Premier Doug Ford’s government is suing Keel Digital Solutions for $25.9 million — alleging “deceitful misrepresentation” and “obstruction of audits” related to taxpayers’ money given to the company by his administration.
A lawsuit filed in the Ontario Superior Court of Justice seeks repayment from “breach of contract” from $22.3 million from the Ministry of Colleges and Universities and another $3.2 million from the Ministry of Labour plus $400,000 in punitive damages.
It claims Keel, which says it does peer mental-health training to students through the Ministry of Colleges and Universities and first responders through the Labour Ministry’s Skills Development Fund (SDF), provided “false and misleading” claims related to its performance, expenses or unspent funds.
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The allegations have not been proven in court.
In a statement Friday, Keel chief operating officer Jay Fischbach called the lawsuit “deeply flawed, built on misstatements and outright inaccuracies.”
“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,” Fischbach wrote.
“We caution the media to be careful with their reporting; an accusation is not proof of anything. A counterclaim is forthcoming.”
The lawsuit has renewed calls for Labour Minister David Piccini’s firing who, as first revealed by the Star on Nov. 24, overruled bureaucrats after they expressed concern about what Keel would do with provincial funding.
Court documents show the government sent a letter to Keel and its subsidiary Get A-Head demanding repayment the same day the Star story was published.
According to an internal ministry database obtained by the Star, civil servants evaluating SDF applications said they were worried the company might use money to purchase its own software.
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At the time, Keel did not respond to the Star’s numerous requests for comment but after the story was published online, Keel sent a response saying, “There is zero basis for the claim that Keel intended to purchase its own software with government funds.”
The internal database showed bureaucrats evaluating a 2024 application from the firm were concerned about its plans for $3.67 million — of its total funding request of $4.79 million — to offer the “Keel Mind platform” to 11,373 first responders in peer mental health.
A mandarin flagged the submission from Keel and its subsidiary, Get A-Head.
“There is a large amount of funding for the purchase of software licenses for all planned participants,” wrote the unidentified bureaucrat tasked with scoring applications using official criteria.
“It is not clear if this is the cost associated with development/delivery of the software or if it includes the final price a consumer would pay to use it. If it is the latter, this would essentially be requesting (SDF) funding to guarantee the applicant’s own software sales and directly profit the company.”
Keel’s application was given a “low” score of 59 out of 100 by ministry staff.
But under a column in the database labelled the “minister’s rationale,” Piccini said Keel’s proposal would “enhance workforce resilience by bridging skills gaps and facilitating employment in an in-demand sector.”
Ontario Provincial Police are conducting a criminal investigation into Keel related to money the Toronto company got from the Progressive Conservative government.
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While the firm made headlines after receiving millions of dollars from the SDF in recent years, the OPP probe is related to other funding the firm received from the Ministry of Colleges and Universities.
Ford’s office announced last year that it sent the results of a 2023 forensic audit to the OPP for review after it uncovered irregularities.
The OPP’s anti-rackets branch is on the case.
NDP Leader Marit Stiles — who, along with Liberal MPP Stephanie Smyth (Toronto — St. Paul’s), filed a complaint to the integrity commissioner about Piccini that has triggered an ethics probe — said it’s time for the minister to be fired.
“Rather than take accountability for this mess, Ford is once again going to court to cover his tracks, and it’s Ontario taxpayers left footing the bill. He has ignored my calls to remove this minister for too long already; it’s time for the premier to do the right thing and fire him,” Stiles said.
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