Former Morenet contractor Sergii Polishchuk is suing the city of Morden for $524,400.

In the lawsuit Polishchuk claims city council disclosed confidential information to competitors in regards to the Internet technology he and his company, Infotec Manitoba, had designed.

Former Morden Engineering Director Dave Haines is a second plaintiff in the lawsuit, seeking over $20,000 in damages claiming he is still owed payments for his agreement with the city to oversee the Morenet project.

Both plaintiffs allege city councillors made untrue statements that disparaged their reputations and have prevented them from obtaining other business.

Morenet was shut down in October of 2019, less than 18 months after it was launched. At the time approximately 450 households had been hooked up.

The public Internet service was designed to offer high-speed Internet at no monthly charge for Morden residents, following a $400 installation fee.

However, while the total project was originally supposed to cost the city $100,000 in annual operating costs and around $400,000 in capital costs, council said last year capital costs had ballooned to $650,000 after multiple delays and technical issues.

After a reassessment, Mayor Brandon Burley said in September 2019 they learned of multiple viability issues and had council wanted to continue the project, they would've had to inject another $1.5 million into Morenet last year alone.

City council put out a call for proposals earlier this year and has since contracted Valley Fiber to install fibre optic Internet in the community.

City of Morden Marketing and Communications Coordinator Viktor Karklins notes the city cannot comment on any ongoing legal proceedings.

Related Article - Morenet Internet Service To Cease Operations October 30th 

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