Ford government sues Keel Digital Solutions over alleged fraud tied to skills development fund

The Ontario government filed a lawsuit seeking $25.9 million, alleging Keel Digital Solutions provided false and misleading reports that led to improper payments; Keel denies the allegations and says it will file a counterclaim.

The Ontario government has filed a 43-page statement of claim against Keel Digital Solutions, alleging breaches of contract and false or misleading reporting tied to provincial funding, including some money from the Skills Development Fund. The suit seeks $25.9 million and names company directors as defendants while a forensic audit of Keel's work is the subject of an Ontario Provincial Police investigation. Keel has denied the allegations and announced it will file a counterclaim. Key points: - The government alleges Keel provided false and misleading quarterly reports between 2022 and 2025 that led to improper payments. - The province is seeking $25.9 million in court, split between $22.3 million claimed by the Ministry of Colleges and Universities and $3.2 million claimed by the Ministry of Labour. - A forensic audit of Keel's contracts has been referred to the Ontario Provincial Police and is under investigation. - Keel Digital Solutions denies the allegations and says it will file a counterclaim. Summary: The filing begins a legal process over alleged misreporting and disputed public payments, and it coincides with an OPP investigation into a forensic audit. Court proceedings and the company's promised counterclaim are the next steps; further outcomes are undetermined at this time.