City of Winnipeg top bureaucrat Phil Sheegl quits

A top bureaucrat and controversial figure at Winnipegs city hall has quit.

The City of Winnipeg announced Chief Administrative Officer Phil Sheegl resigned on Thursday.

Earlier this year, one city councillor called for Sheegls resignation after a number of controversial deals were made under his purview, including the firing of the city's fire chiefand a highly-scrutinized business deal with Mayor Sam Katz.

PhilSheeglhas resigned. Here's hoping the changes to come will be an opportunity to rebuild the public trust.- Tweet from City Coun. Jenny Gerbasi

Sheegl's resignation comes just days before an audit of a fire-hall land swap deal was set to be released. The external review was ordered aftercity council killed a dealthat would have seen Shindico, a local developer, exchange land on Taylor Avenue for three other city-owned properties.

The swap was arranged between former fire chiefReid Douglas and Shindico and would have seen landon Taylor Avenue swapped for two fire stations that had been declared surplus by the city as well as a parcel of land on Mulvey Avenue.

When city council found out about the deal, they killed it and arranged for an external audit, to make sure the city was getting the best value for the properties Douglas had agreed to trade.

A fire station has already been built on the Taylor Avenue parcel, and the city is now working on a deal to purchase the land.

There will be all sorts of theories, and I have no doubt in my mind "falling on the sword" theory is certainly going to be out there- Mayor Sam Katz on whether Sheegl quit because he was becoming a political liability

Douglas was then fired in late September, but city officials have remained mum about why.

Shortly after his dismissal, Coun. Ross Eadie called for the firing of Sheegl, saying a number of controversies surrounding the CAO have lead to a lack of trust.

Eadie cited concerns over Douglas' firing andSheegl's past business dealings with Mayor Sam Katz. In 2012,Katz bought an Arizona-based business from Sheegl for $1.

Eadie said he planned to introduce a formal motion this month to haveSheeglfired, but Sheegl beat him to it by resigning.

On Thursday, Eadie echoed his concerns, saying the $1 business swap between Katz and Sheegl was highly concerning.

"They are that tight? That's it's just untenable. It just can't work," he said. "[It]might work in the private sector, but it doesn't work in a public entity."

Mayor has no idea why friend Sheegl quit

"He submitted his resignation and all members unanimously accepted it on EPC," said Katz, who says he does not to know why Sheegl left.Ive dealt with this on occasions before. Its not the first one."

Katzspeculated Sheegl's resignation had to do with "pressures of the job."

Katz andSheeglare known to be friends outside of office. When pressed on why he didnt know the reason forSheegl's resignation,Katzsaid, I dont mix apples with oranges. This is strictly business and thats the end of that.

"There will be all sorts of theories, and I have no doubt in my mind 'falling on the sword' theory is certainly going to be out there," Katzadded,referring to Sheegl becoming a political liability.

Katzalso denied knowing if the resignation was tied to the impending release of the fire hall audit on Monday.

I dont believe that there is any [connection] but, you know what? Well, I guess, Monday well all know for sure, said Katz.

City councillors react

City Coun. Paula Havixbeck is worried Sheegl's departure will make it difficult to get answers after the audit is released on Monday.

She said it likely foreshadows a negative audit report.

"I conclude that this audit must be very bad if a key employee can just depart right on the heels of this coming forward next week," she said. "I think that makes a bold statement how bad the audit really is."

As for the controversy swirling around Sheegl, Havixbeck would only say, "There was a lot of questionable behaviour. I will say that."

City Coun. Jenny Gerbasiseemed to concur when she tweeted shortly after the news broke, "CAO Phil Sheegl has resigned. Here's hoping the changes to come will be an opportunity to rebuild the public trust."

Sheegloffered no public insight into why he left on Thursday. Instead, he sent a resignation letter to all city staff, thanking the mayor and city councillors for his "meaningful and productive" time at city hall.

Controversy surrounds Sheegl

Since his hiring, Sheegl has been a controversial figure at Winnipegs city hall.

The Canadian Centre for Policy Alternatives raised questions about the man when he was first hired by the city to head up the department of planning property and development in 2008.

The centre published an article cautioning city officials about his appointment, saying Sheegls background in land development was problematic as developers interests versus the interests of the public could be at odds.

It is hard to believe that the city could not attract someone with a more suitable background than real estate development, the report read.

On Thursday, Lynn Fernandez, a spokesperson for the centre, said, Weve had questions from the beginning, and we have many questions remaining.

Those concerns were echoed by citizens in a 2012 Ekos Research poll commissioned by CBC.The poll found 61 per cent of people polled thought Sheegl had"definitely" or"probably"been involved in conflicts of interest in the past.

When it was released, Sheeglsaid he still felt he had the confidence of city hall, regardless of what others thought of him.

Going forward,Fernandez added the centre will be very interested in the results of the fire hall audit expected to be released on Monday.

Timeline of Phil Sheegl's history with the city

Read Phil Sheegl's full letter to city staff