The CEO and an employee of Toronto Community Housing (TCH) have been put on administrative leave amid an investigation into the awarding of a nearly $1.3-million contract, which officials called a “flawed process.”
In a statement released by the social housing provider Monday afternoon, it said an external firm will conduct an “independent, third-party review” into a contract awarded to the management consulting company Orchango.
“The Toronto Community Housing Corporation (TCHC) Board of Directors has learned the process to award the RFP to Orchango was flawed and did not follow existing TCHC regulations. We hold ourselves to higher standards and, as a result, the Board has directed TCHC to terminate the contract with Orchango effective immediately,” the statement said.
“As the review into this matter is ongoing, current CEO Kathy Milsom and the employee who oversaw this RFP process have been placed on administrative leave. This is not disciplinary action, but part of a prudent effort to ensure the independence and integrity of the ongoing review.”
A spokesperson told Global News the business was supposed to provide consulting services to TCH as it goes through a reorganization process. The spokesperson said the company provided services between April and November. Although the contract has been terminated, Orchango received a monthly fee of around $57,000 while the contract was still in force.
Another spokesperson said the total contract was worth “just under $1.3 million” over three years.
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According to bid documentation posted online, it said the successful company would be required to provide advice on executing the 2018 business plan, changing organizational culture, developing a strategy “to multiply TCH’s change capabilities,” and strategic planning for 2019.
Sheila Penny, a vice president with TCH, was named acting president and chief executive officer on Monday.
Global News attempted to contact Milsom for comment, but a response wasn’t received as of late Monday afternoon.
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