RCMP investigate offer of secret commission to Winnipeg police HQ project director

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The RCMP investigation into Winnipeg’s police headquarters has expanded into allegations of a plan to offer a $600,000 secret commission to the project director responsible for looking after the city’s interests in the construction project.

Fraud in the construction project

In information presented to a judge in order to obtain financial records, the Mounties elaborate upon invoice-padding allegations against Caspian Construction owner Armik Babakhanians, the primary contractor for Winnipeg’s police headquarters project, which council approved at a price of $135 million in 2009 but has cost $214 million to date. RCMP Const. Christopher Haskins says in an affidavit submitted to a judge in February in order to obtain bank records:

“To date, police have identified that Armik used inflated and altered subtrade invoices and quotes to defraud the city of millions of dollars for work that was done at costs less than his fraudulent submitted costs. In addition to these frauds, police are investigating the use of a secret commission for the hiring of key project personnel.”

Read more at CBC News.

This article is summarized by Canadian Fraud News Inc.