NDP asks auditor general to probe failed IT project at Manitoba Public Insurance
The NDP government has asked the provincial auditor general to probe Project Nova, the doomed technology project undertaken by Manitoba Public Insurance.
In a letter to auditor general Tyson Shtykalo, which was obtained by the Free Press, Finance Minister Adrien Sala stated that after spending $165 million on Nova, most of the promised features — including full online access for Autopac customers — remain unfulfilled.
Manitoba auditor general Tyson Shtykalo. (File)
Manitoba auditor general Tyson Shtykalo. (File)
Sala stated in his letter that an internal government review identified a number of 'concerns' about MPI's management of Nova.
'A review by Treasury Board Secretariat identified concerns about the selection of the software and the system integrator, terms of the vendor contract and irregularities in contract practices,' Sala wrote. 'In addition, MPI is expected to continue paying software licences that will not be used in the future years.'
If Shtykalo decides to do a deep dive on Nova, he will be examining one of the most costly and controversial projects undertaken by a Crown corporation.
First announced in 2020 at a cost of $107 million, Nova was supposed to allow Autopac and commercial customers to renew or amend insurance policies and driver's licences online while providing connections between MPI and repair shops to speed up claims processing.
All of these new features, former MPI CEO Eric Herbelin said, would be offered within three years.
However, in less than 24 months the cost of the project had risen to $290 million and the timeline was extended to five years. At the same time, concerns arose about costly untendered management contracts and the hiring of hundreds of additional staff in contravention of a government-wide hiring freeze.
In the spring of 2023, the board of MPI fired Herbelin after an internal performance review.
In March, current CEO Satvir Jatana announced the total price tag to complete Nova had risen to $435 million, or 50 per cent more than the previous estimate. As a result, Jatana said all work on Nova had been terminated. In May, MPI disabled one of the few parts of Nova that had become operational because it wasn't functioning properly.
JOHN WOODS / FREE PRESS FILES
In March, CEO of Manitoba Public Insurance Satvir Jatana said all work on Nova had been terminated.
JOHN WOODS / FREE PRESS FILES
In March, CEO of Manitoba Public Insurance Satvir Jatana said all work on Nova had been terminated.
Jatana and other senior MPI officials will confirm the audit and discuss its consequences at a media event on Thursday.
In the letter, Sala noted the treasury board review concluded that of the $165 million spent to date, only '$46.5 million of value was derived from the project.' The letter did not elaborate on which parts of Nova were up and running.
The idea of having the auditor general examine Nova was raised last month by the Consumers' Association of Canada. On May 21, the Manitoba branch of the association wrote to Shtykalo asking that he undertake an audit 'to prevent repetition of past mistakes by MPI and other public institutions and to complement the Public Utilities Board's protection of Manitobans' interests in setting auto insurance rates.'
The association had previously criticized MPI for using reserve funds normally dedicated to lowering Autopac rates to help pay for Nova cost overruns.
The request for a full audit was made under Section 16 of the Auditor General Act, which states that the auditor general may, by request from the minister of finance or lieutenant governor in council, 'examine and audit the accounts of a government organization, recipient of public money or other person or entity that in any way receives, pays or accounts for public money.'
The act says the auditor general 'is not obliged to do so if he or she is of the opinion that it would interfere with the primary responsibilities of the auditor general.'
If an audit is undertaken, findings will be reported to the minister who requested the review and to the minister responsible for 'any government organization concerned.' If the auditor finds it to be in the public interest, a report can be submitted to the legislative assembly no later than 14 days after it is provided to the minister responsible for the government entity.
The office of the auditor general not only reviews government financial accounts on an annual basis, it is also empowered to examine the finances and operations of any entity operated and funded by the province. Although unusual, it is not unprecedented for the auditor general to delve into the activities of a government entity or Crown corporation at the request of a government minister or MLA.
In 2021, Shtayko investigated allegations made by the NDP, which was in opposition at the time, that former premier Brian Pallister had interfered with the management of Manitoba Hydro. However, no report was produced from that probe.
dan.lett@freepress.mb.ca
Dan LettColumnist
Dan Lett is a columnist for the Free Press, providing opinion and commentary on politics in Winnipeg and beyond. Born and raised in Toronto, Dan joined the Free Press in 1986. Read more about Dan.
Dan's columns are built on facts and reactions, but offer his personal views through arguments and analysis. The Free Press' editing team reviews Dan's columns before they are posted online or published in print — part of the our tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates.
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.
