Manitoba government asks auditor general to review daycare project connected to PC campaign director's company

The state has asked Manitoba's auditor wide to reappraisal a $100-million daycare operation task initiated by the erstwhile Progressive Conservative authorities successful concern with a institution which paid millions of dollars to a abstracted institution co-owned by the manager of the PCs' 2023 re-election campaign. 

In 2022, the state announced a $70-million "partnership" which included John Q Public Inc., a institution that is owned by 12 agrarian municipalities, which are listed arsenic shareholders 

'The full task managed by John Q was valued astatine astir $100 cardinal and whitethorn not person followed mean provincial oregon municipal procurement practices," says an April 16 missive from Brian O'Leary, lawman curate of acquisition and aboriginal learning, to the auditor general, which was tabled during question play Thursday.

John Q entered into a declaration with Boom Done Next, a absorption consulting company, according to Colleen Sklar, CEO of John Q Public Inc. 

Boom Done Next is owned by Joe Leuzzi and Marni Larkin, the PCs' run manager successful 2023.

Twenty-two daycares were built.  All but 1 person since opened according to John Q. 

On Thursday, Manitoba's Minister of Education and Early Childhood Learning, Tracy Schmidt, stood up successful the Legislature and said erstwhile premier Heather Stefanson and erstwhile acquisition curate Wayne Ewasko "awarded" child-care task deals to Boom Done Next, which overlapped with the clip Larkin was moving the PC Party campaign.

Schmidt said successful question play Larkin's institution received $2.8 cardinal from taxpayers. 

"John Q is an umbrella enactment that awarded galore contracts to galore subcontractors. Boom Done Next is 1 of those subcontractors and Marni Larkin is listed arsenic the proprietor and manager of Boom Done Next," said Schmidt extracurricular the legislative chamber. 

It is not wide wherefore the curate said the wealth paid to Boom Done Next was "awarded" by the erstwhile premier and acquisition minister, erstwhile they were contracted by John Q.  

CBC News had been asking questions astir the daycare task and the engagement of Boom Done Next for much than a week. The state has not yet answered a fig of those questions.

When CBC News interviewed Schmidt connected April 10, the Minister didn't look to cognize overmuch astir the daycare project. At the time, she said she assumed the declaration to John Q was tendered oregon awarded done a petition for proposal, oregon RFP.

The state has not confirmed if either a tender oregon RFP happened.

In the April 10 interrogation with CBC News, Schmidt was asked astir details of the daycare task and said "I'm not present to question the decisions made by different governments." 

Daycare task was John Q's idea

Sklar said John Q pitched the ready-to-move daycare task to the state successful 2021, which would spot millions successful authorities assistance wealth fixed to to physique 22 daycares located successful agrarian municipalities. 

Sklar says the state agreed to the concern aft aggregate meetings with provincial staff.

"Actually, Joe [Leuzzi] helped america successful the precise opening recognize what was indispensable to bash this project. We needed to understand, we don't bash construction, we needed to recognize however bash we negociate construction," said Sklar successful an interrogation with CBC News. 

When asked if it was Leuzzi's thought oregon hers, Sklar said "it was a collaborative idea."

"It's our idea, and Joe helped america with that and it was truly important to person that benignant of insight," said Sklar.

She said she reached retired to Leuzzi aft learning helium worked connected the Bruce Oake Recovery Centre, an addictions attraction installation built connected metropolis land. The metropolis had sold the onshore to the state successful 2018 with the statement it would beryllium leased to the attraction centre for $1 per twelvemonth for 99 years.

Sklar said she wanted to cognize however they got specified a large agreement. 

"I wanted to cognize however they got the onshore … with the metropolis arsenic a mode to leverage the build," said Sklar.

In an email to CBC News, Leuzzi said Boom Done Next was brought into the project because "we present results."

He said Larkin, his concern partner, recused herself from the task and played nary role.

"The proposition that our relation successful this important enactment is someway fishy successful immoderate mode is disappointing and frankly, disheartening," wrote Leuzzi.

He called the province's missive to the auditor wide "a governmental communicative to make headlines" and said it was "not lone unfair to the galore professionals who contributed to this effort — it besides does a disservice to the families who are present benefiting from greater entree to high-quality, affordable kid care."

The daycare task was managed by JQ Built, a spinoff institution of John Q Public. Sklar said JQ Built paid Boom Done Next to supply oversight of the operation declaration to physique 22 daycares.

The wide contractor was awarded done a nationalist tender to Pretium Projects, whose president Justin Bova is the lad of Joe Bova, who co-chaired the PC Party's failed re-election bid successful 2023. 

Pretium was not the lowest bidder, said Sklar, but it was the highest ranked. 

On the nighttime of her decision successful October 2023, Stefanson thanked Joe Bova, arsenic good arsenic Larkin, who she called her run manager and friend. 

John Q's website says its profits are divided betwixt its shareholder municipalities. CBC News reached retired to the 12 shareholders and lone heard backmost from two. 

The RM of Rosser said nary wealth has been received truthful acold by the municipality from John Q.

The RM of St Andrews says it besides has not received immoderate funds from John Q.

In a little interrogation Thursday afternoon, Brad Erb, reeve of RM of McDonald and seat of John Q, said nary RM has received organisation of immoderate profits from John Q. He would not explicate why, but said helium looks guardant to the auditor general's reappraisal process and that helium had nary further comment. 

Former acquisition curate Wayne Ewasko said successful a property league aft question play helium was not alert astir the declaration with Boom Done Next. He said helium ne'er met with Sklar astir the daycare task and Boom Done Next did not enactment connected his 2023 re-election campaign.  

"I don't personally person immoderate concerns," Ewasko said.