Keiko Nakamura, the embattled CEO of Toronto Community Housing Corporation, has been forced from her position following a spending and expense scandal.
Nakamura, who had previously refused to step down from the board, will officially depart on March 25.
The move comes at the request of Case Ootes, the Rob Ford-backed interim managing director at the TCHC. He recently started three-month contract to manage the TCHC and this was his opening move.
Mr. Ootes said in a press release that, in light of the spending scandal and a report from the city's Auditor General, a "fresh start" was needed.
"I have concluded that because of recent events, Ms. Nakamura continuing as CEO would be a substantial distraction for the corporation in its efforts to provide affordable housing to low and moderate income residents," said Mr. Ootes.
The decision appears to put an end to a weeks-long battle over the public housing agency, which found itself embroiled in a spending scandal following the release of an auditor's report.
Most of TCHC's board members resigned two weeks ago after an auditor's report revealed between $4 million and $10 million was wasted on sole-sourced contracts.
The report also revealed issues with record-keeping at the agency and found that $200,000 was misspent on luxury chocolates, spa trips and a Christmas party.
