Auditor general to review MPI's failed Project Nova
Auditor general Tyson Shtykalo was asked last month by NDP Finance Minister Adrien Sala to investigate the now-scuttled project, which was originally estimated to cost $107 million but by the time MPI terminated it in March had grown to an estimated price tag of $435 million — of which $165 million had already been spent.
Satvir Jatana, MPI president and CEO, said in a statement on Wednesday: 'We have recently received news that the auditor general has accepted the request and will be moving forward with the audit. We are committed to working alongside the auditor and his team to complete this work.'
MIKAELA MACKENZIE / FREE PRESS FILES
The province's auditor general has agreed to investigate Manitoba Public Insurance's Project Nova.
Shtykalo could not be reached for comment.
In May, the Consumers' Association of Canada (Manitoba) wrote to the auditor general asking for such an audit.
The letter said it was needed '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.'
Last month, Sala wrote to the auditor general, saying an internal government review had found 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.'
Project Nova was announced in 2020 by the then-Tory government as a major computer upgrade by the Crown auto insurer, enabling both its Autopac and commercial customers to go online to renew or amend insurance policies and driver's licences.
As well, the system was to be designed to speed up processing of damage claims by linking together MPI and repair shops.
Then-MPI CEO Eric Herbelin said at the time it would cost $107 million and be implemented within three years.
Sundays
Kevin Rollason's Sunday newsletter honouring and remembering lives well-lived in Manitoba.
Two years later, the estimated cost of the project had ballooned to $290 million and the implementation time was pushed to five years. By 2023, Herbelin had been fired by the MPI board after an internal performance review.
His replacement, Jatana, later not only terminated all future Nova work (because the total estimated cost was now $435 million) but in early 2025 also said MPI was temporarily disabling part of what it had already implemented — the computer program used for special risk-extension (SRE) renewals and new policies for commercial customers — while going back to a former paper-based system.
'Despite our significant investments in time and resources, especially in recent months, to move this work forward, we have not seen the improvements that we anticipated,' Jatana said in an email sent in April to staff members which was obtained by the Free Press.
'It has become clear that attempting to fix the system while working in it is not in the best interests of our teams, our broker partners or our SRE customers.'
kevin.rollason@freepress.mb.ca
Kevin RollasonReporter
Kevin Rollason is a general assignment reporter at the Free Press. He graduated from Western University with a Masters of Journalism in 1985 and worked at the Winnipeg Sun until 1988, when he joined the Free Press. He has served as the Free Press's city hall and law courts reporter and has won several awards, including a National Newspaper Award. Read more about Kevin.
Every piece of reporting Kevin 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
a day ago
- Winnipeg Free Press
Disappointment mixed with cautious optimism, resolve in Manitoba as Trump makes good on tariff threat
Manitoba business and labour leaders expressed disappointment Friday after U.S. President Donald Trump hiked his tariff on many Canadian goods to 35 per cent, bringing further economic uncertainty. They remained hopeful ongoing trade talks between the two countries will strike the right deal for Canada's economy. 'We were hoping to avoid this escalation in our current trade tensions with the U.S.,' said Winnipeg Chamber of Commerce president and CEO Loren Remillard. 'We remain confident, in time, we will find common ground with the U.S. administration. The most important thing is getting the right deal for Canada, not necessarily getting it done right now.' MIKE DEAL / FREE PRESS FILES The steel-producing city of Selkirk, just north of Winnipeg, is bracing for potential impacts. Trump increased the tariff (on imports not compliant with the Canada-U.S.-Mexico Agreement, or CUSMA) after a deal wasn't struck before a deadline he imposed. Manitoba Federation of Labour president Kevin Rebeck agreed no deal is better than a bad one for Canada. 