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Toronto Community Housing CEO fired after investigation into consulting contract

Kathy Milsom has been fired as TCH CEO following a review into the procurement of a contract with a management consultant company.
Kathy Milsom has been fired as TCH CEO following a review into the procurement of a contract with a management consultant company. TCHC/Twitter

Kathy Milsom, CEO of Toronto Community Housing (TCH), has been fired following an independent third-party review into a contract awarded to the management consulting company Orchango.

TCH’s board of directors said in a media release on Thursday that Milsom’s conduct did not meet the public housing corporation’s standards.

“This conduct included overseeing an RFP process that did not comply with the procedures and protocols expected of a public procurement process and failing to fully cooperate with the investigation that has led to this independent report,” a statement released by TCH’s board of directors said.

READ MORE: Toronto Community Housing CEO, employee put on administrative leave amid contract investigation

Orchango was supposed to provide consulting services to TCH as it goes through a reorganization process. The company provided services between April and November 2018. Although the contract has been terminated, it received a monthly fee of around $57,000 while the contract was still in force.

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The contract was worth just under $1.3 million over three years.

According to bid documentation posted online, 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.

READ MORE: Paramedics host drop-in clinics in Toronto Community Housing buildings

Milsom, along with an employee who oversaw the RFP process, were placed on administrative leave last December when the investigation was launched.

TCH vice president Sheila Penny, who assumed the role of acting CEO, will continue to do so until April 3. Kevin Marshman, the current TCH chair, will take over the position full-time after that.

“Mr. Marshman has a strong track record serving TCHC, both as a member and then Chair of the Board as well as interim CEO in 2017,” the statement said.

“Going forward, job number one remains to continue to change the culture at TCH to better the lives of our tenants.”

Toronto Mayor John Tory issued a statement on Thursday in support of the public housing corporation’s decision.

“I firmly believe that everyone involved in the good governance of City agencies must be held to the absolute highest standards,” Tory said.

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“The Toronto Community Housing board has taken decisive action and I believe the board has made the right decision.”

TCH is the largest social housing provider in Canada serving 111,000 people in 2,100 buildings across the city.

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— With a file from Nick Westoll