The Toronto Parking Authority (TPA) bungled a $4-million security contract that's left taxpayers on the hook for about $500,000 in extra costs, all the while putting the public at risk at a handful of city owned parking lots, internal city emails suggest.

The city-run agency denies any financial wrongdoing or that it's jeopardizing public safety, but emails and documents obtained and reviewed by CBC Toronto raise questions about how the agency is conducting business.

In 2016, the TPA signed a new four year, $4-million contract with security company G4S to patrol city-owned parking lots and provide security to staff, the public and their vehicles. The TPA claimed the new contract would cut its security costs by 25 per cent.

But according to the internal emails, which were released under the Municipal Freedom of Information Act, TPA authorities soon claimed G4S couldn't meet the city's needs. Instead, the TPA had to recall its original security provider to bail it out and make up for the alleged shortcomings in security.

The recall has cost at least $466,000, according to allegations outlined in the city emails.

TPA security company in 'non-compliance,' email claims

In one internal email, the TPA's own officials accused G4S of being in "non-compliance" with the contract. For example, G4S didn't even have a "live" dispatch centre, as was required, to respond to active emergencies or calls for assistance.

In another email, former TPA president Lorne Persiko said the agency needed its former security contractor, Intelligarde, to bail it out.

Despite asking Intelligarde to come back to the table and help, the TPA has refused to pay the company — twice. Intelligarde says the outstanding bills since 2016 totalled $466,000 plus interest.

In June 2017, Intelligarde president Ross Mcleod emailed Persiko to notify him of the non-payments.

"Intelligarde will always be there for The Authority in the event of emergency, special or surge needs. However with a receivable well over 300K I am out over my skis with my credit line and a payroll looming," wrote McLeod.

The TPA eventually paid the outstanding bill, but racked up another $166, 000 tab with Intelligarde. Throughout all of this, the TPA was also paying G4S about $1 million a year.

Intelligarde security guards Fartous Feizi, left, and Evren Artis receive bravery awards on Sept., 23, 2018 for apprehending and disarming gunmen at the Dundas Square parking garage. The TPA still hasn't paid for their work.

By January 2018, emails reveal the TPA was still relying on Intelligarde "24/7" as a "stop-gap" measure to shore up security needs.

The emails also show some busy public parking lots were identified by the TPA as being "especially problematic."

Lax security at Yonge-Dundas public parking lot

The worst, the emails show, was the Dundas Square parking lot.

"Complaints of frequent trespass to property, mischief-property, alcohol/drug use, loitering and violence are common place day and night," warned Bob Kretschmer the city's manager of Health&Safety/Corporate Security in an email to the TPA .

In one incident, Intelligarde guards arrested two men armed with guns who were using drugs in a stairwell at that parking lot. Police determined the suspects were about to pull an armed robbery of a nearby business.

The two Intelligarde guards were recently honoured for their bravery by Toronto Police.

Despite the guards' heroics, the TPA still hasn't paid Intelligarde for that work.

Ross Mcleod, president of Intelligarde Security, says he's still owed about $166,000 by the Toronto Parking Authority.

"I can't explain it. It's inexplicable. For whatever reason you want us gone — just pay us and send us along. We left with the $166,000 still owing, and they wouldn't even answer our emails or phone calls," Intelligarde's McLeod told CBC Toronto.

Intelligarde had provided security to the TPA for 27 years without complaint, he added.

Things changed in 2016, Mcleod said, when he heard the TPA wanted to review the security contract and put out a request for proposal or RFP for other companies to bid.

"Sure enough, that prophecy came true in a matter of a couple of months," he added.

The TPA cut its ties with Intelligarde and chose G4S after shortlisting three companies for the contract.

TPA execs fired after police probe land deal

This isn't the only financial complaint being levelled against the TPA.

TPA president Lorne Perskiko and vice president Marie Casista were both fired in April amid a police probe involving a controversial land deal.

According to the allegations, the TPA appeared ready to overpay, by about $2.6 million, for a strip of land in Toronto councillor Giorgio Mammoliti's ward.

Mammoliti and several executives from the TPA pushed hard for the deal to go through, according to a report commissioned by the city.

The 38-page report by law firm Torys LLP claims Mammoliti "made direct express threats" to city staff, insisting a city agency should pick up the $12-million tab to buy the land at 1111 Arrow Rd. near Finch Avenue West and Highway 400.

Mammoliti, who represents the former Ward 7, York West, wanted to build a massive flagpole on the land as a "gateway" to his ward, the report notes.

In an email to CBC Toronto, Mammoliti has dismissed the report's allegations.

"There is nothing new in the report. I have spoken on this issue many times," he wrote.

"It is nothing more than the usual smear talk before an election."

TPA execs urged to settle up

Internal emails show that after months of requests for payment, the Intelligarde matter still remains unresolved.

According to the internal emails reviewed by CBC Toronto, the TPA's acting president Andy Koropeski and chief financial officer Robin Oliphant have been asked repeatedly to settle the $160,000 still owing to Intelligarde.

Neither Koropeski or Oliphant would agree to speak with CBC Toronto about the financial issues. Nor would a city spokesperson answer any specific questions.

In an emailed statement, city spokesperson Tammy Robbinson denied the public has been placed at risk. She also said the city is reviewing the outstanding $160,000.

"The Toronto Parking Authority has concerns with respect to the remaining invoices and is continuing to exercise due diligence, in consultation with the City Solicitor, to ensure that the amount of money invoiced represents the services rendered," Robbinson's statement reads.

She said the review is expected to be completed shorty. Meanwhile the city is also reviewing the TPA's "security strategies, plans and deployment including contracted security services," she wrote.

Still, an internal email written by Kretschmer, the city's health, safety and corporate security manager, in June blasts the TPA for its handling of the Intelligarde situation.

"Quite frankly, after 20 years of dedicated service I think it is unconscionable that the TPA would take this course of action... quite frankly I am embarrassed" Kretschmer told Koropeski and Oliphant.

John Lancaster can be reached at 416-205-7538 or at john.lancaster@cbc.ca