MPI trims management in wake of scathing audit

Manitoba Public Insurance has eliminated 18 per cent of its management positions after an external audit criticized the Crown corporation for having too many bosses.

MPI cut 32 management positions — to 142 from 174 — following recommendations outlined by the audit, spokesperson Kristy Rydz confirmed to the Free Press Wednesday.

While the Crown corporation “parted ways” with a small number of leaders, Rydz said the majority of the reduction was done by maintaining vacancies and rightsizing roles.

“These changes respond to many of the recommendations put forward by (Ernst & Young) following last year’s organizational review and align with commitments made by MPI’s board of directors to revise our structure in support of our strategic direction,” Rydz said in an emailed statement.

A 114-page report by consulting firm Ernst & Young, which was released in January, found MPI had too many management positions for an organization of its size and complexity, with 349 employees holding managerial titles.

Of those managers, 20 did not have anyone reporting to them directly and 84 had fewer than four people reporting to them.

The review was ordered by former Progressive Conservative justice minister Kelvin Goertzen in April 2023, following a series of controversies at the public insurer. In addition, the Public Utilities Board published a laundry list of issues with MPI’s management of its information-technology venture, dubbed Project Nova, and its financial reporting.

Rydz said the management changes were also made, in part, after consulting with employees and stakeholders and were done to help the organization’s long-term success.

On Wednesday, Premier Wab Kinew called the cuts a necessary step.

“I’m OK with saving Manitobans money and a five per cent savings on (their) Autopac this year… there was too much bureaucracy at MPI and, you know, we’ve set a direction that we want to fix that,” the premier said at an unrelated press conference.

The NDP appointed new board members to MPI after taking office last fall.

Kinew said he was prepared to do the same in other sectors of government but wouldn’t elaborate.

“You’ll see me standing at a podium to announce those changes when we’re ready to make those plans publicly.”

Opposition MPI critic Doyle Piwniuk was not available for comment.

The report also found directors, senior directors and executives do not have key objectives or measures of success related to their roles, and key performance indicators for the corporation either do not exist, are not actively monitored or are not acted upon.

“There is an overall risk-averse culture at MPI with an over-reliance on committees (and) collective decision-making and a lack of individual accountability,” the report stated.

“While most executives seem to understand their individual responsibilities, there is a mixed level of understanding of the roles of other executives in the organization, particularly when there is confusion as to which executive has a lead role for a particular responsibility.”

The firings are the latest in a slew of scandals that have plagued the auto insurer. In May 2023 CEO Eric Herbelin was fired by MPI’s board of directors following an internal investigation into his workplace conduct. Under his 30-month tenure, there was a $200-million overrun on Project Nova; improper use of $113 million in Autopac revenue for non-Autopac expenses; and $12 million in untendered contracts.

In February, MPI executive Satvir Jatana stepped in to replace Herbelin after a months-long search.

nicole.buffie@freepress.mb.ca