The Ontario government has taken legal action against a company it contracted to oversee a student mental health initiative, accusing them of deceitful practices and aiming to recover over $25 million in public funds.
The lawsuit targets Keel Digital Solutions, associated with the controversial Skills Development Fund, for alleged misconduct in a separate agreement with the Ministry of Colleges and Universities.
Additionally, the Ontario Provincial Police are looking into an audit of Keel’s funding following a referral from the government.
The lawsuit asserts that Keel provided inaccurate corporate performance reports between 2022 and 2025, leading to substantial overpayments by the government.
Among the allegations are that Keel misrepresented expenses, failed to disclose unspent funds, interest earnings, and tax information, as well as attempted to conceal these actions.
While these claims have not been proven in court, Keel has stated its compliance with all legal and contractual obligations.
Keel Digital Solutions drew criticism during a recent legislative session for its involvement in the Skills Development Fund, which has faced scrutiny for lack of transparency.
The Minister of Labour, David Piccini, faced calls for resignation due to his ties to Keel, though both he and Premier Doug Ford deny any impropriety and affirm their support for the Skills Development Fund.
Ontario’s integrity commissioner is investigating Piccini’s connections to the fund, particularly in light of reports suggesting favoritism towards fund beneficiaries associated with the Progressive Conservatives.
The auditor general raised concerns about the fund’s selection process, highlighting instances where lower-scoring applicants secured approval after hiring lobbyists, prompting accusations of biased treatment.
The Skills Development Fund aims to assist organizations in hiring, training, and retraining workers, boasting successful job placements for thousands of individuals.