Prime Minister Justin Trudeau said "a lot of people have lost faith" in Hockey Canada as the organization is embroiled in a major scandal over its handling of sexual abuse cases under his watch.

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“What we are learning about Hockey Canada is absolutely unacceptable,” said Mr. Trudeau on the sidelines of a press briefing in British Columbia on Tuesday.

According to a court document obtained by The Canadian Press and released Monday, Hockey Canada held a fund specifically dedicated to uninsured liabilities, which includes past sexual abuse claims.

Mr. Trudeau recalled that the government had frozen the millions of dollars that it usually transferred to the organization “pending accountability and transformations of the organization”.

"I'm really, really disturbed for the culture that apparently has crept into the highest levels of this organization," he added.

The organization could begin to touch the funds again when it submits its action plan to change the culture in the face of sexual abuse cases and joins the Office of the Sport Integrity Commissioner.

These two conditions were established by Federal Sports Minister Pascale St-Onge last month. She called Hocket Canada's leadership "deficient" and "inappropriate".