Ontario sues company connected to Skills Development Fund for $25M

The Ford government is now suing the company at the centre of the Skills Development Fund controversy – Keel Digital Solutions – alleging fraudulent misrepresentation.

Opposition leaders say the money should never have gone to the company in the first place.

In its 43-page statement of claim, the Ford government alleges Keel Digital Solutions and its subsidiary Get-A-Head “made false and deceitful misrepresentations.” Also claiming the company engaged in “obstruction of audits and investigations” – saying it all amounts to “breaches of contract.”

The lawsuit demands repayment of more than $25 million that was given to Keel by the Ministry of Colleges and Universities and the Ministry of Labour.

The money was for student and first responder mental health programs, but the suit alleges Keel inflated the number of counseling sessions, resulting in millions of dollars of overpayment.

“The lawsuit at least gives the government a little bit of ground to stand on and say hey, we’re trying to get your money back,” said Keith Leslie, former Queen’s Park correspondent.

In a statement, Keel promises a counter suit and strongly denies wrongdoing: “Keel Digital has never been involved in any fraudulent activity, and we fully expect the government of Ontario to be compelled to retract its claims, apologize, and answer for the recklessness and malice that drove this case.”

The labour ministry money came through the controversial Skills Development Fund – overseen by Labour Minister David Piccini – who has been the focus of allegations of corruption by opposition leaders.

That’s because Piccini approved the money for Keel, despite a civil servant’s assessment that the company’s application was not strong.

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Piccini also attended the wedding of a Keel lobbyist in France in October and sat beside a director of Keel at a Leafs game in January 2023.

“The fact that this company was picked out as a low rank candidate and the labour minister himself interfered to get them to a higher ranking, to get them some of the money, the fact that they also got money out of the Ministry of Colleges and Universities, shows that they’re very good at this — but that the government was not doing proper oversight,” said Leslie.

Opposition leaders say the lawsuit is cover for the bigger problems.

“The lawsuit is the government trying to cover up what’s happened in the Skills Development Fund,” said John Fraser, Ontario Liberal house leader.

Fraser says the government’s ordering of a forensic audit of Keel after concerns were raised in 2023 should have stopped the flow of money.

“You continued to give them money. And the Minister of Labour gave them more money that they’re trying to get back right now just because his close personal friend was the lobbyist. He said he intervened on behalf of Keel Digital Solutions,” said Fraser.

“The money should have never gone to this company in the first place. The fact that you have the Minister going to Paris weddings and Leafs games with representatives of this company, that is not how funding decisions should be made,” said Mike Schreiner, Ontario Green Party leader.

“The time when the government should have been looking at Keel Digital Solutions was a few years ago before they gave them another $7 million of funding as part of the Skills Development Fund. It looks like now they’re just covering their tracks and they’re trying to make themselves look good but the stink is here,” said Jessica Bell, Ontario NDP MPP.

In early December the OPP revealed it’s investigating Keel after the Ford government referred the matter to them in November — recently after the second audit wrapped up.

Piccinni has denied any wrongdoing and the Premier Ford has stood by his minister amid calls for his resignation.

READ MORE: Ontario sues Skills Development Fund-linked company over alleged fraud