856eef417fd8074bbe581cc7d924e2e3778dbdc43b625c825.jpg?quality=65&strip=all&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/posts\/11675087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/users\/190094481"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/comments?post=11675087"}],"version-history":[{"count":3,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/posts\/11675087\/revisions"}],"predecessor-version":[{"id":11675182,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/posts\/11675087\/revisions\/11675182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/media\/11671080"}],"wp:attachment":[{"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/media?parent=11675087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/categories?post=11675087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/tags?post=11675087"},{"taxonomy":"gnca-iab-tag","embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/gnca-iab-tag?post=11675087"},{"taxonomy":"gnca-iab-category","embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/gnca-iab-category?post=11675087"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/globalnews.ca\/wp-json\/wp\/v2\/coauthors?post=11675087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}