A Competition Bureau investigation revealed that the five individuals manipulated 54 contracts between 2011 and 2016
Yesterday, five contractors in Brandon, Manitoba, pleaded guilty before the Manitoba Court of King's Bench for conspiring to divide up social housing refurbishment contracts among themselves. They each pleaded guilty to one count of conspiracy under section 45 of the Competition Act. They were ordered to pay a combined amount of $196,000 in fines.
Between December 2011 and February 2016, the five conspiring contractors manipulated 54 social housing contracts awarded by the Manitoba Housing and Renewal Corporation, for a total value of approximately $3.5 million. Their scheme allowed them to determine in advance which one would obtain the public contract and to establish the price of the project funded by taxpayers. The Manitoba Court of King's Bench sentenced them to pay the following fines:
- Geoff Gregoire - $61,000
- James Kauk - $53,000
- Guy Pringle - $33,000
- Doug Gunnarson - $25,000
- Ryan Lamont - $24,000
An investigation by the Competition Bureau revealed the existence of this illegal agreement and led to criminal charges against the five individuals in December 2022.
Manipulating contracts to suppress competition is a serious crime, and it is even more concerning when it involves essential services and infrastructure projects for vulnerable populations, such as social housing. These schemes only ever benefit those who collude to increase their profits by driving up the price of public contracts to the detriment of all taxpayers. That is why cracking down on cartels is a top priority for the Competition Bureau, and we encourage anyone who suspects a business or individual of engaging in illegal agreements to report it through our Information Centre or online complaint form.
