City of Hamilton’s Fraud and Waste Hotline shows merit over five years

HAMILTON, ON – In its fifth year of operation, the City of Hamilton’s Fraud and Waste hotline has received 127 reports, the second highest volume ever received, indicating that the hotline continues to be a vital tool to increase transparency and accountability. 

Out of the 127 reports received by the City of Hamilton’s Office of the Auditor General (OAG) between July 1, 2023 to June 30, 2024, 33 per cent were found to be substantiated.

Thirteen new investigations were launched by the OAG from a wide variety of reports received, and the year’s estimated loss from fraud or waste was $2.35 million. This brings the total estimated loss or waste since the Hotline was launched in 2019 to $3.635 million.

“Without a Fraud and Waste Hotline in place, it is likely that many of these cases would have gone unreported and may never have been investigated by the Office of the Auditor General,” said Charles Brown, Auditor General. “The continued use of the Hotline indicates Hamiltonians and City employees alike share the commitment in protecting the City of Hamilton’s revenue, property, information and other assets and resources from fraud, waste and other wrongdoing.”

The investigations led to five terminations and 10 other actions, including discipline and resignation. The major themes or recurring issues cited in the report include the exposure to cyberfraud through email scams, which have incurred substantial losses, continuing challenges in the administration of conflicts of interest policy, City due diligence with respect to contract management and oversight, and fraudulent benefit claims.

Quick Facts:

• The Fraud and Waste Hotline launched in July 2019 as a pilot project and was made permanent by City Council in March 2023.
• The hotline continues to provide the public, City employees, contractors and vendors with a convenient, confidential and anonymous tool to report suspicion or proof of wrongdoing.
• The hotline also supports the City’s goal of managing instances of fraud and waste within the organization and operating with honesty and integrity.
• The Fraud and Waste Report supports Responsiveness & Transparency, a 2022-2026 Council Priority.