In another crippling blow to the African Canadian Legal Clinic, two government ministries will pull their funding amid serious allegations of financial mismanagement and poor governance.

"The government has made the decision to transition funding to other community agencies that serve the Black community across the GTA," wrote Genevieve Oger, spokesperson and senior media advisor for the Ministry of Children and Youth Services, in an email.

The Ministry of the Attorney General will also back out, months after Legal Aid Ontario yanked its own financial support from the beleaguered clinic. Together, the decisions have stripped the African Canadian Legal Clinic (ACLC) of the vast majority of its funding.

"An important part of this work is ensuring proper oversight and accountability of community agencies and ensuring the Black community across the province can receive consistent and high-quality services that meet their needs," Oger continued.

As Metro first reported in August, the ACLC was plagued by allegations of financial mismanagement, including charges on a company credit card for a diamond ring and alcohol for "Bacardi Fridays" — as well as large bonuses for the executive director and staff.

Executive director Margaret Parsons denied any wrongdoing in a previous interview with Metro. She said former employees made personal purchases with company credit cards but were immediately fired when this was discovered, and all money was paid back. She also said she paid back the money for the diamond ring and never gave any bonuses.

A person who answered the phone at the ACLC this week said Parsons was out of the country and not available for comment, and all senior staff were out of the office.

The Ministry of Children and Youth will provide close to $800,000 to African Canadian Community Services, an entity of the ACLC, during the current fiscal year, which runs until March 31, Oger said. The contract will end then.

Another $85,060 has been provided by the Ministry of the Attorney General, relating to the Direct Accountability Program. That funding will also end on March 31.

Community Justice Workers will refer new clients to the program, which resolves criminal cases outside the courts through measures like apology letters and charitable donations, to other service providers in the area, such as the John Howard Society and Salvation Army, Oger explained.

Parsons told Metro in August the non-profit clinic had 26 employees with a budget of about $1.7 million a year that's "for the most part public funding."

The ACLC was founded in 1994 with a mandate to serve Ontario's Black community, provide legal support for people who need it and draw attention to systemic racism by pursuing "test cases" on issues such as carding.

Legal Aid Ontario pulled funding that made up about 35 per cent of the clinic's budget in August, citing a failure to address concerns of financial mismanagement and poor governance. A Legal Aid spokesperson told Metro in early January that money would go to a new organization for the Black community, set to be up and running by August 2018.