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Globe and Mail
2 days ago
- Globe and Mail
MPI Shares WEC 2025 Highlights, Announces Strategic Growth and New Offerings at Annual Press Conference
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The organization reaches its members through more than 40,000 chapter events, 14,000 MPI Academy class participants, digital platforms, publishing, social channels, and in-person gatherings. New Global Partnerships MPI continues to expand its reach in Latin America, and this is the fastest growing region. Over the past five years in Latin America, our community has grown more than 50% and we have 9 chapters and clubs in the region. MPI is partnering with FIEXPO Latin America and WMF Brave Meetings to deliver education and meet-ups. MPI is pleased to welcome 104 international attendees to WEC, including 59 from Canada, 24 from EMEA and APAC and 21 from Latin America. Strong Financial Outlook MPI remains on a solid financial trajectory, showing continued year-over-year improvement. 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These activities include an MPI-hosted silent auction, a pickleball event hosted by Visit Seattle and Chicken 'N Pickle, and a live auction at the Presidents Dinner. The highlight of the fundraising efforts is the Rendezvous event, sponsored by Explore St. Louis. Collectively, these events are forecasted to raise more than $200,000, underscoring the community's strong support for MPIF's mission and future endeavors. MPI Events Updates: Rachel Benedick Upcoming MPI signature events include: theEVENT in Fredericton, Canada (Sept. 7-9, 2025) EMEC 2026 in Barcelona, Spain (Feb. 21–24, 2026) WEC 2026 in San Antonio, TX (June 2–4, 2026) WEC 2027 in Las Vegas, NV (June 2027) WEC 2028 in Denver, CO (June 2028) WEC 2029 in Anaheim, CA (June 2029) WEC 2030 in Tampa Bay, FL (June 2030) Attachment WEC St. Louis
Winnipeg Free Press
11-06-2025
- Winnipeg Free Press
Manitoba to announce tax extension for wildfire-affected businesses
Voluntary tax deferrals for businesses impacted by wildfires will be announced by the province Wednesday, the Free Press has learned. A source confirmed late Tuesday that the government will offer optional deferrals of the retail sales tax and payroll tax (the health and post-secondary education tax levy) to help businesses affected by the unprecedented emergency that has forced 21,000 Manitobans to flee 27 communities. A similar measure was announced by the province in March in response to U.S. tariffs, with such deferrals available from February through July. MIKE DEAL / FREE PRESS FILES Manitoba Finance Minister Adrien Sala. Details of the program related to wildfires will be made public Wednesday. Meanwhile, Manitoba businesses dealing with the fallout from an early, raging fire season have been waiting for the province to say if and how it will provide any government support. 'We have been hearing a lot of concern about the level of uncertainty — especially from tourism operators who are fearful they will miss out on the entire 2025 season,' said Canadian Federation of Independent Business spokesperson Brianna Solberg. She wrote to Finance Minister Adrien Sala on June 2 asking if the province would consider any specific cost relief or recovery measures for impacted small businesses. Flexibility on provincial tax and fee payments and remittances for affected businesses — such as retail and payroll tax deferrals — was one of the requests made in the letter. It also asked for emergency financial assistance or recovery grants and sought assurances that wildfire-impacted small businesses are eligible for Disaster Financial Assistance. It also requested co-ordination with federal counterparts to ensure Manitoba businesses are eligible for any national wildfire relief programs. Solberg said Tuesday she had yet to receive a response. Sala wouldn't talk about specific supports for businesses when brought up by the Free Press. 'Right now, the focus continues to be on keeping people safe and supporting individuals who've been impacted by the wildfires,' the minister said Tuesday. Sala noted there is $50 million in this year's budget for emergency expenditures and 'a number of relevant departments' have funding available. A separate budget for contingencies is $38.6 million. MIKE DEAL / FREE PRESS FILES Transportation and Infrastructure Minister Lisa Naylor. 'This wildfire season has been worse than many in recent memory, so we are seeing steady use of our existing budget lines to help respond to these challenges,' the minister said. He said the government would have a better idea about the cost of this wildfire season in September. 'It's still early days. I can say that I think we budgeted accordingly and have the resources needed to make sure that we can do what we need to do to take care of Manitobans during this challenging time.' Despite the impact of U.S. tariffs and provincial wildfires hurting the bottom line, Sala said the province still aims to balance the books in his first term. 'We're still committed to balancing the budget,' Sala said. The leader of the Progressive Conservatives said the response from the provincial government was lacking. 'They can be committed all they want, but we all are clearly seeing that the NDP are saying whatever they have to say and not doing the hard work behind the scenes,' Obby Khan said Tuesday. Weekday Mornings A quick glance at the news for the upcoming day. He pointed to Lisa Naylor, the minister responsible for the Emergency Management Organization, who said Manitobans hosting conventions or planning family trips should postpone them until later this summer to ensure there are enough hotel spaces for evacuees. 'Dozens of businesses have called me today, and text-messaged me that this government seems to make announcements and policies without doing their proper due diligence and consultation,' Khan said. 'It seems like they haven't spoken to many businesses, many industry leaders and it's evident with the minister coming out and asking people to reconsider or forego their travel to Manitoba when many of these operators really rely on this tourism and summer revenue and some of them are nowhere near the fires.' MIKAELA MACKENZIE / FREE PRESS FILES Progressive Conservative leader Obby Khan. The president and CEO of the Manitoba Chambers of Commerce said Naylor's plea took some by surprise. 