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The Optics of Inaction are Terrible for City Hall

Author: Todd MacKay 2017/01/30

Lawyers are paid to put the best possible spin on their client’s situation, but sometimes it’s tough.

“The optics are terrible,” said Robert Tapper, the lawyer representing former mayor Sam Katz and former city chief administrative officer Phil Sheegl, when CBC asked him about $200,000 paid to Mr. Sheegl by a construction company that got the bid to build the city police headquarters.

It’s important to note that nothing has been proven in court and those under investigation are entitled to the presumption of innocence.

Mr. Tapper insists that, despite terrible optics, his clients are not guilty. He portrays investigators as incompetent and inexplicably wonders whether the Mounties “see communists in every closet?” It remains to be seen whether those arguments will be convincing.

In the meantime, here are some key points.

City council approved a price tag of $135 million for the new police headquarters. Caspian Construction got the contract. Massive overruns drove the price up to $214 million.

Now there’s a new twist. Caspian paid Mr. Sheegl $200,000. Then Mr. Sheegl gave Mr. Katz. $100,000.

The RCMP allege the payments are linked to the police headquarters contract. Mr. Tapper says Caspian gave Mr. Sheegl $200,000 for unrelated real estate deal. He also says Mr. Sheegl can’t remember why he gave Mr. Katz $100,000. The legal system will work out the details, but, on one point, there is consensus: “The optics are terrible.”

Mayor Brian Bowman is now asking for the obvious: a public inquiry. The brightest possible light is needed to illuminate the darkest corners of this scandal. And all of those responsible, criminal or otherwise, must be exposed and held accountable.

But even a full public enquiry is not enough. City hall must take action to prevent future scandals. Thus far, it has done virtually nothing.

Despite RCMP investigations leading to damning allegations; and, despite numerous scathing audits with even more numerous recommendations for concrete change – city hall remains almost completely stalled in a wait-and-see approach to strengthen tattered ethical safeguards.

In fact, one of the only recent ethical improvements is the new requirement for the mayor to disclose expenses. It’s a practice that’s been routine for city councillors for some time. It’s standard procedure for many governments. Nevertheless, it’s a move in the right direction and the mayor deserves credit for moving on it.

But there are other stunningly obvious changes that remain unmade.

At the very beginning of the police headquarters scandal, two whistleblowers came to the Canadian Taxpayers Federation with serious concerns. Both were put in contact with city police. City police only interviewed one of them. Yet, when the RCMP took over the investigation, both were interviewed and their revelations provided part of the justification for key search warrants. (Photo -- Winnipeg City Hall Credit: richard winchell/Flickr/Creative Commons)

The next time an issue arises with any connection to the Winnipeg police, city hall will be taking a significant risk if it has the city force investigate. This is not necessarily a criticism of the city’s women and men in uniform – these are no-win situations for them. It should be standard policy to bring in an outside force when questions are connected to the city police.

Then there’s the question of city decision-makers doing business with companies that are doing business with the city. That kind of thing at very least looks terrible. Yet, the mayor and council have made no significant efforts to prevent such dealings. If anyone at city hall is involved in a future business deal that raises even the slightest odor, they can now expect no forgiveness from taxpayers.

The optics are terrible for the current scandal and the optics of inaction are terrible for the current mayor and council.


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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