Alberta Auditor General Investigates Alleged Political Interference in Health Procurement

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Alberta’s auditor general, Doug Wylie, is probing procurement practices at the provincial health ministry following reports of alleged political interference. The Globe and Mail revealed that the Alberta government had allegedly tried to influence these processes, a claim that, if substantiated, could force Premier Danielle Smith to step down, according to the NDP Opposition.

Late Wednesday, the newspaper reported that Alberta Health Services (AHS) CEO Athana Mentzelopoulos was fired just two days before she was scheduled to meet with Wylie to discuss the findings of her investigation into procurement at AHS and Alberta Health.

The report cites a letter from Mentzelopoulos to AHS lawyers claiming the AHS board recommended she take her findings to the RCMP. It also mentions alleged pressure from Marshall Smith, the then-chief of staff to Premier Danielle Smith, to approve more chartered surgical facilities, including those operated by the Alberta Surgical Group (ASG).

Mentzelopoulos expressed concerns about the proposed rates in contracts with ASG and had also been investigating the relationship between AHS and MHCare, the company responsible for importing children’s pain medication from Turkey in 2022. MHCare also hosted multiple cabinet ministers at Edmonton Oilers playoff games at Rogers Place last summer.

On Thursday, Wylie confirmed he was investigating procurement at Alberta Health and AHS, specifically focusing on chartered surgical facilities, medication, and COVID-19 personal protective equipment. Some of this procurement involved MHCare.

Alberta NDP Leader Naheed Nenshi called on Premier Smith to address the allegations immediately and advocated for investigations by the RCMP and the province’s ethics commissioner, as well as a public inquiry led by a judge.

Nenshi claimed to have seen parts of Mentzelopoulos’s letter and insisted that Smith, along with Health Minister Adriana LaGrange and Mental Health and Addiction Minister Dan Williams, should step aside until these investigations were complete.

“They cannot operate in this role while they are under the shadow of a potential RCMP criminal investigation,” he said. If the allegations are proven true, he argued that they have to resign.

Nenshi maintained that Smith, as the principal, must have known her chief of staff was interfering in procurement processes. If Smith was unaware, he argued, it demonstrated incompetence and warranted her resignation.

“The chief of staff only works on their principal’s direction. They are the right hand,” Nenshi explained.

LaGrange and Williams were attending the U.S. National Prayer Breakfast in Washington, D.C., when these developments were unfolding. LaGrange’s office issued a statement denying that Mentzelopoulos was fired due to her investigation into procurement issues.

“The interpretation that her termination was due to AHS’ review of certain procurement decisions are false,” the statement said. “We understand that AHS has been reviewing these procurement decisions and processes and that work will continue until it is completed.”

AHS also responded by confirming that it was reviewing its procurement processes and had temporarily paused the awarding of any contracts involving the parties under scrutiny.

A lawyer representing MHCare declined to comment on the allegations in the report, citing potential legal proceedings. The lawyer maintained that the claims were unfounded and that their client had acted properly.

Health Care Professionals React

Mike Parker, the president of the Health Sciences Association of Alberta, described the details in the report as a scandal, suggesting that political influence was driving the reorganization of health care delivery. The organization represents over 30,000 health-care professionals.

The Alberta Medical Association called for greater investment in public health care, while the United Nurses of Alberta highlighted the “needless upheaval” in the health care system.

Nenshi argued that the credibility of the province’s health care restructuring has been shattered. He suggested that the recent firings of key figures indicate a lack of trust in the restructuring process.

Response to Criticism

The controversy has sparked a broader debate about accountability and transparency in Alberta’s health care system. With these new allegations of political interference, stakeholders and the public are closely watching the outcome of Wylie’s investigation.

As the investigation progresses, it is clear that the issue of procurement practices in Alberta’s health ministry has significant implications for the integrity of the health care sector and public trust in government.