'I think that the government is trying to do the best they can in the current situation,' Chuck Davidson said Tuesday. 'Obviously with the wildfire situation and the number of people that have been evacuated… it's trying to do everything possible to make sure that there's accommodation.' At the same time, tourism operators can't afford to lose guests, Davidson said. 'Some of these businesses are going to need those additional revenues to make sure that they can continue to operate moving forward.' Naylor said Tuesday that the province is housing evacuees in 68 hotels and motels in 14 communities across the province. 'We're looking everywhere for options if they're needed,' Naylor said. 'We're really at the beginning of the wildfire season. We don't know how this is going to go, and we don't know what's going to happen next… So we are trying to keep hotel rooms and motel rooms available as much as possible for evacuees.' Carol SandersLegislature reporter Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol. Every piece of reporting Carol produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. 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. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Winnipeg Free Press
10-06-2025
- Winnipeg Free Press
Unresolved questions require independent commission
Opinion Manitoba's ethics commissioner, Jeffrey Schnoor, recently released a report in which he concluded that former Progressive Conservative premier Heather Stefanson and two of her former cabinet ministers violated the province's conflict-of-interest laws after losing the 2023 election. They were accused of breaching the rules in an effort to approve the controversial Sio Silica sand mine during the short 'caretaker period' before the new NDP government was sworn in. Schnoor found that their actions 'lacked ethical and constitutional legitimacy,' but failed to identify what motivated them to act so recklessly. He says he found no evidence that any of the them acted for personal benefit but, if that wasn't the reason, why did they do it? MIKAELA MACKENZIE / WINNIPEG FREE PRESS Then-premier Heather Stefanson and finance minister Cliff Cullen announce the 2023 budget to media. Columnist Deveryn Ross says it's time to have an independent commission examine PC spending decisions. That's just one of many serious questions still swirling around the former government. Last week, Finance Minister Adrien Sala asked auditor general Tyson Shtykalo to investigate what went wrong with Manitoba Public Insurance's Project Nova technology project. MPI abandoned the program two months ago after a review estimated that total project costs had soared from $107 million to $435 million. The project was initially justified as an upgrade of MPI's digital capabilities, which would enable Manitobans to renew or amend their auto insurance and driver's licences online. It would also provide 'seamless connectivity' between MPI and repair shops. That was the hope back in 2020. Five years later, however, MPI Minister Matt Wiebe describes the program as a 'waste of taxpayers' money.' Where did all that money go, and why did MPI keep spending it? In April, the Kinew government asked Shtykalo to investigate an (almost) $100-million taxpayer-funded contract to build daycare facilities throughout the province. It alleges that the project, in which the province partnered with a company named JohnQ Public Inc., 'may not have followed normal provincial or municipal procurement practices.' Specifically, the government claims the contract enabled the previous government to funnel $2.8 million to Boom Done Next, a company owned by Marni Larkin. Larkin was the campaign manager for the Tories' 2023 doomed re-election campaign. How does a company earn almost $3 million on such a project? Two weeks ago, a CBC report revealed that the previous government gave an $18 million grant to JohnQ Public days before the 2023 provincial election was called. There was no public announcement of the funding, which was reportedly for a large land purchase in the RM of Ritchot to develop a proposed 'Winnipeg regional rail port.' Why the secrecy and rushed timing of the grant? In February, at a debate between PC Party leadership candidates Obby Khan and Wally Daudrich, Kahn alleged that Daudrich was the party's top donor for 12 years and accused him of receiving 'licensing permits up north under the table' from the previous government. Daudrich's company, Lazy Bear Lodge and Expeditions, first received approvals to operate off-road vehicle tours near Churchill in 2004. The total number of permits for all tour operators in the coastal plain of the Churchill Wildlife Management Area was limited to 18 between 1984 and 2020. Five years ago, however, the former Tory government reportedly approved two additional permits, both of which were awarded to Lazy Bear. Did Khan have inside knowledge that permits were improperly issued to Daudrich's company, or was his accusation simply bluster in the heat of the moment? There is no evidence that anybody acted improperly in these instances, let alone illegally, but there are many questions and few answers. Weekday Evenings Today's must-read stories and a roundup of the day's headlines, delivered every evening. The Kinew government and many Manitobans are counting on the auditor general to expose and explain the questionable conduct of the previous government, but their hopes may be overly optimistic. That's because Shtykalo has significant discretion as to which matters he chooses to investigate, and his office has limited resources. Even if he decides to review the issues referred to him, more than a year could pass before any reports are issued. That's neither good enough nor fast enough. The better, more efficient course of action is for the government to appoint an independent commissioner to investigate the many unresolved issues, and to give that commissioner the power to compel testimony and gather evidence if necessary. Manitobans deserve to know the truth. An independent commission is the best path to those answers. Deveryn Ross is a political commentator living in Brandon. deverynrossletters@ X: @deverynross
