City one step closer to removing rotting ship

The clouds on a sunny day may make the MS Lord Selkirk II look not so bad, but Selkirk Mayor Larry Johannson says the ship has to go, and soon. Johannson said the ship could be removed this summer if the province chips in $250,000 in funding for the vessel’s decommissioning. 

By Austin Grabish,  The Selkirk Record

The City of Selkirk says it's one step closer to having the rotting MS Lord Selkirk II removed from the city’s slough for good.

It awarded tender for the ship’s removal last month, but still faces a major funding hurdle though Selkirk Mayor Larry Johannson hints a special announcement could be coming soon. 

Johannson said crews could start cutting the ship up as early as July.

“It will be as soon as we have all our ducks in a row and we’re getting close,” Johannson said.

“It’s going to be a major event.”

The city has set aside roughly half of the estimated $500,000 cleanup cost, and is banking on the province to fund the remainder.  

“We’re waiting on a little help,” Johannson said, noting he has had discussions with Finance Minister Greg Dewar about the ship’s removal.

A provincial spokesperson confirmed the province has been working with the city on the issue, and also hinted an announcement regarding the ship could be coming soon.  

“The province is aware of the situation and has had productive discussions with the City of Selkirk. A positive outcome that will address this safety issue is anticipated, and more details should be available in the near future,” read an email from the spokesperson.

“It’s just been awful there,” Johannson said.

The MS Lord Selkirk II has been in the Selkirk Slough since 1990, but this isn’t the first time the city’s tried to remove the ship.

Johannson has been relentless in pushing for the ship’s removal in recent years.

In an interview last week, he admitted the boat wasn’t on his list of priorities when he came into office two terms ago, but said that changed after vandals set in on fire in 2012 leaving an even greater eyesore for nearby residents.  

In 2012, the city hired Global Scrap Solutions to remove the vessel, but the company faced bureaucratic hurdles and the boat stayed rotting.

Then last year, the coast guard was brought in to pump out dangerous liquids on the ship after a sweeping toxicologist report revealed the ship had been leaking a long list of contaminants including arsenic.

When asked what the city would do if the province doesn’t come through with funding Johannson said:  

“I got a plan b but I’m hoping I don’t have to open that envelope.”

“We’re getting close. I don’t want to jinx anything because this has been 26 years in the making.”

“The administration has worked very hard on this,” he said.

 -- First published in the Selkirk Record print edition June 25 2015 p. 15

Lawsuit may have added to club's financial woes

 

 By Austin Grabish, The Selkirk Record

 

A community club already riddled in a financial mess may have spent more than $62,000 on wages a former employee sued for after he was told to either quit or be fired from his job as icemaker and facility manager. 

Darren Zembik stood at the helm of the St. Andrews Community Club for nearly three decades before being told last March he had to quit or be fired. 

Zembik, a St. Andrews resident and Olympic torchbearer, although reluctant at first opted for the first option and quit his job last April. 

And now the Record has learned Zembik sued his former employer for lost income after he quit.

Court records obtained by the Record show Zembik sued the community club for $62,022.78 shortly after his departure from the club. 

A statement of claim, which has since been discontinued, alleged the community club breached a contract with Zembik that said he would be employed until September 2019.

Documents state Zembik would be paid $50,944.55 a year plus GST with an annual increase of two per cent per year starting in 2009. 

The documents also say Zembik would be paid an additional $3,500 plus GST seasonally to make outdoor ice. 

A statement of defence filed by the community club denied a contract between Zembik and the club contained “any terms of employment,” but admitted Zembik was paid to supervise maintenance at the club and deal with emergency situations. 

The club also denied there was any separate employment agreement relating to outdoor ice. 

The lawsuit was discontinued on Sept. 29, 2014, but Zembik never returned to work. 

Community club finance chair Patrick Gordon refused to comment on the matter, citing a non-disclosure agreement that prevents information from the lawsuit from being shared. 

“We’ve settled that and there was a non-disclose signed so that’s pretty much all we can say,” Gordon said.

Zembik also said he couldn’t discuss details about the lawsuit, but in a text, said, “I’m pleased with the outcome.”

Zembik is no stranger to the St. Andrews community. 

In 2009, RBC recognized him as being one of Canada’s most devoted hockey volunteers for the hundreds of hours he gave to hockey in his community. 

