RCMP allege former Winnipeg CAO Phil Sheegl received payments related to the police headquarters project and that he appeared to share some of the money with former Mayor Sam Katz.

In reaction to the latest accusations, Mayor Brian Bowman announced he will draft a motion urging the province to hold a public inquiry.

In court documents filed by the Mounties, it’s alleged Sheegl received a $200,000 cheque from a shell company set up by Caspian Construction. The documents say half of that amount, $100,000, was given to Sam Katz in the form of a cheque that was noted as a loan.

RCMP said the payment to Sheegl, through his company FSS, was a secret commission as compensation for helping Caspian secure the construction bid on the police station.

READ MORE: Another Caspian project being investigated by police

“I believe that in accepting payment in the amount of $200,000 to FSS, and showing favour to Caspian in the process of issuing contracts associated to the WPS HQ construction project, Sheegl committed breach of trust,” said RCMP Sgt. Breanne Chanel

But the lawyer representing both Katz and Sheegl called the allegations “ill informed” and “absolute garbage.”

Robert Tapper said the payments had to do with a land deal between Katz, Sheegl and Caspian’s owner, Armik Babakhanians, in Arizona, not the police headquarters.

Asked why the two would be doing business with someone bidding on a major city project, Tapper replied it was “just the way things were happening.”

READ MORE: Bowman not ruling out review of police HQ project after RCMP investigation

Tapper also said the cheque to Katz was not a loan and said too many years have gone by for anyone to remember why that was noted on the cheque.

Mayor Bowman called the accusations serious, disturbing and distressing. Bowman said he is angered by the allegations and said all Winnipeggers should feel the same way.

Manitoba Justice Minister and Attorney General Heather Stefanson released a statement to CTV News:

"While our government understands the concerns raised by the Mayor of Winnipeg, it would be premature for the Attorney General of Manitoba to comment on an issue that remains under active criminal investigation. This is vital to ensure the integrity of the process‎."

An RCMP investigation was called for after the project went more than $75 million over budget. Previous RCMP court documents allege Caspian inflated invoices, defrauding the city of millions of dollars.

No charges have been laid and the allegations have not been tested in court.