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Ontario Provincial Police says its anti-rackets branch will investigate a company that received funding from the provincial government and was also connected to the controversial Skills Development Fund.
Keel Digital Solutions, a software company that provides a platform for mental health care, has been receiving funding from the Ministry of Colleges and Universities (MCU) for student mental health.
“The OPP Anti-Rackets Branch has completed its review and will be proceeding with an investigation,” the OPP said in an email on Monday.
In November, the Doug Ford government asked the OPP to investigate the company after a routine audit two years prior identified “irregularities,” the premier’s office said at the time.
A routine audit led to a forensic audit and the result of that forensic audit led to a review of the company.
Also in November, Keel Digital Solutions confirmed that it was the subject of the province’s forensic audit and that it received MCU contracts. The contracts are yearly transfer-payment agreements with the ministry that enabled it to deliver campus mental-health supports. It has held MCU agreements since 2020–21.
Company says it has complied with ‘contract obligations’
In a statement on Monday, the company defended its record.
“Keel remains steadfast in its assertion that it has complied with all laws and contract obligations,” Jay Fischbach, chief operating officer for Keel Digital Solutions, said in the statement.
“We welcome the OPP and will be completely transparent and cooperative. We look forward to the government’s apology at the end of this; and we remain focused on facilitating mental health supports for the province’s most vulnerable communities.”
Keel Digital Solutions has been closely scrutinized at the legislature in recent weeks as a recipient of the Ministry of Labour’s controversial $2.5-billion Skills Development Fund.
Keel received about $7.5 million in fund grants over the fourth and fifth funding rounds for a first responder mental health program.
Ontario Labour Minister David Piccini administers the $2.5 billion Skills Development Fund, which has been mired in controversy. (Bobby Hristova/CBC )
Ontario Labour Minister David Piccini administers the 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.
The auditor general’s report found the minister’s office has been heavily involved in selecting projects under the fund, doling out money to applicants ranked low by bureaucrats.
Piccini has said Keel Digital Solutions is one applicant that received a lower score.
Audit recommended referral to OPP: premier’s office
According to the premier’s office, the forensic 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 in November. “All payments associated with this provider are currently under review, and further actions will be taken based on that outcome.”
In November, the Doug Ford government asked the OPP to investigate Keel Digital Solutions after a routine audit two years prior identified ‘irregularities,’ the premier’s office said at the time. (Nathan Denette/The Canadian Press)
In November, the company said it “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),” Ahad Bandealy, spokesperson for Keel Digital Solutions, said at the time.
“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.”
The company has said it believes the government is conflating the two different sources of funding from different ministries “for the sole purpose of distracting from a self-inflicted mess” when it comes to the Skills Development Fund.
Opposition raises questions about government’s role
In a statement Monday, the Ontario Liberal caucus said it wonders “why the government continued giving Keel Digital Solutions tens of millions of dollars through the Skills Development Fund after a routine audit was escalated to a forensic audit.”
The Liberals called on the government to disclose the date that the routine audit was completed and flagged for a forensic audit, pinpoint the date that the forensic audit started, and disclose how much public money the company received after it was flagged.
Ontario NDP Leader Marit Stiles, for her part, called on Ford to fire Piccini.
“Let me be clear: Premier Doug Ford is responsible for this farce. He can’t ignore the calls to fire this minister any longer. He needs to fire his minister, now.”