He was also recognized in the Hockey Hall of Fame, carried the 2010 Olympic torch, and RBC donated $10,000 to a local hockey cause in his name. 

Hundreds of residents rallied in support of Zembik last year when he was told he would be fired if he did not step down from his job. 

A Facebook page and online petition that called for Zembik to keep his job and the dismantling of the community club’s board, garnered hundreds of signatures and “likes.” 

Former St. Andrews Mayor Don Forfar told the Record last year he was inundated with calls from concerned residents who didn’t want Zembik to leave. 

The RM of St. Andrews provides thousands in funding to the club, but an independent board runs the organization. 

The club’s finances have been in ruins in recent years, and are currently the subject of an RCMP probe that will determine if any criminal wrongdoing took place at the club. 

 -- First published in the Selkirk Record print edition June 11 2015 p.4

New rules clear up fog surrounding e-cigs

RECORD PHOTO BY AUSTIN GRABISH

Selkirk Fat Panda Vape Shop manager Phil Bouchard smokes from an electronic vaporizer daily.   

By Austin Grabish, The Selkirk Record

The manager of a local vape shop is welcoming proposed provincial legislation on e-cigarettes that would see minors banned from buying the products, but Phil Bouchard fears tougher unfair rules could come next.

The province introduced legislation last Monday that would prohibit the sale of e-cigarettes to minors, ban their use in most public places, and place restrictions on advertising.

If the legislation were passed, e-cigarettes would be treated under the same rules as regular tobacco products.

Bouchard said it’s good the foggy area surrounding the devices is finally being cleared up, but his store the Fat Panda Vape Shop, already doesn’t sell or advertise to minors.

 “That’s all stuff that we’ve implemented from day one,” Bouchard said.

The Manitoba Lung Association said the short and long-term health risks of e-cigarette use are still unknown.

Its executive director Margaret Bernhardt-Lowdon, said regulating the sale of the devices is “simply prudent”.

"As an organization focused on improving lung health, we don't want to repeat past health policy mistakes through inaction,” Bernhardt-Lowdon said.

The proposed legislation would ban the devices from public places where smoking is already prohibited like schools, hospitals, malls, indoor workplaces, and restaurants.

People would still be able to test out the products at vape shops under the legislation, but if that changed Bouchard said "that would be a step too far."

Bouchard said his company’s biggest concern is that the products could be banned from public view and have to be sold from behind a closed curtain like tobacco.   

He said newcomers who have never vaped before would be lost and wouldn’t know what to buy.

He noted many smokers come to Fat Panda wanting to quit, but need help finding devices and the proper product.

Healthy Living and Seniors Minister Deanne Crothers, said there are many unanswered questions surrounding the safety of e-cigarettes.

"Our goal is to find a balance that minimizes possible health risks to children and other bystanders, while acknowledging that some individuals use these products to help them quit smoking,” Crothers said.

The new rules are expected to be in place by the fall.

 

 -- First published in the Selkirk Record print edition June 11 2015 p.7

Selinger grilled over Selkirk hospital tender flip-flop

RECORD FILE PHOTO BY AUSTIN GRABISH

Premier Greg Selinger is seen in this 2014 file photo. The premier was grilled by Liberal MLA Jon Gerrard about a lawsuit initiated against the Interlake-Eastern Regional Health Authority after it cancelled the tender for Selkirk's new hospital. 

By Austin Grabish, The Selkirk Record

Liberal MLA Jon Gerrard grilled Premier Greg Selinger about a lawsuit initiated against the Interlake-Eastern Regional Health Authority after it cancelled the tender for Selkirk’s new hospital.

And Gerrard demanded to know why the RHA denied the lawsuit’s existence in a Freedom Of Information request during question period last month.

“Manitobans have been concerned for some time about the contracting policies of this government and for good reason,” Gerrard said on May 12, while questioning the premier.

He asked why the construction contract for Selkirk’s new hospital was originally awarded to PCL Constructors and then cancelled and given to another company that was not one of the original bidders on the project.

During question period Selinger said the RHA and the province was acting on legal advice when the tender was cancelled.

“Proper procedures were followed based on that legal advice,” Selinger said.

Gerrard said construction of the hospital was delayed two years because of the lawsuit, which was eventually settled out of court.

Court documents obtained by the Selkirk Record earlier this year show PCL filed a lawsuit against the RHA in May 2013.

