RCMP launch probe into Alberta health agency contracting allegations
[url]https://www.theglobeandmail.com/canada/alberta/article-rcmp-launch-investigation-into-alberta-health-controversy/[/url]
Carrie Tait Alanna Smith
The RCMP are investigating allegations of inflated contracts and inappropriate procurement procedures in Alberta’s health care system, the national police service confirmed Thursday, escalating a controversy that has already sparked an Auditor-General examination, an internal investigation, and a resignation from Premier Danielle Smith’s cabinet.
The Mounties received a complaint Feb. 6, the day after The Globe and Mail first reported allegations of government interference, pricey contracts and procurement problems at Alberta Health Services and the province’s Ministry of Health. Those allegations are at the centre of a $1.7-million wrongful dismissal lawsuit filed last month by AHS’s former chief executive, Athana Mentzelopoulos. The RCMP previously said it was reviewing the complaint and changed the file’s status on Thursday.
“Following a review, the RCMP has begun an investigation into the matter,” Christina Zoernig, a federal policing strategist with the Mounties, said in a statement. “As this is an ongoing investigation, no further details are available at this time.”
Alberta fired Ms. Mentzelopoulos on Jan. 8, roughly one year into her four-year contract. She alleges that the Premier’s then-chief of staff, Marshall Smith, and other government officials exerted pressure on her to sign deals to the benefit of private businesses. Ms. Mentzelopoulos alleges that she was terminated two days before she was scheduled to meet with Alberta’s Auditor-General to discuss the investigations she launched while leading the health authority.
Those investigations, according to allegations in her lawsuit, examined contracts and procurement tied to chartered surgical facilities (CSFs) and Alberta’s $70-million deal to import generic pain medication from Turkey.
None of the allegations have been tested in court.
Jessi Rampton, a spokeswoman for Health Minister Adriana LaGrange, said Thursday the government will participate in the RCMP investigation as necessary.
“The [government of Alberta] is unaware of the identity of any party under RCMP investigation, but will provide the required cooperation to the RCMP should the government be requested to do so,” Ms. Rampton said in a statement.
“We refer any further inquiries regarding this matter to the RCMP as it would be entirely inappropriate for the Government to comment on an ongoing police investigation.”
Mr. Smith, who is not related to the Premier, did not acknowledge a request for comment. He previously said he would participate in the government’s internal investigation and the Auditor-General’s examination.
Dan Scott, legal counsel for Ms. Mentzelopoulos, said his client welcomes the RCMP investigation. “She will of course co-operate,” he said in a statement.
Mr. Scott declined to say whether she has been interviewed by the RCMP.
Naheed Nenshi, the leader of the Alberta New Democratic Party, said the Official Opposition has faith in the RCMP’s investigation.
“These allegations of bloated contracts are incredibly serious, and we’re glad to see them being treated as such,” he said in a statement.
On Monday, the Premier appointed Raymond Wyant, a former chief judge of the Provincial Court of Manitoba, to lead the government’s internal investigation . His report and recommendations are due at the end of June.
Auditor-General Doug Wylie confirmed in early February that he is examining procurement and contract practices at the provincial health authority and Ministry of Health, but added that the probe could extend to other organizations. His examination will focus on CSFs, COVID-19 personal protective equipment, and pain-relief medications from Turkey.
Peter Guthrie resigned as Infrastructure Minister last week because he did not feel Ms. Smith and his cabinet colleagues were responding to the allegations with the necessary urgency.
Ms. Mentzelopoulos alleges that government officials wanted her to sign deals with private surgical clinics with terms that were inflated compared with what AHS pays a private competitor in Calgary and its own internal costs. The former CEO alleges there were concerns within AHS about the true ownership and potential costs of the CSFs.
AHS pays private companies to perform operations, such as joint replacements or cataract removals, as part of the public health care system. Chartered surgical facilities are not equipped to perform complicated operations, such as emergency procedures or major cancer surgeries.
In 2024, AHS was negotiating a contract extension with Alberta Surgical Group and terms for new CSFs in Red Deer and Lethbridge.
Documents obtained by The Globe reveal that some doctors in ASG’s ownership group are also part-owners or directors in the Red Deer and Lethbridge projects. Sam Mraiche, who gave luxury hockey tickets to cabinet ministers and senior staff in the Premier’s Office, is also a part-owner in the proposed CSFs.
He owns MHCare Medical, which in 2022 facilitated the $70-million deal to import generic children’s medication from Turkey. Ms. Mentzelopoulos alleges that AHS has paid MHCare and companies affiliated with Mr. Mraiche roughly $614-million for goods and services. Her allegations lack a time frame.
Jessie Bakker, a lawyer for Mr. Mraiche and MHCare, previously stated that “allegations or insinuations of wrongdoing on the part of MHCare Medical Corporation and/or Sam Mraiche are unwarranted and unjustified.”
ASG said in early February that it did nothing wrong
?
