Court rules former Winnipeg CAO accepted $327K bribe, owes city up to $700K
CBC
A Manitoba court has ruled in favour of the City of Winnipeg's civil claim that former chief administrative officer Phil Sheegl accepted a bribe and breached his duty as a city officer by accepting $327,000 from the contractor who built the city's police headquarters.
In a 129-page decision issued Tuesday, Chief Justice Glenn Joyal of the Court of Queen's Bench granted the city's request for a summary judgment against Sheegl and his co-defendants under the torts of bribery and breach of fiduciary duty.
The city claimed Sheegl made up a land deal in Arizona with police headquarters contractor Armik Babakhanians of Caspian Construction.
The deal was fabricated to cover up a $327,200 payment Babakhanians made to Sheegl, the city alleged.
The city sought repayment of the $327,200, as well as $250,000 in severance paid to Sheegl when he left the city, along with $100,000 in punitive costs and legal costs.
Joyal awarded the city the severance, punitive and legal costs, and may yet award the city the $327,200, pending further legal submissions.
CBC News has sought comment from Sheegl and Babakhanians.
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