EVERETT, Mass. -- Several city employees were off the job in Everett Monday after millions of dollars disappeared.

NewsCenter Five's Todd Kazakiewich reported that Everett city councilors and alderman gathered Monday to hear the results of an eight-month, independent audit of accounts that cost taxpayers $60,000 -- an figure that pales in comparison to alleged fraud that has taken place in the city over the past five years which amounted to $5 million in losses.

"I've been involved in the city for over 40 years, both as an alderman and a city clerk, and have never heard of anything this bad," Everett Mayor John Hanlon said.

Hanlon said many city contracts were awarded without going to bid and the city couldn't find paperwork for some contracts or even written bids for them. Further, Everett paid in full for unfinished work and, in some cases, overpaid.

One example of the problems was that the city needed to replace a fire hydrant and bid for the work was for $1,600, but the bill came in for $4,200, and the city paid it.

The audit alleged that three companies exploited the city. They were J. Marchese and Sons, GTA Landscaping Inc. and Everett Supply Co. As a result of the investigation, Everett has fired two city workers and suspended five others, including city fleet manager Tony Latorelli.

"Maybe there are people that did wrong. I'm not one of them. And I resent having my name on a public document, slandering me," Latorelli said.

The five city workers were suspended indefinitely without pay.

The alleged fiscal mismanagement happened under the administration of former Mayor David Ragucci, who is now the town manager in Stoneham, Mass., and did not return WCVB's calls for comment.

It is unclear whether Everett will ever be able to recoup its $5 million loss.