Toronto City Employees Caught Stealing Packages, Faking Sick Days to Work Second Jobs
If you've ever suspected that some bureaucracies run on more than just paperwork, Toronto's auditor general just confirmed it. The 2025 annual fraud report, which went before committee last week, details a pattern of employee misconduct that ranges from petty theft to attempted multi-million-dollar scams.
The highlights — if you can call them that — are grim.
The Package Thief
Over a two-year period, $21,100 worth of packages went missing from mailrooms at City of Toronto facilities. An investigation traced the thefts to a single employee, who ultimately repaid the city and resigned. No criminal charges were laid.
Twenty-one thousand dollars in stolen mail. From a government building. Over two years. The fact that it took that long to catch is almost more concerning than the theft itself.
The Sick Day Hustle
The report also flagged employees who were using city sick days to work second jobs. The auditor general's office found cases where employees called in sick repeatedly, only to be found working elsewhere during those same hours. It's the kind of scam that everyone jokes about but apparently actually happens.
The $2.5 Million Near-Miss
Perhaps the most alarming finding involves an attempted electricity fraud from 2019 that nearly cost the city $2.5 million. A retired city employee's credentials were used to sign contracts with third-party energy retailers instead of Toronto Hydro. The city caught it before the money went out the door, but the fact that it got that far is a red flag.
The Banned Contractor
Capital Sewers Services Inc. received a five-year ban from bidding on City of Toronto contracts after a forensic audit revealed the company intentionally overbilled the city by more than $1 million.
By the Numbers
In total, the city lost $4.5 million to fraud-related complaints in 2025, though $4.4 million of that was tied to a single division that administers government subsidies. The city recovered $9,000 and avoided $38,000 in potential losses as a result of the auditor's work.
Small recoveries relative to the losses — but at least someone is watching. The full report is available on the Toronto Auditor General's website.
