03/22/2012 04:00 EDT | Updated 05/21/2012 05:12 EDT

'Concerned' about Ornge allegations, McGuinty promises action on auditor's report

TORONTO - Premier Dalton McGuinty says he's "concerned" by allegations of questionable business practices at Ontario's air ambulance service.

Ontario auditor general Jim McCarter released a report yesterday saying Ornge received hundreds of millions of taxpayer dollars.

But McCarter says the governing Liberals failed to sufficiently monitor the agency as it used the money to make questionable business deals.

McGuinty says if a provincial police investigation finds public funds have been misused, the government "will take all steps necessary to recover those funds."

And Health Minister Deb Matthews is rejecting opposition calls for her resignation over the auditor's report.

In her defence, Matthews says the top brass at Ornge lied to the government when by promising not to use public money for the complex web of subsidiaries it set up.