Manitoba Public Insurance (MPI) has officially scrapped Project Nova, a long-troubled IT overhaul initially launched in 2019 to modernize the Crown corporation’s insurance and licensing systems. Initially budgeted at $86 million, the project ballooned to a projected $452 million with only two of four phases completed and just 30% of its scope delivered.
At a Thursday news conference, MPI president and CEO Satvir Jatana called the project a failure that “did not deliver the value for money that was originally planned and promised.” Since being appointed in early 2024, Jatana paused the project to reassess its viability and determined continuation would be irresponsible.
To date, $162 million has been spent, with only $46.5 million of that yielding tangible value. The cancellation follows a period of poor governance, leadership turnover, pandemic-related delays, and a historic strike. At its peak, the project involved around 500 personnel, including 300 consultants—many of whose contracts have since been terminated.
The announcement comes as Manitoba’s finance minister Adrien Sala requested an independent audit of Project Nova’s decisions and management. His letter cited questionable vendor contract terms, software selection concerns, and the revelation that MPI is locked into $88 million in licensing fees over the next seven years—$68 million of which is for software that may never be used.
Despite the termination, MPI says it remains committed to modernizing its outdated systems. Jatana confirmed a new five-year IT roadmap is underway, with a focus on modular, achievable projects spanning 12 to 24 months. This approach will prioritize accountability, clear governance, and sustainable timelines, in line with industry best practices.
Both Manitoba’s NDP government and the opposition Progressive Conservatives traded blame over Nova’s failure, each pointing to the other’s tenure during critical phases of the project.
A close-out report is expected to outline the final financial losses and will clarify which expenditures will need to be written off. Jatana emphasized that despite the project’s failure, it will not impact insurance rates for Manitobans.
Swifteradio.com
