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![\"RUTH](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/02\/3991217_web1_260217-Sheegl-court1-.jpg\")
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RUTH BONNEVILLE \/ FREE PRESS<\/p>\n
Phil Sheegl\u2019s testimony marks the first time he has spoken publicly about the headquarters project since leaving city hall in 2013.<\/p>\n
\u201cI completely acknowledge today that it was a conflict. At the time, I did not realize,\u201d Sheegl told inquiry counsel Heather Leonoff Tuesday.<\/p>\n
Sheegl\u2019s testimony marks the first time he has spoken publicly about the headquarters project since leaving city hall in 2013. He is the only witness slated to speak Wednesday, and began the morning fielding more questions from Leonoff.<\/p>\n
She has submitted dozens of emails exchanged between Babakhanians and Sheegl as evidence.<\/p>\n
The men were in frequent contact while Caspian was bidding on and after securing the headquarters contract. Some of those messages were sent to Sheegl\u2019s city email address, while others were sent to his private account.<\/p>\n
Sheegl has said he grew frustrated with Babakhanians, who frequently complained about other people and companies involved in the project.<\/p>\n
\u201cIt took a lot of time and a lot of effort from a lot of people, at the city, I mean, to respond to these emails,\u201d Sheegl said Wednesday. \u201cIt becomes a very, very time consuming event.\u201d<\/p>\n
In one exchange, Babakhanians complained about accounting practices he was expected to follow during the project.<\/p>\n
Caspian and the city had negotiated a guaranteed maximum price of $137 million in the construction contract.<\/p>\n
\u201cNow at the last minute, we are being forced to provide extremely redundant non-industry standard accounting practice for this application. The whole purpose of rolling this into a (guaranteed maximum price) is so that we can go away, build the project and hand you the keys,\u201d Babakhanians wrote.<\/p>\n
Leonoff has repeatedly asked Sheegl whether he advised Babakhanians to \u201clow ball\u201d estimated costs while bidding on the construction contract.<\/p>\n
Sheegl said they never discussed anything along those lines.<\/p>\n
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The inquiry panel previously heard the project encountered price overruns, in part, due to change orders from the Winnipeg Police Service.<\/p>\n
Despite some concerns, Sheegl said he and others at the city felt Babakhanians was a competent contractor and Caspian was the right company to complete the project.<\/p>\n
\u201cWe\u2019re not looking at this with questioning eyes, or through that lens,\u201d Sheegl said.<\/p>\n
More to come<\/p>\n
tyler.searle@freepress.mb.ca<\/p>\n
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Tyler Searle Tyler Searle is a multimedia producer who writes for the Free Press\u2019s city desk. A graduate of Red River College Polytechnic\u2019s creative communications program, he wrote for the Stonewall Teulon Tribune, Selkirk Record and Express Weekly News before joining the paper in 2022.\u00a0Read more about Tyler<\/a>.<\/p>\n Every piece of reporting Tyler produces is reviewed by an editing team before it is posted online or published in print \u2014 part of the Free Press\u2018s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press\u2019s history and mandate<\/a>, and learn how our newsroom operates<\/a>.<\/p>\n Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber<\/a>.<\/p>\n Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.<\/p>\n \t\t
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