Toronto's chief auditor has reportedly unveiled a surge in fraud and waste reports against City Hall, the highest since the inception of their oversight program in 2002, resulting in several city employees being dismissed and some cases handed over to the police for legal action.
Last year, the Auditor General's hotline received an unprecedented 1,054 complaints, which translated into 1,450 separate allegations of misconduct. This spike in reports underscores the city's ongoing battle against financial misdeeds affecting taxpayer funds.
In a statement to CTV Toronto, City Councilor Josh Matlow emphasized the importance of integrity in managing the city's finances, stating that taxpayer money must be safeguarded against fraud and misuse to ensure it serves the community's needs.
Among the cases uncovered were allegations against city staff, local residents, and businesses engaged with the city. Notably, a builder was found to have constructed lavish homes without the necessary approvals from the Toronto Building department, including one with an indoor basketball court and extensive underground parking, raising safety and compliance concerns, as per the report.
Other notable cases involved a city employee who secretly ran a subcontracting firm that unlawfully secured city contracts, and an individual who fraudulently obtained $61,000 in subsidy payments through identity theft. These incidents led to disciplinary actions, including terminations and police referrals.
In total, the city took disciplinary actions against a dozen employees for fraud and waste. This included a worker who was dismissed for misusing sick leave and another who submitted false benefit claims. The loss attributed to such fraudulent activities over the past five years is estimated at nearly $30 million.
Audit committee member Paula Fletcher highlighted the city's zero-tolerance policy towards rule violations, asserting the necessity of strict oversight to preserve public funds and trust.