'I think there are a lot more businesses that are watching this with great uncertainty and unease, and that's not good for anyone, but we can't let the U.S. just dictate a deal that's only good for them and hurts our economy,' he said. 'I'm glad our prime minister (Mark Carney) is working towards a deal that puts Canadians first.' Rebeck said tariffs are hurting both countries' economies, with about 200 Manitobans — largely in the steel sector and some in food production — on work-sharing measures or laid off. Alan Arcand, the Canadian Manufacturers & Exporters' chief economist, said the U.S. is Manitoba's No. 1 trading partner, with 80 per cent of the province's exports going to its southern neighbour. Manitoba's exports to the U.S. were down by 30 per cent between January and May, he said. 'That's definitely a huge problem for the Manitoba economy,' Arcand said. 'It's been a challenge the entire year, and increasing the tariff rate from 25 per cent to 35 per cent adds on to those difficulties.' Arcand said CME supports the federal government's decision to 'remain firm' and pursue a better deal. Canada's automotive, steel, aluminum, copper and softwood lumber industries have been most affected by the trade war, he said. In Manitoba, the advanced manufacturing sector could be among the most affected by the increased tariff, Remillard said. He said a vast majority of Manitoba's exporters is compliant with CUSMA and therefore will not be subject to the increased tariff, but a significant percentage will be impacted. Remillard said he expects eligible companies that haven't filled out the necessary paperwork will make a 'significant move' to become compliant in the coming days. He said Trump's changing trade policy has had a chilling effect on business. Arcand said it has been nearly impossible for businesses to plan. While some groups or politicians encouraged Ottawa to retaliate, Remillard said the Winnipeg Chamber of Commerce is hoping 'calmer approaches' by the federal government continue, and it doesn't take any action that will hurt Canadians. All levels of government should provide supports or resources to affected sectors to help them weather the storm, he said. Trump already applied 50 per cent tariffs on steel and aluminum imports. The move left the steel-producing city of Selkirk, just north of Winnipeg, bracing for potential impacts. 'You just can't do business at a 50 per cent tariff. It's just out of the question,' said Mayor Larry , who's been monitoring Brazil-based Gerdau SA's steel mill in Selkirk. 'Every time I go by there, I'm looking at the yard to see how many employees' cars are parked there, and how many trailers are there loaded with steel and ready to go. 'Of course, it's been very, very busy before this latest increase to the tariffs. We were seeing a lot of double trailers loaded with steel coming out of the mill.' Johannson said he saw some trailers — destination unknown — ready to go when he drove by Friday morning. 'We're seeing back and forth in there, and that's a good thing. Honestly, as mayor, I just can't see doing business with a 50 per cent tariff,' he said. 'Fifty per cent tariffs is not a fair rate. It's a ludicrous rate.' When Premier Wab Kinew visited the mill in March, he said the Manitoba government will source Canadian steel for all its infrastructure projects and relevant equipment purchases. Wednesdays A weekly dispatch from the head of the Free Press newsroom. Johannson, whose father and grandfather worked at the mill, is hoping that approach is mirrored across Canada. 'We want Manitoba steel to have equal opportunity in any projects in Canada,' he said. 'We can supply the steel.' In the meantime, Johannson wants negotiations between Canada and the U.S. to be 'ramped up.' 'We have to get (the tariffs) down,' he said. 'I wish I could lock the door until they come out of there with a good deal that is beneficial to both.' Chris KitchingReporter Chris Kitching is a general assignment reporter at the Free Press. He began his newspaper career in 2001, with stops in Winnipeg, Toronto and London, England, along the way. After returning to Winnipeg, he joined the Free Press in 2021, and now covers a little bit of everything for the newspaper. Read more about Chris. Every piece of reporting Chris 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.
