A recent report from Toronto city hall has revealed troubling instances of suspected fraud and financial losses amounting to millions of dollars for the municipality.
The report, conducted by auditor general Tara Anderson’s office, focused on the City of Toronto’s fraud and waste hotline. In 2025, the hotline received close to 700 complaints, encompassing over 1,100 different allegations. This confidential platform allows both city employees and the public to report concerns related to fraud, conflicts of interest, and resource misuse.
Among the notable cases uncovered was a scheme involving electricity contracts for 14 city properties. Investigators found that accounts had been illicitly switched from Toronto Hydro to third-party retailers without proper authorization, utilizing credentials linked to a retired employee.
The auditor general’s office estimated potential losses of approximately $2.5 million if this issue had not been detected in time. Councillor Paula Fletcher emphasized the importance of the fraud hotline in catching wrongdoers and preventing further financial harm.
While some cases were relatively minor, they still incurred costs. For instance, an employee claimed three weeks of paid sick leave while simultaneously working another job, resulting in a $3,000 loss for taxpayers. Additionally, over 20 packages containing electronic devices vanished from City of Toronto mailrooms, with one employee identified as stealing items worth around $2,300.
Confirmed fraud and waste incidents have led to actual losses of $6.3 million over the past five years, according to the report. The early detection of these issues has averted around $4 million in potential losses, with over $700,000 recovered as a result.
Councillor Stephen Holyday commended the auditor general’s office for its significant financial savings to the city, emphasizing that every dollar invested in their work yields $9 in returns. Despite these positive outcomes, the focus remains on addressing recurring patterns and strengthening procedures to prevent future occurrences of fraud and waste.