Cable repair company ‘troubled by allegations’ in $1.6M contract with Manitoba government

A cable repair company that contracted with Manitoba’s Progressive Conservative government to fix cable lines says it’s “troubling” that it was forced to close down operations.

The company, Teknik, said it shut down operations at the end of December because it was unable to pay its bill and because it faced “serious questions” about its business practices.

Teknik is owned by the University of Manitoba’s technology company, Nortel Networks, which has a long history of poor customer service.

Teknix is a telecommunications company owned by Nortel and Teknica.

The provincial government said in a statement that Teknik had not provided sufficient information to support the contract and was “not operating within the rules” for the repair of a province-owned cable.

The government said Teknic had been “subject to significant regulatory scrutiny” and had “serious concerns” about Tekniki’s business practices and its “conduct” with its customers.

The province’s Information and Privacy Commissioner said Teknik had not yet filed an information request with the province.

Teknic said in an email that it “will continue to work with the provincial government to resolve these issues and to ensure the integrity of our business” but that the company was “taking this opportunity to close its doors.”

The Progressive Conservatives said the government’s investigation of Teknika was prompted by an internal probe into allegations that Teknik’s services were not up to scratch.

“The province has received numerous complaints from Teknics customers, and Tekniks performance has been extremely poor,” NDP Leader Cam Broten said in the release.

“It is a sad day when our government fails to act and fails to take immediate action to remedy the problems in the company.”

The NDP said the probe was “an attempt by the Progressive Conservatives to deflect blame for their own failings and the poor performance of their own employees.”

Broten, who represents the area where Teknik operates, said the province’s investigation had uncovered a “pattern of poor performance and poor customer services” and was investigating Teknichs “management practices and procedures.”

“The investigation is part of the broader review of government oversight of the telecommunications sector, including the ongoing review of Teknik and other providers,” Broten’s statement said.

“These investigations have found no evidence of any wrongdoing by Tekniik and that they are operating within provincial law.”

Teknik said in its statement that it had “never and will never be able to comply with Manitoba Government regulatory requirements in any way” and would be working with the government to “resolve any concerns or questions.”

Tekniga is owned and operated by Nortell Networks.

The NDP’s statement on Teknnik said it “has a history of being subject to significant regulation and scrutiny.”

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