Winnipeg Free Press (Newspaper) - June 19, 2015, Winnipeg, Manitoba C M Y K PAGE A5
winnipegfreepress. com TOP NEWS WINNIPEG FREE PRESS, FRIDAY, JUNE 19, 2015 A 5
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W HY weren’t the alarm bells going
off for Premier Greg Selinger?
In the wake of revelations
Infrastructure Minister Steve Ashton
tried to improperly obtain a $ 5- million
untendered contract to buy Tiger Dam
portable floodfighting
equipment
to help Interlake
First Nations, this
has become the
pre- eminent question
surrounding
the premier.
On Wednesday,
the Free Press revealed
Ashton had
been the subject of
a conflict- of- interest
investigation by the Manitoba ombudsman.
Ashton has personal and political
connections to two parties involved in the
contract.
Selinger was out of town when the story
broke, but he did issue a statement that
said after the contract rose to the cabinet
level for discussion last October, he ordered
it be subjected to a full public tender.
On Thursday, Selinger elaborated. He
told the Free Press he was supporting a
proposal by Ashton to have the contract
reviewed by the ombudsman. “ There’s
lots of potential there for them to confirm
what really happened in terms of the
internal process,” Selinger said.
To be frank, it’s a little hard to believe
the premier really believes what he is
saying. Particularly his intimation he
personally does not know “ what really
happened.”
Senior government sources confirmed
Ashton and his cosy relationship with U. S./
International Flood Control Corp. — the
Calgary- based company that makes Tiger
Dam — had been a major source of concern
for political staff for several years.
The concern was based on the fact
IFCC, which received Manitoba contracts
worth at least $ 6 million, is represented
here by restaurant owner Peter Ginakes,
one of Ashton’s longtime friends and political
donors.
This was all well- known inside the NDP
government. As a result, it seems odd,
even improbable, Selinger was unaware
of the magnitude of the problem Ashton
was cooking up. In fact, the Ginakes-
Ashton relationship was only the tip of an
unethical iceberg lurking in this file.
The contract in question would have
seen $ 5 million in Tiger Dam equipment
made by U. S./ International Flood Control
Corp., acquired by the Interlake Tribal
Council to establish an emergency flood
operations centre. Spearheading the deal
was former Peguis First Nation chief Glen
Hudson.
Hudson and Ginakes were much more
than contractor and client. As well as owning
the rights to Tiger Dam in Manitoba,
Ginakes sits on the board of directors of
the Chief Peguis Investment Corp., an
agency of Peguis First Nation, which was
spearheading the purchase of Tiger Dam
equipment to stock an emergency floodfighting
centre.
Further complicating matters was the
fact sources confirmed Ashton had been
lobbying within government to grant
Peguis a casino licence as part of a partnership
with the Manitoba Jockey Club to
redevelop Assiniboia Downs.
In an interview, Ashton conceded he
has long supported the establishment of
additional aboriginal casinos.
All of this information was well- known
to Selinger’s senior staff and key cabinet
ministers who had fended off Ashton’s
bids to push more business to IFCC and
award Peguis a casino licence. “ Steve
was always trying to get us to buy Tiger
Dam,” one senior government source said.
“ It was a constant thing with him. And in
most instances, we were able to beat him
back because we always had the support
of the premier.”
The big question now with all this
knowledge within easy grasp, why has
Selinger not disciplined his minister for
trying to obtain an untendered contract?
Certainly, Selinger’s principal critics
within his own government believe the
premier wittingly approved of what Ashton
was doing when he wouldn’t kill the
contract proposal at an October cabinet
meeting.
Thursday night, a spokesman for the
premier’s office said the untendered Tiger
Dam contract first reached the Treasury
Board Oct. 6. It was not recommended for
approval.
That decision went on to a cabinet meeting
on Oct. 8, the spokesman said. At that
meeting, the premier decided not to approve
the Treasury Board recommendation
but did commit to studying Ashton’s
proposal a bit more. This may have been
interpreted by some at cabinet as tacit
support for the untendered contract. The
spokesman said, however, Selinger met
Oct. 9 with senior officials in Manitoba
Infrastructure and the Treasury Board
secretariat to discuss the contract. Selinger
decided at that meeting to send the
entire contract to a formal public tender,
the spokesman added.
Where does all this leave us? It is
increasingly clear that given Ashton’s
relationship to both the vendor and the
purchaser of the dam equipment, it was
inappropriate for him to be involved in the
deal at all, let alone acting as the agent to
secure an untendered contract. What is
unclear is why, having apparently made
the right decision to stop Ashton’s plan
for an untendered contract, Selinger did
not discipline his minister for potentially
putting the government in such a difficult
position.
Unfortunately, that is not going to be
something the ombudsman is going to
consider in any future investigation.
dan. lett@ freepress. mb. ca
DAN
LETT
Why did Selinger not discipline his minister?
CHRIS YOUNG / THE CANADIAN PRESS FILES
Premier Greg Selinger: does he really believe what he’s saying?
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