In 2019, the City of Toronto faced a serious electricity fraud where a retired employee's credentials were misused to obtain contracts with third-party energy retailers. This unauthorized switch involved 14 city properties and led to contracts worth $4.2 million, exceeding the expected costs with Toronto Hydro by $2.5 million. The city managed to recover $250,000 paid to these retailers before the contracts were canceled. An investigation by the Auditor General's Office aimed to uncover the responsible parties and determine potential wrongdoing by city employees.
The Auditor General's Office released a report stating that a retired city employee's credentials were used to sign contracts with third-party energy retailers, resulting in a $2.5 million loss.
The city's Corporate Real Estate Management Division discovered that 14 city-owned properties had been switched to different third-party energy retailers in July 2019 during a routine account review.
A total of $250,000 was paid to the two energy retailers from September 2019 to January 2020 before the contracts were cancelled, with the city later recovering the funds.
The Auditor General's investigation aimed to identify those responsible for entering the city into contracts and to ascertain whether any wrongdoing by city employees occurred.
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