Contractors accused of rigging Manitoba Housing bids after years-long investigation want charges stayed
CBC
Two anonymous letters first tipped the Manitoba government off to possible collusion by contractors vying for dozens of public housing projects more than a decade ago, according to search warrant documents — but charges against the people accused could now be stayed because the process has taken so long.
The search warrant documents, obtained by CBC, shed light on years-long investigations, which led to five Westman-area contractors being charged with federal conspiracy offences in 2022.
The tips prompted the Manitoba Housing and Renewal Corporation to order an external review in 2015 of the regional office's tender policies and practices.
That review, which was shared with the Competition Bureau, unearthed surprising comments by contractors and led the bureau to discover "out of whack" bids, including one that was nearly double the province's estimated cost for the renovation project.
The Competition Bureau, an independent law enforcement agency focused on ensuring market competition, then spent about seven years investigating the bids.
The bureau alleges five contractors — Geoff Gregoire, Guy Pringle, James Kauk, Ryan Lamont and Doug Gunnarson — manipulated at least 89 contracts awarded by Manitoba Housing from December 2011 to February 2016. The value of the contracts was estimated at $4.5 million.
The five were charged with conspiracy to commit fraud over $5,000 under the Criminal Code and conspiring to allocate contracts under the Competition Act.
Lawyers representing the contractors did not respond to a request for comment prior to publication.
In February 2015, Manitoba Housing hired the consulting firm PricewaterhouseCoopers to conduct an external review, after the department identified 33 concerning contract awards involving the Brandon regional office's operations manager and local contractors.
The awards could indicate "collusion, bid-rigging and/or payment of secret commissions," housing officials told the consulting firm, according to the 2015 review filed as part of the search warrant.
The operations manager was terminated with cause in the midst of the review, according to the search warrant documents, and was never charged.
One incident flagged in the review was an email between the operations manager, who was in charge of renewal projects for publicly owned housing in Brandon, and Geoff Gregoire, one of the contractors accused.
In the September 2014 email, Gregoire questioned why he won a recent bid, telling the operations manager, "I don't think this one is mine." Then he said he didn't think his company was "supposed to win," but said "let me figure it out."
After the review wrapped in late 2015, PricewaterhouseCoopers and Manitoba Housing contacted the Competition Bureau to file a complaint about suspected "anti-competitive conduct" in Brandon.
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Two anonymous letters first tipped the Manitoba government off to possible collusion by contractors vying for dozens of public housing projects more than a decade ago, according to search warrant documents — but charges against the people accused could now be stayed because the process has taken so long.
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