Controversy
On February 25, 2011, an audit conducted by Toronto's auditor general Jeffery Griffiths revealed a list of inappropriate expenses incurred by TCHC as a result of staff abusing the organizations' funds for personal interest. Examples include: A $1850 boat cruise for "staff development"; $1925 for manicures and pedicures; $6000 for a planning session in Muskoka; $53,500 for a 2008 staff party; $40,000 for a staff Christmas party in 2009; $800 to provide massages at a staff picnic.
Frequently deemed the most offensive of all the expenses by media figures, social advocates and TCHC residents alike was the purchase of a box of chocolates from luxury department store Holt Renfrew at a cost of $1000.00.
Additionally, contracts were given to personal associates to do repairs and install equipment, which in some case resulted in inferior work and equipment being provided. Some contracts were awarded multiple times, in one case leading to a personal associate of a TCHC staff member receiving two million dollars when the cost of the work should have been significantly less.
The audit was particularly damaging in light of the neglectful handling of TCHC buildings that have fallen into disrepair.
Toronto mayor Rob Ford demanded the resignation of the board of TCHC and though initially defiant, as of March 3, 2011, all board members have resigned. Rob Ford called for the privatization of Toronto Community Housing Corporation. The feasibility of the privatization of TCHC was greeted with widespread scrutiny and skepticism; many housing and business experts felt that Ford underestimated the complexity of such a transition.
The board was been replaced on a temporary basis by former city councillor Case Ootes. Rob Ford was quoted at the time, as saying that a new board would be in place a month later.
Read more about this topic: Toronto Community Housing
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