Ontario's minister of citizenship and immigration quit Thursday after an auditor general's report slammed the government for doling out $32 million in year-end grants to ethnic groups, without any accountability.

Mike Colle resigned Thursday as Ontario's minister of citizenship and immigration.
(Government of Ontario)

In his report, Auditor General Jim McCarter says the money was rushed out the door in a way that was "not open, transparent, or accountable."

He added, however, that there was no evidence the minister, Mike Colle, handed out the funds to ethnic groups because of Liberal ties, as opposition parties had accused.

McCarter said the grant process had no formal application procedure.

"Decisions were based on conversations, not applications," McCarter said, adding that many organizations said they weren't even aware how the minister knew they needed the money.

"More could have been done and quite frankly, more should have been done," he said.

Colle said he was under "time constraints," was personally familiar with the organizations and had "to get the money out the door quickly," McCarter said.

'Decisions were based on conversations, not applications.'—Auditor General Jim McCarter

In one case, the Ontario Cricket Association requested $150,000, but received $1 million, McCarter's report said.

"You had people literally showing up wanting a small bucket of money and instead walked away with a wheelbarrow full of money," said Progressive Conservative Leader John Tory.

Both opposition parties called on the premier to bear responsibility for the scandal.

"Dalton McGuinty can't fob off responsibility for this scandal onto one disgraced cabinet minister. The issue is not Mike Colle's actions," New Democrat Leader Howard Hampton said in a news release.

Ministry of Citizenship and Immigration Year-End Grants, $500,000 and greater
Group	Fiscal Year	Amount
United Jewish Appeal Federation	2006/07	$15,000,000
Brooklin Community Centre	2005/06	$3,000,000
Centre for Information and Community Services of Ontario	2005/06	$1,000,000
Greek Community of Toronto	2005/06	$1,000,000
Ontario Cricket Association	2005/06	$1,000,000
Frontier College - Literacy Camps for First Nations	2005/06	$814,927
COSTI-IIAS Immigrant Services	2005/06	$600,000
Armenian Community Centre	2006/07	$500,000
Canadian Baseball Hall of Fame and Museum	2005/06	$500,000
Casa dos Acores of Ontario	2006/07	$500,000
Islamic Institute of Toronto	2006/07	$500,000
O'Connor Community Recreation Centre	2005/06	$500,000
Settlement and Integration Services Organization	2006/07	$500,000
St. George Arab Cultural Centre	2005/06	$500,000
Toronto Baycrest Centre for Geriatric Care	2005/06	$500,000
Source: Ont. auditor general's special review of year-end grants

Progressive Conservative Leader John Tory agreed, adding the report highlights a "shocking lack of leadership" and a disregard for taxpayers' money.

"We've seen this over and over again from this government: It's not open, it's not transparent, it's not accountable," said Tory.

In response to the report, Premier Dalton McGuinty apologized to the Ontario people and promised immediate changes to the grant application process.

He said Colle's resignation was the "right thing to do" and that the government "wholeheartedly" accepts the finding that the process was not accountable or transparent enough.

McGuinty said the responsibility of handing out year-end capital grants will be given to the Ministry of Public Infrastructure and Renewal.

Until the Oct. 10 provincial election, Government Services Minister Gerry Phillips will also serve as the immigration minister.

In the face of mounting criticism, McGuinty finally agreed in mid-May to call in the auditor general to review the issue. The government had quashed an earlier attempt by opposition parties to force the review.

At the time, the Liberals did admit there was no formal application process for handing out grants.