Court documents filed by the RCMP allege the former CAO of the city of Winnipeg received payments related to construction of police headquarters.
The RCMP documents allege Phil Sheegl received a $200,000 cheque from a shell company set up by Caspian Construction and half of that was given to former mayor Sam Katz in the form of a cheque that was noted as a loan.
Mayor Brian Bowman said Thursday he is going to draft a motion urging the province to hold a public inquiry.
RCMP Sgt. Breanne Chanel alleges that Sheegl committed breach of trust by accepting $200,000 and showing favour to Caspian in the process of issuing contracts for the construction of the Winnipeg police headquarters.
No charges have been laid and none of the allegations has been proven in court.
Lawyer Robert Tapper, who is representing both Katz and Sheegl called the allegations "ill-informed," adding the payments had to do with a land deal between Katz, Sheegl and Caspian's owner, Armik Babakhanians, in Arizona, not the police headquarters.
Asked why the two would be doing business with someone bidding on a major city project, Tapper said it was "just the way things were happening."
Tapper also said the cheque to Katz was not a loan and said too many years have gone by for anyone to remember why that was noted on the cheque.
Manitoba Justice Minister and Attorney General Heather Stefanson said in a statement that it would be premature to comment on an on-going investigation.
RCMP began its investigation after the project went more than $75 million over budget. Previous RCMP court documents allege Caspian inflated invoices, defrauding the city of millions of dollars.
(CTV Winnipeg)
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