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

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.

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."

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.