Global Courant
Article content
WINNIPEG – The Crown-owned Manitoba auto insurance company on Tuesday provided more details about the recent turmoil that has led to the departure of senior executives and a major jump in the cost of technology upgrades.
Article content
Ward Keith, who took over as chairman of Manitoba Public Insurance this spring after his predecessor stepped down, last week explained the departure of the company’s chief information and technology officer, Siddharta Parti.
Parti lived in Ontario and the company paid for his travel expenses to Manitoba, Keith said.
“Based on an agreement between this person and the former CEO, travel costs to and from Manitoba were charged to the company. That was another reason why I didn’t find this an acceptable arrangement,” Keith said.
A company official later said Parti received a total of $19,021 in travel expenses over nine months, including commutes and business trips.
Article content
Parti was asked to move to Manitoba but chose to step down last week, Keith added. The Canadian press could not reach Parti for comment.
That resignation came shortly after the departure of CEO Eric Herbelin. MPI said last month that Herbelin was fired by the board following a review of his workplace conduct.
Herbelin did not respond to an interview request. Keith gave few additional details on Tuesday, except that the review covered more than just his interactions with employees.
“Based on the results of that investigation, the board met and determined there was sufficient concern to terminate his employment with cause,” said Keith.
Manitoba Public Insurance has faced questions over the past two years, primarily over a plan called Project Nova aimed at upgrading its various technology platforms. The project includes plans to allow the public to buy auto insurance online.
Article content
The expected cost of the project has increased from $106 million to $290 million. The timeline has been extended from three to five years.
Keith said Tuesday that the newer price tag includes $60 million in emergency funds and he’s confident project costs are now under control.
“To date, virtually none of those contingencies have been used,” he said.
The company also faced controversy over plans it submitted to hire 420 people — a 21 percent increase over its pre-COVID-19 workforce. Many new employees would be linked to Project Nova.
In January, this led to a warning from the Public Utilities Board, the provincial regulator. The board said the hiring appeared careless and that Project Nova lacked management control.
There were also questions about non-tendered contracts. Kelvin Goertzen, the minister responsible for MPI, cited that as one of the reasons he commissioned an external assessment of the company this spring.
That evaluation is expected in December.
Meanwhile, MPI is preparing to submit its fiscal year 2024-25 plans to the utility. That plan is to include a freeze on total fare revenue, though some categories of motorists may see small increases or decreases, Keith said.
This report from The Canadian Press was first published on June 6, 2023
