A City of Ottawa employee has been charged with accepting a bribe, breach of trust and fraud after an investigation by the auditor general was turned over to Ottawa police.
Police also charged a landlord with bribing a municipal employee, along with joint charges for breach of trust and fraud over $5,000.
Police and city officials did not release the names of the two people charged in the alleged “kickback scheme.”
The case involves allegations that a City of Ottawa case worker — identified only as “Employee A” — received kickbacks from landlords in exchange for favourable rental rates under city housing programs.
Auditor General Nathalie Gougeon
outlined the initial allegations in a report
to the city’s audit committee in December, 2024.
The auditor general’s office “has since cooperated with the Ottawa Police Service in their investigation and shared any information required to be produced via production order,” according to a May 6 news release announcing the criminal charges.
According to the report, the allegations were first raised through the city’s fraud and waste hotline (FWHL) and the tip contained “serious allegations of wrongdoing.”
The auditor general “promptly” informed the city solicitor, city managers and Ottawa police.
The auditor general first started a preliminary investigation, and, following discussions with police, “formally launched a full investigation.”
The hotline report alleged the city case worker “had received kickback payments from a group of landlords in exchange for these landlords receiving more favourable rental rates under specific housing benefit programs administered by the city.”
The alleged “kickback payments” began in January 2024, though the landlords received more favourable rental rates starting in approximately October 2023, according to the report.
Both of the accused were released with conditions and a promise to appear in court at a later date, according to police.
The auditor general said she will not comment further while the case is before the courts.
More to come…
