New interim CEO at Manitoba Public Insurance after board ousts predecessor

Manitoba Public Insurance has a new interim president and chief executive officer, the province announced on Sunday.

Marnie Kacher, whohas over a decade of experience at the Crown-owned auto insurance provider, will take on the role, according to a Sunday news release. Kacherrecently served as vice-president and chief operating officer.

Justice Minister Kelvin Goertzen, who is the minister responsible for Manitoba Public Insurance (MPI), welcomed Kacher to her new role in the release and said she is well-equipped to lead the corporation.

MPI's board of directors fired the previous president and chief executive officer,Eric Herbelin, board chair Ward Keith said in a statement Sunday.

"After considering a number of factors the board concluded the employment relationship with Mr. Herbelin should be terminated," the statement said.

Herbelin's firing is effective immediately, Keithsaid in aSunday statementposted toMPI's website, which adds that the board will be recruiting for a permanent president and CEO.

Bonuses, vacation time as costs skyrocketed

No further information regarding Herbelin's termination will beprovided out of respect for his privacy, Keith told CBC.

The news comesas MPI's IT renewal project, Project Nova, has nearly tripled from its initial estimated costs of $100 million to $290 million.The timeline to finish the project, which began in 2020, was also extended from three to five years.

The sharp jump in the cost of technology upgrades, a steep rise in projected staffing levels and use of untendered contracts led the province to order anexternal organizational review of MPI last March.

The matter has been discussed in recent days at the Manitoba Legislature.

On Wednesday, the Opposition tabled MPI internal emails characterized by NDP Leader Wab Kinewas showing "very serious concerns about the lack of work" that U.S.-based consulting firm McKinsey & Company did to receive $12 million in untendered contracts by MPI to examine the status of Project Nova.

The Winnipeg Free Press first reported on those contracts in January.

The Free Press also reported on May 8thatHerbelin receivedtens of thousands of dollars in bonuses and wasout of the province formonths on business travel and paid vacation since starting the top job in January 2021.

His salary increased by eight per cent of what former CEOs at the corporation earned,from$348,094when he entered the position to$375,563 in 2022, according to the Free Press.