The Toronto Star
Jack Lakey
The Ministry of Housing is probing allegations that the former boss of a Metro union used provincially funded housing projects to provide jobs to family members.
Trevor Studden, the ministry's central region manager, said the government began an investigation yesterday into social housing operated by Labourers' International, Local 183.
"We are asking questions even as we speak," Studden said in an interview yesterday.
The union operates four social housing projects built with government loan guarantees, three of which were granted to Local 183 after Premier Bob Rae's New Democrat government was elected.
Michael J. Reilly, Local 183's business manager until he retired Feb. 9, signed the government application papers for those three projects, and was chairperson of the founding board of directors of each.
Reilly and Local 183 are among the NDP's closest supporters and most active fundraisers.
The Saturday Star outlined how Reilly's son, Michael Reilly Jr., was hired as director of a non-profit property management corporation set up by the union to oversee the social housing, at a salary of $60,000, without any job competition.
The story also detailed how Reilly's son-in-law, Sean McCann, was hired as superintendent of its Duncan Mills co- op at a yearly salary of $65,000, also without any competition.
The ministry's conflict-of-interest rules prohibit a board of directors from hiring family members. The rules also require that job competitions be held.
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