Internal communications obtained by the NDP indicate apparent doubts within Manitoba Public Insurance (MPI) regarding the effectiveness of the consulting firm hired to oversee its IT renewal project.
Referred to as Project Nova, MPI’s IT initiative was estimated to cost just slightly over $100 million when it commenced in 2020. This estimate has since ballooned to $290 million, with its timeline also extended from three to five years.
Amid concerns over the project’s rising costs, MPI awarded consulting firm McKinsey & Company with untendered contracts worth $12 million. However, a leaked email chain from MPI seems to indicate that there are concerns over McKinsey’s involvement in the project.
The emails in question were released by the NDP during a question period on Wednesday, with NDP leader Wab Kinew stating that they showed “very serious concerns about the lack of work that McKinsey has done to earn that $12 million.”
According to a report by CBC News, the email chain said the consulting firm isn’t meeting objectives on Project Nova and even asked if “removing McKinsey” is an option.
Kinew criticized Premier Heather Stefanson during the question period, asking why the government was paying $12 million to a company that failed to fulfill its contractual obligations.
In response, Stefanson emphasized that the government has issued a directive to ensure a competitive procurement process at MPI, in addition to an external organizational review that was ordered last March.
Meanwhile, a spokesperson from Manitoba Justice told CBC News that the leaked emails were unrelated to the provincial government, emphasizing that the contract between McKinsey and MPI is independent of government involvement.
As for MPI, the Crown corporation has defended its collaboration with McKinsey, with a spokesperson stating that the firm’s consultation had enabled the successful launch of two stages of Project Nova since September 2021.
The MPI spokesperson also told CBC News that the leaked emails were made public “without full context.”
“MPI is proud to deliver value for Manitobans and is committed to completing Project Nova on time and on budget,” the spokesperson added.
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