CTV News
a day ago
- CTV News
N.S. premier ‘will not hesitate to implement retaliatory measures' as U.S. increases tariffs
Nova Scotia Premier Tim Houston says his government 'will not hesitate to implement retaliatory measures' if they are needed as the United States raises its tariffs on Canadian exports. On Friday, President Donald Trump signed an executive order raising tariffs to 35 per cent on products not covered under the Canada-U.S.-Mexico trade agreement. Trump had earlier issued an Aug. 1 deadline for Canada to reach a new trade deal. In a written statement, Houston said it has been a 'long and difficult road' to navigate the trade dispute. 'We never wanted to be in this position,' Houston said. 'No one wanted tariffs. Today, we are learning that we still have more work to do.' Houston said his government will focus on building the province's economy, becoming self reliant, diversifying new trade markets and removing internal trade barriers. Earlier this year, Nova Scotia introduced the Free Trade and Mobility within Canada Act, which allows the province to remove trade barriers. So far it has signed deals to remove trade barriers with Ontario, Alberta and Prince Edward Island. New Brunswick response In a post on X (formerly Twitter), New Brunswick Premier Susan Holt said they are 'extremely disappointed' with the tariff increase, but noted that most of New Brunswick exports are compliant with the Canada-U.S.-Mexico trade agreement. 'We urge the federal government to continue to protect our softwood lumber and steel sectors from these devastating tariffs,' she said. 'Canada is coming together like never before to support our local businesses, workers and build a strong and resilient economy. 'Canada has what the world wants, and we should not settle for anything less than the best deal for New Brunswickers.' Canada has what the world wants, and we should not settle for anything less than the best deal for New Brunswickers. While we are extremely disappointed to see these tariffs continue to move in the wrong direction, the vast majority of the goods New Brunswick exports are… — Susan Holt (@susanholt) August 1, 2025 Holt, who has advocated for a free trade zone in Atlantic Canada, has signed memorandums of understanding on removing trade barriers with Ontario, P.E.I., Manitoba and Newfoundland and Labrador. -With files from CTV News Atlantic's Natalie Lombard
Winnipeg Free Press
a day ago
- Winnipeg Free Press
Brokenhead leadership opens referendum on possible partnership with silica mining company
Brokenhead Ojibway Nation has launched a referendum, asking members to vote on a prospective partnership with Sio Silica, an Alberta-based mining company seeking to drill thousands of wells in southeastern Manitoba to extract silica sand. The online referendum opened Friday and continues until next Friday. Members can also vote in person next Friday at Private Tom Chief Memorial Hall in the community, located about 100 kilometres northeast of Winnipeg. According to a notice sent to band members from Brokenhead's chief and council, Sio Silica has offered the First Nation five per cent of the profits from its mining operations. The share is estimated to total $20 million in annual revenue once the project is fully operational, the notice said. 'As part of our commitment to transparency and community involvement, Chief and Council are seeking direction from (Brokenhead Ojibway Nation) members on whether to continue this relationship and move forward with all related next steps,' reads the notice, obtained by the Free Press. A vote in favour of the partnership would result in the parties negotiating a final agreement and establishing a joint committee to provide oversight and enforcement over potential environmental impacts. A vote against the partnership means Brokenhead does not accept the current profit-sharing offer, the notice said. 'However, should the Province of Manitoba approve the project, (Brokenhead Ojibway Nation) will still be tasked with negotiating an impact benefit agreement, though the terms — particularly the profit sharing — may differ from the final offer,' the notice reads. 'Whichever direction the vote takes, (Brokenhead Ojibway Nation) leadership remains committed to negotiating an agreement that seeks to benefit the community as a whole.' Sio Silica has committed to supporting community members with employment, training and educational opportunities, the notice says. Brokenhead has nearly 3,000 people living on- and off- reserve, according to the federal government. The Free Press has reached out to Brokenhead Chief Gordon Bluesky for comment. Sio Silica previously proposed to drill up to 7,200 wells over 24 years in areas east and southeast of Winnipeg. It seeks to remove silica sand from about 50 metres below ground. The mineral is used to make a variety of products, including solar panels, new batteries and computer chips. Opponents of the plan have raised concerns about the projects potential impact on an underground aquifer, fearing operations could compromise its geological stability and impact water quality. Nearly 100,000 Manitobans source their drinking water from aquifers in the region. The NDP government denied Sio Silica's environmental licences in February 2024, saying the risks outweighed potential benefits. Sio Silica later announced it would take another shot at developing a silica sand mine and began meetings with Brokenhead leadership to pitch the project. A spokesperson for the province declined to comment Friday. Tyler SearleReporter Tyler Searle is a multimedia producer who writes for the Free Press's city desk. A graduate of Red River College Polytechnic's creative communications program, he wrote for the Stonewall Teulon Tribune, Selkirk Record and Express Weekly News before joining the paper in 2022. Read more about Tyler. Every piece of reporting Tyler 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.
