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February 19, 2009
City of Toronto removes staff alleged to be involved in employee benefits fraud from the workplace
The City of Toronto has removed nine employees that are alleged to have submitted fraudulent claims for benefits under the City's employee benefits plan from the workplace.

The City takes very seriously every instance of alleged wrongdoing in the organization and investigates all such allegations. The City is working closely with Manulife Financial and the Toronto Police Service has been informed of the matter.

Manulife Financial, the City's administrator of employee benefits has advised the City of alleged wrongdoing involving employee benefits claims made by nine City staff. Manulife Financial discovered the alleged wrongdoing through the audit process that it has for City employee benefit claims. The City of Toronto immediately commenced an investigation which resulted in these suspensions and Manulife Financial has turned over its evidence to the Toronto Police Service.

City employees have a benefits package that is administered under a service agreement with Manulife Financial. Manulife Financial administers the benefits on behalf of the City and the City pays for the cost of these benefits. Manulife has an internal audit system and conducts regular audits. The City will review this matter with Manulife Financial to ensure that Manulife continues to have proper monitoring controls over employee benefits.

These allegations are a great disappointment to the City, however the vast majority of the City's employees work diligently on behalf of the people of Toronto, delivering vital services and programs on a 24/7 basis and doing so with the utmost professionalism, integrity and commitment.

Where a City employee is involved in a matter where evidence is found to substantiate an allegation of fraud, the City will take immediate and appropriate disciplinary action and will do so in this case.

Media contact:
Kevin Sack, Director, Strategic Communications, 416 397-5277 (office), 416 919-6500 (Cell)



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