Toronto City Council Scandal: Frauds including parcel theft and fake leave exposed

 

 

 

The Auditor General has released information about frauds involving city employees in Toronto. The report details serious frauds, including stealing parcels from city mailrooms, selling off security equipment, and taking fake leave to take a second job. A major electricity fraud that could have cost the city nearly $2.5 million was stopped through an investigation.

A contracting company embezzled an additional $1.1 million by falsifying subcontractors’ price lists. The company has been banned from city work for five years. More than 20 parcels worth $21,100 have gone missing from city mailrooms over the past two years. The employee who was responsible for the incident has been fired. The employee who took paid leave to take another job has been arrested. He was forced to pay back the $3,200 he received and resign from his job.

An employee who sold masks and gloves provided by the municipality online was suspended. In addition, an employee who fraudulently purchased $53,000 in gift cards under the pretext of giving them to deserving people was fired and the money was recovered. Another employee who tried to extort money by making 85 false medical claims without seeking treatment also resigned. An investigation conducted based on various complaints received in 2025 estimated that the municipality lost $4.5 million last year alone. A large part of this was related to the subsidy management department.