An external review of Manitoba Public Insurance, the province’s Crown-owned auto insurance corporation, has found instability, confusion over responsibilities and a high ratio of managers.
The review by consulting firm Ernst and Young was ordered last year by the former Progressive Conservative government after projected staffing levels surged, contracts were awarded without tender and a technology overhaul called Project Nova saw its estimated cost almost triple to $290 million.
“It’s no secret that the chain of trust between MPI and its stakeholders has been fractured. MPI must demonstrate progress in the next six months underpinned by robust financial and operational data,” the report, released Friday, said.
Among the issues raised by Ernst and Young is numerous layers of management. About 16 per cent of all employees are “leaders” – managers or supervisors, the report said. Roughly 30 per cent of the leaders have three or fewer people reporting directly to them. Some have none.
“For an organization of the size and complexity of MPI, the managerial layers are relatively large and average spans of control are relatively low,” the report states.
There were 20 organizational changes in a recent two-year period, leading to instability and uncertainty, the report added, and it is sometimes unclear who is responsible for different lines of business such as revenue and expense projections.
Upheaval at MPI was highlighted last spring when its chief executive officer was dismissed over what the board said was a workplace conduct issue.
A chief information and technology officer resigned soon afterward. The board at the time said he had been allowed to commute from Toronto and have his travel paid for, and left after being told he would have to move to Winnipeg.
The Crown corporation was hit by a strike later in the year. After the Progressive Conservatives lost the provincial election in October, the new NDP government replaced almost all the board members and ordered a new contract offer with higher wages that settled the walkout.
Carmen Nedohin, who was named board chair in that change, said Friday the report will be acted on and a new chief executive officer is to be named next week.
“I would suggest that this report will be a really good opportunity for the new CEO to take a look at all of the different sections and more properly align the management that is required for various parts of the strategic plan,” she said.
The report led to finger-pointing at the legislature.
Justice Minister Matt Wiebe accused the former Tory government of not focusing on affordability and customer service.
“We know there needs to be a shakeup at the highest level (at MPI) and also empower the talented folks at MPI by giving them a clear mandate that is customer driven,” Wiebe said in a prepared statement.
The Opposition Tory critic for the Crown corporation, Doyle Piwniuk, said the Tories launched the review to improve things and insurance rates remain affordable.
“Despite the NDP trying to scare Manitobans about the well-being of MPI, recent results confirm MPI remains fiscally strong with stable rates.”