Manitoba Contractors Penalized $196,000 for Colluding on Social Housing Contracts
Five Manitoba contractors have been fined after pleading guilty to conspiracy charges related to government social housing contracts.
They were charged in December 2022 following an investigation by the Competition Bureau, which found that the men manipulated 54 contracts between 2011 and 2016.
Initially facing charges of conspiracy to commit fraud over $5,000 under the criminal code, they were also charged with conspiracy to allocate contracts under the Competition Act.
They pleaded guilty to one count of conspiracy under the Competition Act in the Manitoba Court of King’s Bench.
The contracts, awarded by the Manitoba Housing and Renewal Corporation for social housing refurbishment, totaled $3.5 million, according to the Competition Bureau.
As part of the scheme, the men were able to pre-determine the recipient of the public contract and set the project’s price.
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The contractors were collectively fined $196,000, with Geoff Gregoire ordered to pay $61,000, James Kauk fined $53,000, Guy Pringle ordered to pay $33,000, Doug Gunnarson fined $25,000, and Ryan Lamont instructed to pay $24,000.
Commissioner of Competition Matthew Boswell stated, “Collusion in public contracts allows a handful of unscrupulous businesses and individuals to profit at the expense of taxpayers and reduces the public funds available for urgent needs like affordable housing.”
Individuals found guilty of price-fixing, market allocation, or supply restriction (conspiracy) could face fines up to $25 million and jail sentences up to 14 years, as per the Competition Bureau.
In a separate case involving government contracts, a former executive of Pavages Maska Inc. in Quebec pleaded guilty to bid-rigging for contracts from the provincial transport ministry, resulting in a fine of $20,000. Pavages Maska was also fined $100,000 for its role in bid rigging during 2008-2009.
Marcel Roireau, involved in the same scheme, received 12 months of house arrest in September 2024.
Road construction company DJL Inc. was ordered to pay $1.5 million for its involvement in bid-rigging with competitors for Quebec paving contracts in the Granby region.
In 2023, two Quebec men were charged in connection to an alleged bid-rigging conspiracy for Quebec City infrastructure contracts following a Competition Bureau investigation. Patrice Mathieu and André Côté faced charges of bid rigging, fraud, and conspiracy relating to incidents between 2006 and 2010.
