TCH's CEO placed on administrative leave as external firm investigates contract

Toronto Community Housing's board of directors says the organization's CEO is on administrative leave as an external firm conducts an independent, third-party review into the procurement of a contract with a management consultant agency.

Another employee who oversaw the request for proposal (RFP) process with Orchango has also been placed on administrative leave, the board added.

"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," the board said in a media release.

"We hold ourselves to higher standards and, as a result, the Board has directed TCHC to terminate the contract with Orchango effective immediately."

Placing CEO Kathy Milsom on administrative leave wasn't a disciplinary action, the board added, saying it was "part of a prudent effort to ensure the independence and integrity of the ongoing review."

Vice President Sheila Penny will be the TCH's acting president and CEO effective immediately, the board said.

Mayor John Tory said he believes the board made the right decision.

"The Toronto Community Housing board has taken decisive action," he said. "The good governance of all city agencies is essential and requires that everyone involved with these organizations is held to the highest standards.