A public inquiry is set to begin today on cost overruns and controversy linked to a building project led by the City of Winnipeg.

The inquiry, announced by the Manitoba government last year, is to examine the purchase and conversion of a former Canada Post building that became the new headquarters for the Winnipeg Police Service.

The project ran $79 million over its initial $135-million budget by the time it was completed in 2016.

In civil court, the city’s former chief administrative officer, Phil Sheegl, was found to have accepted a $327,000 bribe from a contractor.

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No criminal charges were laid and Sheegl argued the money was for an unrelated real estate deal in Arizona.

Sheegl appealed the civil finding but lost.

The Manitoba Court of Appeal said Sheegl’s actions amounted to “disgraceful, unethical behaviour by a public servant.”

Former mayor Sam Katz, who served from 2004 to 2014, is among the witnesses scheduled to testify later this week. Sheegl is set to appear next week.

Brian Bowman, who served as mayor after Katz, had called on the Manitoba government to launch the inquiry, saying the controversy over the building project threatened to damage public trust in city hall.

The province approved $2.3 million for the inquiry, which is set to run until June.

Garth Smorang, the lawyer appointed as inquiry commissioner, has said he doesn’t intend to retread ground previously covered by the courts.

The inquiry’s website says it has been divided into five sections, starting with background on the redevelopment project. The second phase, set for March, is titled “The Money Trail.”

This report by The Canadian Press was first published Feb. 10, 2026.

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