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
B.C. seeks ban on using drugs in 'all public spaces,' shifting approach to decriminalization
The B.C. government is moving to have drug use banned in 'all public spaces,' marking a major shift in the province's approach to decriminalization.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Trump's lawyers try to discredit testimony of prosecution's first witness in hush money trial
Donald Trump's defence team attacked the credibility Friday of the prosecution's first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican's 2016 presidential campaign.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Air traveller complaints to Canadian Transportation Agency hit new high
The Canadian Transportation Agency has hit a record high of more than 71,000 complaints in a backlog. The quasi-judicial regulator and tribunal tasked with settling disputes between customers and the airlines says the backlog is growing because the number of incoming complaints keeps increasing.
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
76ers All-Star centre Joel Embiid says he has Bell's palsy
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
U.S. flight attendant indicted in attempt to record teen girl in airplane bathroom
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.