Toronto hires forensic accountant to probe 'improperly altered' charges from contractor

The City of Toronto is trying to find out how much it was overcharged by a general contractor working on several multi-million dollar projects, a confidential document obtained by CBC Toronto shows.

The city has hired KPMG's forensic accounting unit to look into the matter, which could cost taxpayers up to $120,000, according to a March 6 letter from KPMG to the city, also obtained by CBC Toronto. 

For now, neither the city nor the contractor – Duron Ontario Ltd. – has filed a lawsuit in connection with the matter, according to the document. However, the city's legal team is part of an investigation, the document shows.

In a statement issued Monday, a spokesperson said, "The City takes any potential instance of the misuse of funds very seriously."

CBC Toronto contacted Duron Ontario Ltd. on Tuesday and has yet to receive a response.This story will be updated if the company provides comment.

Head of the city's audit committee, Coun. Stephen Holyday, said councillors still have few details about the investigation. But it comes at a time when Toronto is grappling with a $1.5-billion budget shortfall.

"Every single penny counts around city hall because the city has no money," Holyday said. "And most importantly, maintaining the confidence in the government by citizens is paramount. That's why audits matter."

Meanwhile, the mayor's office said in a statement Olivia Chow is looking forward to seeing the result of the investigation. 

Chow "believes the city must use taxpayer funds wisely and knows the importance of maintaining public confidence in city services," the statement said.

The KPMG letter outlines what allegedly transpired between the two sides.

The city hired Duron Ontario Ltd., a Mississauga-based company that specializes in everything from building rehabilitation to waterproofing to pothole repairs, for at least six major projects in recent years, the document says.

CBC Toronto tracked down a number of projects worth over $37 million contracted to Duron and approved by the city, dating back to 2018.

City documents show Duron is renovating TTC stations and other city-owned buildings to make htem accessible and has previously worked on major projects like the renovations at Union Station. 

What hasn't been made public are the "change orders" that the company and various subcontractors and suppliers that work for it have filed with the city.