A political storm has erupted at Queen’s Park as Ontario’s $2.5-billion Skills Development Fund faces intense scrutiny, allegations of preferential treatment, and a potential police investigation. Minister David Piccini, who oversees the fund, is under growing pressure to resign following damning findings from the auditor general and accusations of troubling links between well-connected lobbyists and groups awarded grants.
The controversy centres on how grants meant to support worker training have been distributed. A special report released in October by Auditor General Shelley Spence found that more than half of the projects approved by Piccini’s office scored poorly against program criteria when evaluated by civil servants. Despite low rankings, these projects received roughly $742 million over five funding rounds. The auditor also highlighted that dozens of low- and medium-ranked applicants who were selected had hired registered lobbyists, creating the appearance of political influence.
Other provinces including Alberta, British Columbia and Manitoba do not allow ministers’ offices to hand-pick recipients — a contrast the auditor said raises concerns about fairness and transparency.
Piccini has defended his role, insisting elected officials should have the final say on funding decisions in order to respond to regional labour-market needs. He has denied any wrongdoing, accepted the auditor’s recommendations in principle, and continued disbursing funds even after the report was released. Premier Doug Ford has stood firmly by him, dismissing calls for his removal.
Opposition parties, however, say the fund has effectively been turned into a vehicle for rewarding allies. NDP Leader Marit Stiles accused the minister of running a “Minister of Favours” office, while Liberal parliamentary leader John Fraser called for a full forensic audit of the program. Critics argue the real issue is whether taxpayer dollars are being spent responsibly at a time when more than 700,000 Ontarians are unemployed and relying on skills-training programs to find work.
The scandal deepened further when the government confirmed it had handed a forensic audit to the Ontario Provincial Police. Keel Digital Solutions — a company that received grant money — acknowledged it was the subject of the audit and said it will cooperate with authorities. The OPP’s anti-rackets branch is now reviewing whether a criminal investigation is warranted.
Former cabinet ministers familiar with earlier versions of the fund say there should be no partisan involvement in the selection process at all. Brad Duguid, who oversaw a similar program under the previous Liberal government, said he relied on civil servants to evaluate applications, describing political interference as both inappropriate and risky. John Milloy echoed that sentiment, noting that ministers who personally intervene in individual grant decisions leave themselves exposed when controversies arise.
The issue is now dominating Question Period at Queen’s Park and is expected to continue doing so until the legislature breaks for the holidays in December. Whether Piccini ultimately survives the political fallout remains to be seen, but the broader debate surrounding the Skills Development Fund — and how billions in public money should be awarded — is likely to persist long after.