Alberta’s healthcare system faces a storm of controversy and scrutiny as Alberta Health Services (AHS) initiates a comprehensive review of its procurement procedures following serious allegations from its former CEO. Athana Mentzelopoulos, who was dismissed on January 8, 2025, raised concerns regarding potential corruption and questionable contracts within AHS. The unfolding situation has sparked demands for thorough investigations from various stakeholders, including political figures and medical associations.
The controversy began when a lawyer representing Mentzelopoulos sent a letter to AHS, alleging her dismissal was a result of her probing into dubious contracts. This letter, sent two weeks prior, outlined allegations of corruption and misconduct, causing ripples throughout Alberta's healthcare and political landscape. In response, Alberta Health Services announced the suspension of any contract awards involving implicated parties until the completion of their internal review and an investigation by the auditor general.
"In the interim, we have paused the awarding of any contracts involving the parties that are involved in that review. Until this review and the auditor general’s review have been completed, we will not be commenting further.” – AHS
The fallout from these allegations has been significant. The Alberta Medical Association has called for an independent investigation to uncover the truth behind these claims. Similarly, Heather Smith, president of the United Nurses of Alberta, has advocated for a formal inquiry and a public report detailing the financial intricacies of the contracts and identifying those who benefitted financially.
Adding to the chorus of calls for accountability, NDP Leader Naheed Nenshi demanded multiple investigations, including one by the Royal Canadian Mounted Police (RCMP). Nenshi expressed his concerns about misuse of taxpayer money and potential enrichment of political allies.
"This is the first time we've seen in black and white allegations that, not only do they apply pressure to supposedly independent organizations, but they're using taxpayer money to enrich their friends in ways that do not meet the needs of Albertans.” – Nenshi
"What I have seen was the most shocking stuff I've ever seen," – Nenshi
Further complicating the situation is Alberta Health Services’ recent restructuring announcement. AHS will be dismantled to give rise to four new public health organizations, each responsible for different sectors of service delivery. Under this new structure, AHS's role will be constrained to managing hospital services.
The Health Sciences Association of Alberta has expressed apprehension that this restructuring is politically motivated and intended to enhance for-profit care within the province. Such concerns are heightened by past transactions with MHCare, a medical supply company that has conducted $614 million in business with Alberta. Notably, MHCare was awarded a $70-million contract in 2022 to procure children's pain medication from Turkey. Despite this substantial investment, Alberta received only 30% of the medication order, which was later deemed unsafe for use.
Complicating matters further are revelations about Sam Mraiche, CEO of MHCare. Reports indicate that Mraiche provided luxury box tickets to Edmonton Oilers playoff games to several cabinet ministers and government officials, raising questions about potential conflicts of interest and favoritism.
Amidst these revelations, Alberta’s auditor general, Doug Wylie, is expanding his investigation into contract and procurement processes beyond AHS to include other health department activities. This broadening scope underscores the gravity and potential reach of the ongoing probe.
“This isn’t just mismanagement — it’s a scandal,” – Mike Parker
