5 Westman contractors charged with federal conspiracy offences linked to Manitoba Housing contracts

Five western Manitobacontractors have been charged with federal conspiracy offences for allegedly trying to defraud the provincial government ofmillions of dollars in contracts for fixing up social housing units.

A Competition Bureau investigation alleges five individuals manipulated at least 89 contracts awarded to them by the Manitoba Housing and Renewal Corporation, according to a news releaseissued by the federal agency on Monday.

The Public Prosecution Service of Canada filed a preferred indictment against the five contractors for allegedly dividing up the contracts for refurbishingsocial housing units among themselves.

Matthew Boswell, the commissioner of competition with the bureau, suggested the accused colluded to suppress competition, which "is a serious crime."

"It results in higher costs for construction projects and is especially concerning when it comes to affordable housing," Boswell said in a statement.

The contracts, valued at about $4.5 million, were awarded betweenDecember 2011 and February 2016.

The contractors have been charged with conspiracy to commit fraud over $5,000 under the federal Competition Act and with conspiring to allocate contracts under the Competition Act.

Four of the contractors are based in the Brandon area. The other is in Onanole, south of Riding Mountain National Park.

CBCNews reached three of the contractors. Two declined to comment and one said he does not recall the contracts in question.

Manitoba Families Minister Rochelle Squires, who is responsible for social housing, thanked the competition bureau for conducting what she described as a thorough investigation.

The province has taken steps to ensure money allocated for social housing is spent wisely, she said.

"Since 2015, all tendering inBrandon has gone through a public tendering process," she said, and that process applies to jobs that come in below the usual threshold for tendering.

An external audit recommended the change, she said.