PCL alleged the RHA breached an obligation by cancelling the tender on false and misleading grounds, and said the health authority utilized the tender process to conduct a reverse auction and engage in a bid-shopping process.

Emails previously obtained by the Selkirk Record through a FOI request show senior officials with Manitoba Health were aware of the lawsuit, and one civil servant called the litigation surrounding the hospital “the ugly file”.

Last December, Gerrard’s office filed an FOI request asking the RHA if it had been served with any lawsuits from 2009 - 2014, and in a reply signed by former CEO John Stinson, the RHA said it had not.

But a story published in the Selkirk Record this April showed the RHA was served with a statement of claim from PCL shortly after it was dumped from the project.

Gerrard said the statement of claim raised serious questions about how the hospital’s tender was handled.

“What is the Interlake-Eastern RHA under today’s NDP trying to hide by denying the lawsuit when we have evidence the lawsuit was initiated?” Gerrard asked before tabling a copy of his information request that was denied.

The Record asked for an interview with Interlake-Eastern RHA CEO Ron Van Denakker, but a spokeswoman said he was unavailable.

In an emailed statement last Friday, Van Denakker denied the RHA was ever served with a lawsuit.

“The RHA did not enter into any lawsuits from 2009-2014. A statement of claim settled out of court is not qualified as a lawsuit. The information received through the FIPPA request is accurate,” Van Denakker said.

A spokeswoman declined to comment further “we have nothing more to say,” she said.

Selinger told the House he is pleased construction on Selkirk’s new hospital has begun.

“This is going to be an important facility to serve the people not only in Selkirk, but to serve the people of the Interlake,” he said.

The new hospital has a construction budget of $111 million.

  

 -- First published in the Selkirk Record print edition June 11 2015 p.3

RCMP probe alleged community club fraud

RECORD PHOTO BY AUSTIN GRABISH

St. Andrews Community Club finance chair Patrick Gordon speaks about the club’s financial practices at its annual general meeting last Tuesday.

By Austin Grabish

RCMP have launched an investigation into financial irregularities at the St. Andrews Community Club after a substantial amount of money was allegedly spent on purchases it has no record of. 

The police probe was launched last month after board members with the community club filed a complaint with Mounties. 

The club has not been able to complete financial reports for the 2011 and 2012 fiscal years, and still has no explanation for how roughly $90,000 was spent on credit cards it used to have.

“We have a lot of finances that we still can’t finalize,” St. Andrews Community Club finance chair Patrick Gordon said.

Gordon, who is also the club’s former president, said the questionable finances stem as far back as five years. 

“We found a few irregularities with the financials and we’ve taken the records that we’ve put together into the RCMP, and they’re in the process of doing an investigation,” he said.

Gordon added an internal audit done by a charted accountant raised some red flags. He said when the club began looking into its past Visa records it became clear suspicious spending occurred.   

“We put a fairly strong case together that we think stuff went on and we’ve taken that case to the RCMP,” Gordon said.

Last August, club president Kurt Procter told the Record nearly $90,000 in purchases made during the 2012 year could not be accounted for.

Last week, Procter said since the investigation is ongoing he could not confirm the amount of suspected fraud police are investigating. However, he said it’s fair to say the amount of questionable spending is “substantial.”

RCMP spokesperson Sgt. Bert Paquet said it’s not too late for charges to be laid if there was any criminal wrongdoing that occurred at the club. 

“Depending on the specific charge, some investigations can go back several years, and still be prosecuted,” Paquet said via an email.

The St. Andrews Community Club was in financial ruins three years ago. Alarm bells went off when Manitoba Hydro phoned Procter informing him the power would be cut off to the building since the club’s utility bills had gone unpaid.  

At the time the club was running a deficit of nearly $80,000.

The phone call triggered the founding of a new finance committee after a new board was formed, in addition to the internal investigation, which left more questions than answers about the club’s finances.

“It was difficult to get answers from the previous board,” Procter said.

Changes were also made to accounting practices at the club including a new mandatory receipt rule for all reimbursements. 

“If you don’t have receipts and justification for spending that money and a board approval we don’t reimburse you for it,” Procter said. 

The club also stopped relying on credit for its purchases. It cancelled its two credits cards and no longer uses a line of credit, Gordon said. 

Gordon told a small audience at the club’s annual general meeting last Tuesday its finances are now back in order.

“We have a balanced budget going forward.”

 -- First published in the Selkirk Record print edition June 4 2015 p.6