"Toronto city councillors are set to decide the fate of a contractor that intentionally overbilled the city more than $1 million, a breach of the supplier code of conduct uncovered by a forensic audit conducted for the city. Staff are recommending Capital Sewer Services Inc. face the maximum suspension Toronto can issue against suppliers that break the city's rules: a five-year contracting ban on it and all its affiliated companies."
"Capital Sewer intentionally overbilled the City of Toronto $1.1 million for a sewer rehabilitation project in York Centre, according to a forensic audit by professional services firm KPMG. The KPMG forensic audit was launched in July 2025, after the city's internal controls, as well as complaints to the auditor general's fraud and waste hotline, found irregularities in change orders throughout 2024."
A KPMG forensic audit found Capital Sewer Services intentionally overbilled the City of Toronto by $1.1 million on a York Centre sewer rehabilitation project. The forensic review began in July 2025 after internal controls and auditor-general hotline complaints revealed irregular change orders in 2024. City staff recommend the maximum supplier suspension: a five-year contracting ban covering Capital Sewer and all affiliated companies. Capital Sewer was awarded 31 city contracts worth about $220 million over the past five years. An ongoing audit will investigate whether additional financial deception occurred. City council will vote on the recommended suspension.
Read at www.cbc.ca
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