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Ontario asks OPP to investigate recipient of Skills Development Fund after forensic audit

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The Doug Ford government has asked the Ontario Provincial Police to investigate the findings of an audit of a company that received grants from the province’s Skills Development Fund.

A routine audit of an “external service provider” raised concerns two years ago, the premier’s office said in a statement on Wednesday.

That audit identified “irregularities,” which in turn prompted a “comprehensive forensic audit” of the company, the premier’s office said.

Keel Digital Solutions, a software company that provides a platform for mental health care, confirmed in a statement on Wednesday that it was the subject of the province’s forensic audit and that it received money from the fund.

Ontario Labour Minister David Piccini administers the $2.5 billion fund, which has been mired in controversy for weeks.

Ontario Labour Minister David Piccini, pictured here, administers the Skills Development Fund, which has been mired in controversy for weeks. (Bobby Hristova/CBC )

In October, Ontario’s auditor general said in a report that the selection process for grants from the fund was “not fair, transparent or accountable.” The fund, which aims to spur economic growth, provides funding to organizations for projects that address challenges to hiring, training, or retaining workers.

According to the premier’s office, the government received the results of the forensic audit last week and the audit recommended that the matter be referred to the OPP.

“Within 24 hours of receiving this report, the referral was made,” the premier’s office said.

“All payments associated with this provider are currently under review, and further actions will be taken based on that outcome.”

OPP review will confirm ‘our integrity,’ company says

Keel Digital Solutions defended its record following the news from the premier’s office.

Ahad Bandealy, spokesperson for Keel Digital Solutions, said the company “cooperated fully and transparently” with the province’s forensic audit.

“We have serious concerns about the process, which showed persistent misunderstandings of corporate vs. not-for-profit structures and misinterpretation of tax rules (e.g., input tax credits and relevant federal programs),” Bandealy continued.

“Throughout the review, we were repeatedly told no irregularities or ‘red flags’ had been identified that would preclude continuing the government’s partnership with Keel.”

Keel Digital Solutions said the government should have talked to the company before releasing its statement on Wednesday.

“This has required us to respond to incomplete and potentially misleading information through media channels rather than directly with the government,” Bandealy said.

Bandealy said Keel Digital Solutions has not been informed of any OPP investigation.

“If one is initiated, we will cooperate fully and professionally. We are confident an objective review will confirm our integrity and the quality of our compliance practices.”

A view of Queen’s Park is shown here. (David Donnelly/CBC)

Keel Digital Solutions said its platform has provided more than 200,000 mental health sessions for post-secondary students across Ontario since it was first set up.

Opposition leaders call on Ford to fire minister

Opposition leaders, however, say this latest development involving the fund shows that government accountability is lacking. They called on Ford to fire Piccini for his handling of the fund, something they have been calling since the auditor general’s report was released.

Ontario Liberal MPP John Fraser said Piccini should explain what has happened here and this latest development raises many questions.

“If he was working for me, he wouldn’t be doing what he’s doing right now. He wouldn’t be a minister any longer,” Fraser said on Wednesday. “This thing is a rotten mess and we need to get to the bottom of it.”

Fraser said there should be a forensic audit of the fund itself.

Liberal MPP John Fraser attends Question Period at Queen’s Park in Toronto on Tuesday, May 13, 2025. (Cole Burston/The Canadian Press)

‘Trust has been broken,’ opposition leader says

Ontario NDP Leader Marit Stiles, in an open letter to Ford, said: “Ontario can and should manage this fund, as other provinces do, with transparency and accountability, and ensure that every dollar goes to creating good opportunities for workers.”

Stiles added: “I am deeply concerned by the lack of due diligence conducted by this Premier and this government before handing over millions of taxpayers dollars to this company.”

Ontario Green Party Leader Mike Schreiner also called for Piccini’s resignation, saying it’s another example of the Skills Development Fund being a slush fund for the government. He said the government needs to fix the fund and make it fair, transparent and accountable.

“Mr. Puccini needs to step down or if he’s not going to resign, then Doug Ford needs to remove him and find a new minister. Trust has been broken.”

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