Government Removes Board of Governors Following Findings of Governance and Spending Failures
The Ontario government has appointed an administrator to oversee Conestoga College after an audit uncovered what officials described as serious financial mismanagement and governance failures at the institution.
In a statement released Wednesday, the Ministry of Colleges, Universities, Research Excellence and Security confirmed that the province is relieving Conestoga College’s Board of Governors of its duties and appointing Linda Franklin as Administrator, effective immediately.
The intervention follows an extensive provincial audit that identified questionable executive compensation practices, luxury travel expenses and repeated hospitality spending that allegedly lacked proper oversight.
“Our government’s record-setting funding for colleges must be used to drive student success; anything less is completely unacceptable,” said Nolan Quinn, Minister of Colleges, Universities, Research Excellence and Security. “Under the administrator’s oversight, I expect that responsible fiscal decision-making will return to Conestoga College, setting the college on the right path to producing the graduates Ontario needs.”
Audit Findings Raise Concerns Over Executive Compensation and Expenses
According to the province, the audit revealed several spending decisions approved by the college’s board that were deemed inappropriate and inconsistent with public-sector accountability standards.
Among the findings was a 55 per cent salary increase approved in 2024 for a former college president, bringing annual compensation to more than $636,000. The audit also found that the same individual received a termination payment equal to 83 times the president’s monthly salary.
The government said the payment exceeded limits established under Ontario’s Broader Public Sector Executive Compensation Act, which permits termination payments of up to 24 months.
The audit additionally uncovered a $23,000 trip to Italy involving three senior leaders at the college. According to the ministry, the institution covered business-class airfare, luxury accommodations and premium transportation costs. Officials also cited other similar trips involving high-end travel expenses.
Hospitality spending was also flagged during the review. The province said repeated ineligible hospitality expenses were approved without appropriate oversight, including a $1,300 dining bill for internal staff in which alcohol represented half of the pre-tax total.
Province Says Financial Decisions Contributed to Staff Layoffs
Provincial officials linked the financial decisions identified in the audit to broader operational challenges facing the college.
The ministry said the situation contributed to significant upheaval for students, employees and the surrounding community, including the layoff of more than 500 employees. The layoffs represent one of the largest workforce reductions in Ontario’s college sector in recent years.
The government did not indicate whether additional investigations or enforcement actions could follow the audit findings.
Despite the governance changes, the province stated that day-to-day operations at the college will continue without interruption.
Administrator to Oversee Governance and Fiscal Recovery
Under the new arrangement, Linda Franklin will assume the responsibilities previously held by Conestoga’s Board of Governors. She will work alongside the institution’s interim president, leadership team and staff to restore governance practices and stabilize the college’s finances.
The ministry said Franklin’s mandate includes providing accountable and transparent leadership while developing and implementing a plan to return the institution to sound fiscal management.
Students and faculty are expected to continue accessing regular academic programs and campus services during the transition.
Franklin brings extensive experience in Ontario’s postsecondary education sector. She previously served for more than 15 years as president and chief executive officer of Colleges Ontario, the advocacy organization representing the province’s 24 public colleges.
The government framed the appointment as part of broader efforts to strengthen accountability across Ontario’s publicly funded postsecondary institutions amid growing scrutiny over governance, spending and financial sustainability in the college sector.
The ministry has not provided a timeline for how long the administrator will remain in place or when a new Board of Governors may be appointed.