The Ontario government allocated millions of taxpayer dollars through the Skills Development Fund (SDF) to a dental practice brokerage company called Dentacloud.
The matter attracted attention because Dentacloud’s CEO, John Maggirias, had connections with the wife of Monte McNaughton, the cabinet minister in charge of the fund at the time.
Dentacloud, founded in November 2021, claims to specialize in helping dentists sell their practices, focusing on the private equity and dental service organization markets.
The company’s LinkedIn profile and statements from executives indicate that they have facilitated hundreds of millions of dollars in practice transactions. Dentacloud’s registered address is in the same shopping mall as Maggirias’s dental practice in Etobicoke, not far from the Premier’s residence.
According to government records, Dentacloud received over $2 million in funding in the third round of the SDF. Edward Kwan, the company’s chief operating officer, said the program trained 349 participants, each receiving more than 50 hours of professional training, and ultimately led to the hiring of approximately 70 employees. “We hope to help address the workforce shortage in Ontario dental clinics caused by the pandemic,” Kwan wrote.
Details of government ties were also revealed. Magillias began donating to the Progressive Conservative Party (PC) in 2022; that year, he donated just over $6,000 to MacNaughton’s candidate and riding association, bringing his total contributions to the PC to over $22,500 to date.
Meanwhile, Magillias joined a new organization called the Canadian Dental Federation (CFD) in 2022. CFD documents from early 2023 describe him as a “project promoter.”
The CFD calls itself the national voice of the dental profession but is not affiliated with the longer-established Canadian Dental Association, which represents more than 20,000 dentists.
Kate Bartz, the first and former chair of the CFD, served in the position from December 2022 to May 2024.
In a response to media reports, Bartz stated that she “never discussed the Skills Development Grant program or spoke on behalf of any grantee at any time,” and that she sought and received approval from the Integrity Commissioner before accepting the position.
Kwan also stated that the CFD “never advocated for or discussed SDF funding,” either in meetings with ministers or otherwise.
Records show that CFD representatives arranged and participated in a virtual meeting with then-Postsecondary Minister Jill Dunlop on February 15, 2023, focused on “Postsecondary Dental Programs in Ontario.”
The CFD subsequently addressed training needs for dental assistants and dental hygienists in a proposal released in early 2023, with goals including removing barriers to accessing dental care and creating inclusive education. Butts claimed the provincial government “did not make any funding requests” during that meeting.
On March 20, 2023, Majilias appeared with Butts at Queen’s Park. Dunlop introduced Majilias and his partner as “guests” during his speech in Parliament.
Dentacloud stated that the two were the winners of a previously awarded day trip, and that the trip was primarily for observing the question period. Subsequently, on March 25, 2023, Dentacloud and the provincial government signed an SDF funding agreement.
Michel Figueredo, a spokesperson for the provincial minister of labour, said that the third round of the SDF approved over $2 million for Dentacloud to train new dental workers and enhance their skills.
The government considers the SDF a key program of the Ford administration, with approximately $2.5 billion allocated in recent years, and the program continues to roll out subsequent rounds.
Notably, Dentacloud was selected as a recipient of the next round of SDF funding, slated to receive approximately $3.8 million in funding to train clinical and administrative support staff. However, the company stated that it later decided not to accept the funds in favor of focusing on other strategic priorities.
Political and regulatory backlash is also accumulating. Butts left the CFD in May 2024 to become executive director of the Association of Career Colleges, which represents small for-profit colleges in Ontario.
The CFD’s website is offline, and its social media presence has been inactive since early 2023. The federal Corporations Administration notified the nonprofit organization of its dissolution after failing to submit required documents for two consecutive years.
In March 2024, the federal health minister posted a photo on social media with Butts, Maguirias, and others, marking one of the last public references to the CFD.
Furthermore, several unions and critics have questioned the SDF’s use of public funds for certain recipients rather than postsecondary institutions.
In response, the Ontario Auditor General’s Office has launched an investigation into the SDF’s training processes and plans to submit audit reports on most of the program’s grants.
Opposition MPs have also questioned the relationship between the beneficiaries of the funds and the government, but at the same time support the overall policy direction of using tax revenue to fund worker skills training.