Gravy found! Some of the juiciest bits of fat in the TCHC audit will get in the way of the real scandal
By now the whole city knows the story of the city’s auditor general’s report [PDF] on the Toronto Community Housing Corporation, and how mayor Rob Ford has called for the non-elected members of the TCHC board to resign. The stuff that has gotten the most play in the news accounts of the reports includes:
- More than $90,000 for Christmas dinners in 2008 and 2009
- $1,000 in Holt Renfrew chocolates
- $6,000 for a Muskoka getaway
- $5,000 in one restaurant in 2009 alone
All told, bad expensing may have cost TCHC $200,000 a year. But while this is, as we say, the talking-point fodder that Rob Ford needed to refresh his “respect for taxpayers” verbal arsenal, the real scandal is in the details that probably won’t get as much attention, if only because they’re less obviously and comically wasteful. That includes stuff like:
- An MFP-like story of a Chinese contract for fluorescent light bulbs that turned in to a $5-million purchase of a plethora of renovation needs (sinks, tile, faucets, etc.)
- A sole-sourced $25-million contract based on a vendor pitch
- Staff deliberately splitting up orders to come under less scrutiny for purchases (a big no-no)
The auditor general estimates that this stuff—the drier and more mundane accounting issues—cost the TCHC somewhere between $4 and $10 million, or at least 20 times what the inappropriate staff expenses cost the city. And that’s a conservative estimate. Because this stuff doesn’t lend itself to quick, bumper sticker–style outrage, we expect that it won’t be as widely discussed as Thousand-Dollar! Muskoka! Getaways! But hopefully that won’t get in the way of solving both problems.
• Procurement Policies Are Not Being Followed (PDF) [Auditor General of Toronto]
• Controls Over Employee Expenses Are Ineffective (PDF) [Auditor General of Toronto]
• Ford calls for purge at housing agency after auditor finds misspending [Globe and Mail]
• Chris Selley: Housing Corp.’s spending the gravy Ford was looking for [National Post]
(Image: Naval History & Heritage Command)
this is annoying. i work in the private sector, where our christmas parties cost more (how many people were at that $50,000 party?), our perks and expenses cost more, and when anyone complains about ceos getting huge bonuses when they are let go for incompetence, we are told “you need to reward people or you won’t be able to attract & retain the most talented.” i am not personally high enough up the ladder to have an expense account, but i really think that begrudging someone a birthday party because they have chosen to work in public housing (where they are no doubt making less than they would in a private sector job) is just plain mean. $200,000 on perks is not actually a lot – less than a tenth of a percent of their annual budget. the cost of getting audited? $248,810. was that worth it?
the sole-source contracts, however, are another story. that kind of practice is totally unacceptable.
smartygirl,
TCHC is using taxpayer money to live it up. Your privately owned company can do whatever they want, I don’t care. After all…it’s not my hard-earned money that will take part.
There needs to be greater transparency and accountability to exactly where our taxes go and how the money is spent. No one says that you can’t throw a co-worker a party, but don’t be dipping into your expense accounts to do so. Pay for it out of your own pockets if you want to be a good employer/friend/coworker.
Hayden,
If the perks and salaries are cut from public corporations then how do you convince people to work there? A burning desire to do a job for little reward under constant scrutiny? Sounds like a good way to amass a public service sector with no skills.
People who are worth a damn don’t go for a job because they get to on training aboard luxury cruise ships or throw expensive parties. I’m not saying that people shouldn’t be compensated for their work, but what TCHC has done is excessive.
I show up for work, get paid, get my medical/dental benefits, standard vacation and a personal satisfaction.
I work at Ontario Power Generation (a public company) and we don’t get these kinds of “perks”. We don’t get to go on a luxury cruise ship for training…we go to a stuffy classroom in Atlanta, Georgia and stay in small hotels. We pay for our own lunches when we have group gatherings and have to make up the time afterwards.
A way to amass a public service sector with no skills? Please…everyone is replaceable. You don’t care enough about your job?…there are 10 other people behind you, more motivated and likely more capable as well.
results.
what results were these people producing to warrant “perks”.
you get a perk for going the extra mile. not for merely doing your job.that’s what a salary is for.
did these people have a background in property management?
just exactly what were their qualifications?
with any luck Ford will turn every department upside down and shake all the chaff loose. I want to see an end in doubble dipping for cops and teachers also. there are 400 double dipping teachers in ontario. what warrants that?
did they have more literate and mathematicly capable students? we don’t need a culture of entitlement anywhere.
ceo’s with golden parachute?…what a joke. the guy gets fired and they still give him a prize…what a joke.
I used to work for the government and am amazed as to how the organization is run. If I ran my home the way they did I would have file for bankruptcy long time ago. Ten years ago, the offices of TCHC was divided into about 27 smaller offices throughout the city on the grounds that the community needed more convenient and better services. New offices were constructed, furniture bought, positions were created etc. Five years later, a reorganization took place reducing the number of offices and once again offices were constructed (the old ones made redundant); millions of dollars wasted. New positions are created and relatives of management are given the positions. Congrats to Rob Ford but he needs to do a further shake up of TCHC.
Keep in mind that it’s not necessarily what’s in the auditor’s report that reveals the true scandal. An auditors report can’t show us any bribes or payoffs related to the sole-source contracts that have taken place. Let’s think clearly for a moment… What would be the real motivation for sole-sourcing million dollar contracts without an open-tender? Greed, money, goods?? Let’s face it, there’s likely more going on here than meets the eye and more than we will ever know or be able to comprehend.