Hockey Canada says it will no longer use reserve fund to settle sexual assault claims

Hockey Canada says it will no longer use a fund maintained by membership fees collected across the country to settle sexual assault claims.

The national federation has been under intense scrutiny since May when it emerged the organization quietly settled a lawsuit filed by a woman who alleges she was assaulted while intoxicated by eight unnamed players, including members of the country's 2018 world junior team, following a gala event in London, Ont., four years ago.

Hockey Canada's so-called "National Equity Fund" came to light this week as it continues to deal with the fallout from its handling of the alleged assault and subsequent out-of-court settlement.

Details of the fund, which has not been listed as part of the organization's annual reports, are included in a July 2021 affidavit sworn by Glen McCurdie, who was then Hockey Canada's vice-president of insurance and risk management, as part of a lawsuit launched by an injured player in Ontario.

McCurdie's affidavit said "Hockey Canada maintains a reserve in a segregated account to pay for any such uninsured liabilities as they arise." It goes on to say that "uninsured liabilities include potential claims for historical sexual abuse."

Hockey Canada said in a statement Wednesday that, effective immediately, the fund "will be exclusively dedicated towards safety, wellness and equity initiatives, as well as insurance across our organization — activities which comprised 98 per cent of its resources between 2014 and 2021."

Meanwhile, authorities in London have ordered an internal review of their investigation into the alleged sexual assault. Police Chief Steve Williams said in a statement his department is looking to determine if any "additional investigative avenues may exist."

He added the original investigation, which concluded without charges in February 2019, was "lengthy and detailed."

Hockey Canada has seen its federal funding cut off and corporate sponsors pause financial support in the wake of the alleged assault and settlement that was first reported by TSN in May.

"Hockey Canada recognizes we have significant work to do to rebuild trust with Canadians," Wednesday's statement read. "We know we need to hold ourselves accountable. That is why we are beginning a full governance review of our organization that will be overseen by an independent third party.

"This will include the National Equity Fund."

WATCH l Government freezes Hockey Canada funding:

Hockey Canada CEO Scott Smith and predecessor Tom Renney will be back in Ottawa next week as MPs continue to press the under-fire federation for answers about the London incident and out-of-court settlement that has rocked the sport.

Smith, Renney, McCurdie and Canadian Hockey League president Dan MacKenzie are scheduled to testify in front of the Standing Committee on Canadian Heritage next Wednesday on Parliament Hill.