Manitoba Crown corporation explains departures of senior executives
Manitoba's Crown-owned vehicle insurance corporation offered more details Tuesday on recent turmoil that has seen the departure of senior executives and a big jump in the cost of technology upgrades.
Ward Keith, who took over as board chair of Manitoba Public Insurance this spring after his predecessor's resignation, explained last week's departure of the corporation's chief information and technology officer, Siddharta Parti.
Parti was living in Ontario and the corporation was paying his travel costs to Manitoba, Keith said.
"Based on an arrangement that was made between this individual and the former CEO, travel costs to and from Manitoba were charged back to the company. That was another reason why I found this not to be an acceptable arrangement," Keith said.
A corporation official later said Parti received a total of $19,021 in travel expenses over nine months, including commuting travel and business-related trips.
Parti was asked to relocate to Manitoba but chose last week to resign instead, Keith added. The Canadian Press was unable to reach Parti for comment.
That resignation came shortly after the departure of chief executive officer Eric Herbelin. MPI said last month Herbelin was dismissed by the board after a review of his workplace conduct.
Herbelin did not respond to an interview request. Keith offered few additional details Tuesday, other than to say the review covered more than just his interactions with employees.
"Based on the results of that investigation, the board met and determined that there was sufficient concern to terminate his employment with cause," Keith said.
Manitoba Public Insurance has faced questions over the last two years, mainly over a plan called Project Nova, aimed at upgrading its various technology platforms. The project includes plans to let the public buy automobile insurance online.
The forecast cost of the project has jumped from $106 million to $290 million. Its timeline has been extended to five years from three.
Keith said Tuesday the newer price tag includes $60 million in contingency funds and he is confident the project cost is now under control.
"To date, virtually none of that contingency has been utilized," he said.
The corporation has also faced controversy over plans it submitted to hire 420 people -- a 21 per cent increase from staff levels before the COVID-19 pandemic. Many new staff would be linked to Project Nova.
That prompted a warning from the Public Utilities Board, the provincial regulator, in January. The board said the hiring seemed imprudent and that Project Nova lacked adequate management control.
There were also questions about untendered contracts. Kelvin Goertzen, the minister responsible for MPI, cited that as one reason he ordered an external review of the corporation this spring.
That review is expected in December.
In the meantime, MPI is preparing to file its plans for the 2024-25 fiscal year with the utilities board. That plan is to include a freeze on its overall rate revenues, although some categories of motorists could see small increases or decreases, Keith said.
This report by The Canadian Press was first published June 6, 2023
CTVNews.ca Top Stories
Most of Canada to receive emergency alert test today
The federal government will test its capacity to issue emergency alerts today, with the exception of Ontario, where the test will take place on May 15.
'A huge difference': These adults born in the '90s partnered with their parents to buy homes in Ontario
An Ontario woman said it would have been impossible to buy a house without her mother – an anecdote that animates the fact that over 17 per cent of Canadian homeowners born in the ‘90s own their property with their parents, according to a new report.
OPINION No reunion between Prince Harry and the King signifies a setback for royal unity
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
How Drake and Kendrick Lamar's rap beef escalated within weeks
A long-simmering feud between hip-hop superstars Drake and Kendrick Lamar reached a boiling point in recent days as the pair traded increasingly personal insults on a succession of diss tracks. Here’s a quick overview of what’s behind the ongoing beef.
NEW For their protection, immigrants critical of China and India call for speedy passage of Canada's foreign interference legislation
Canadian immigrants threatened by hostile regimes are urging parliamentarians to quickly pass the 'Countering Foreign Interference Act' so they can feel safe living in their adopted home.
Ontario man devastated to learn $150,000 line of credit isn't insured after wife dies
An Ontario man found out that a line of credit he thought was insured actually isn't after his wife of 50 years died.
Spanish prosecutors recommend 2nd investigation into Shakira's taxes be thrown out
Spanish state prosecutors recommended Wednesday that an investigating judge shelve a probe into another alleged case of tax fraud by pop star Shakira.
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.