[url]https://www.theglobeandmail.com/canada/alberta/article-rcmp-launch-investigation-into-alberta-health-controversy/[/url]
Carrie Tait Alanna Smith
The RCMP are investigating allegations of inflated contracts and inappropriate procurement procedures in Alberta’s health care system, the national police service confirmed Thursday, escalating a controversy that has already sparked an Auditor-General examination, an internal investigation, and a resignation from Premier Danielle Smith’s cabinet.
The Mounties received a complaint Feb. 6, the day after The Globe and Mail first reported allegations of government interference, pricey contracts and procurement problems at Alberta Health Services and the province’s Ministry of Health. Those allegations are at the centre of a $1.7-million wrongful dismissal lawsuit filed last month by AHS’s former chief executive, Athana Mentzelopoulos. The RCMP previously said it was reviewing the complaint and changed the file’s status on Thursday.
“Following a review, the RCMP has begun an investigation into the matter,” Christina Zoernig, a federal policing strategist with the Mounties, said in a statement. “As this is an ongoing investigation, no further details are available at this time.”
Alberta fired Ms. Mentzelopoulos on Jan. 8, roughly one year into her four-year contract. She alleges that the Premier’s then-chief of staff, Marshall Smith, and other government officials exerted pressure on her to sign deals to the benefit of private businesses. Ms. Mentzelopoulos alleges that she was terminated two days before she was scheduled to meet with Alberta’s Auditor-General to discuss the investigations she launched while leading the health authority.
Those investigations, according to allegations in her lawsuit, examined contracts and procurement tied to chartered surgical facilities (CSFs) and Alberta’s $70-million deal to import generic pain medication from Turkey.
None of the allegations have been tested in court.
Jessi Rampton, a spokeswoman for Health Minister Adriana LaGrange, said Thursday the government will participate in the RCMP investigation as necessary.
“The [government of Alberta] is unaware of the identity of any party under RCMP investigation, but will provide the required cooperation to the RCMP should the government be requested to do so,” Ms. Rampton said in a statement.
“We refer any further inquiries regarding this matter to the RCMP as it would be entirely inappropriate for the Government to comment on an ongoing police investigation.”
Mr. Smith, who is not related to the Premier, did not acknowledge a request for comment. He previously said he would participate in the government’s internal investigation and the Auditor-General’s examination.
Dan Scott, legal counsel for Ms. Mentzelopoulos, said his client welcomes the RCMP investigation. “She will of course co-operate,” he said in a statement.
Mr. Scott declined to say whether she has been interviewed by the RCMP.
Naheed Nenshi, the leader of the Alberta New Democratic Party, said the Official Opposition has faith in the RCMP’s investigation.
“These allegations of bloated contracts are incredibly serious, and we’re glad to see them being treated as such,” he said in a statement.
On Monday, the Premier appointed Raymond Wyant, a former chief judge of the Provincial Court of Manitoba, to lead the government’s internal investigation . His report and recommendations are due at the end of June.
Auditor-General Doug Wylie confirmed in early February that he is examining procurement and contract practices at the provincial health authority and Ministry of Health, but added that the probe could extend to other organizations. His examination will focus on CSFs, COVID-19 personal protective equipment, and pain-relief medications from Turkey.
Peter Guthrie resigned as Infrastructure Minister last week because he did not feel Ms. Smith and his cabinet colleagues were responding to the allegations with the necessary urgency.
Ms. Mentzelopoulos alleges that government officials wanted her to sign deals with private surgical clinics with terms that were inflated compared with what AHS pays a private competitor in Calgary and its own internal costs. The former CEO alleges there were concerns within AHS about the true ownership and potential costs of the CSFs.
AHS pays private companies to perform operations, such as joint replacements or cataract removals, as part of the public health care system. Chartered surgical facilities are not equipped to perform complicated operations, such as emergency procedures or major cancer surgeries.
In 2024, AHS was negotiating a contract extension with Alberta Surgical Group and terms for new CSFs in Red Deer and Lethbridge.
Documents obtained by The Globe reveal that some doctors in ASG’s ownership group are also part-owners or directors in the Red Deer and Lethbridge projects. Sam Mraiche, who gave luxury hockey tickets to cabinet ministers and senior staff in the Premier’s Office, is also a part-owner in the proposed CSFs.
He owns MHCare Medical, which in 2022 facilitated the $70-million deal to import generic children’s medication from Turkey. Ms. Mentzelopoulos alleges that AHS has paid MHCare and companies affiliated with Mr. Mraiche roughly $614-million for goods and services. Her allegations lack a time frame.
Jessie Bakker, a lawyer for Mr. Mraiche and MHCare, previously stated that “allegations or insinuations of wrongdoing on the part of MHCare Medical Corporation and/or Sam Mraiche are unwarranted and unjustified.”
ASG said in early February that it did nothing wrong
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Definitely something that makes you hmmm?
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