February 16, 2026
Red FM News Desk
Toronto’s auditor general has uncovered a series of misconduct cases ranging from stolen packages to sick-leave abuse and an attempted multi-million-dollar fraud, according to a new annual report tabled Thursday.
Tara Anderson, the city’s auditor general, writes in her report that the impact of fraud extends beyond financial losses, warning it can erode public trust in city operations.
Among the most serious cases detailed was a 2019 attempted electricity fraud in which a retired city employee’s credentials were used to sign energy contracts with third-party retailers instead of Toronto Hydro. The scheme nearly cost the City of Toronto $2.5 million before it was detected.
The report also outlines smaller, but troubling, internal cases. Over a two-year period, more than 20 electronic packages worth $21,100 went missing from city mailrooms. An internal probe concluded “on the balance of probabilities” that one employee stole three packages valued at about $2,300. That employee is no longer with the city and is ineligible for rehire. The remaining $18,800 in missing items could not be conclusively linked to a suspect.
In another case, a city employee collected three weeks of paid sick leave costing approximately $3,200 while working a separate job.
City divisions involved have since introduced tighter controls, including improved mailroom security and stronger oversight measures, as the auditor’s office continues to monitor risks tied to employee misconduct and internal fraud.
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