OTTAWA -- An order-in-council says the federal cabinet lost confidence in the CEO of Enterprise Cape Breton Corp. following an investigation into his conduct.

The federal integrity commissioner tabled a report this week that concluded John Lynn hired four people with ties to the federal Conservatives and the Nova Scotia Progressive Conservative party without demonstrating the appointments were merit-based.

Mario Dion said that created the appearance of patronage.

The federal government later said Lynn was fired from his position with cause.

The order-in-council dated Tuesday says the board of directors for Enterprise Cape Breton Corp. requested an independent investigation of Lynn after employees raised concerns about his conduct.