Toronto Community Housing CEO ousted following investigation into management contract

The CEO of Toronto Community Housing has been ousted from the job following an external probe into the procurement of a contract with a management consultant agency.

Kathy Milsom will "cease to be CEO, effective immediately," according to a statement released Thursday morning by the TCH board. She had been placed on administrative leave last December pending the outcome of the probe.

TCH hired the firm Bennett Jones to investigateconcerns stemming from a request for proposal (RFP) process that awarded management consulting services to Orchango.

The board has concluded that Milsom's"conduct throughout this process did not meet the high standard that we set for ourselves. This conduct included overseeing an RFP process that did not comply with the procedures and protocols expected of a public procurement process and failing to fully cooperate with the investigation that has led to this independent report."

TCH Vice President Sheila Penny, who had been placed in the role of acting CEO, will remain in that position until Apr. 3. At that time, the current TCH board chair, Kevin Marshman,will take over as full-time CEO, the statement said.

"Going forward, job number one remains to continue to change the culture at TCH to better the lives of our tenants," the statement went on.

"We are squarely focused on their needs and on implementing an aggressive building repair program to improve their homes and communities."

Mayor John Tory said in a statement that in his view, the TCH board "has made the right decision," and that he has already met with Marshman.

"I firmly believe that everyone involved in the good governance of City agencies must be held to the absolute highest standards," Tory said.

"While this situation has been disappointing, our residents should know that we remain focused on changing the culture at TCHC to better the lives of tenants and continue the aggressive building repair program underway."

Marshmanhimself said he is committed to continuingTCH's"focus on organizational culture change to better serve our tenants.

"As CEO, I will be focused on making tangible improvements to tenants' living spaces, tenant service levels and tenants' needs not only to improve their lives, but also the standing of TCHC as a more responsive organization," he said in TCH's news release.