Alberta’s health care system comes under fire again as awful details come out about Sam Mraiche and his company, MHCare Medical Corp. The company’s consistent lobbying helped land AHS inking over $600 million in contracts. This includes a landmark $70 million contract to supply the nation’s pediatric pain-relief medication. Only about one-third of these medications have actually been delivered, calling into question procurement practices and ethical governance.
The controversy intensified following changes made by Premier Danielle Smith’s government in 2023 that relaxed the province’s ethics rules, allowing Members of the Legislative Assembly (MLAs) and political staff to accept gifts more freely. Critics say this move has created a dangerous new avenue for conflicts of interest. They find concerning implications in the ties between the government and private vendors like Mraiche.
Mraiche’s activities at AHS haven’t just focused on winning contracts. He was instrumental in brokering a deal with a COVID-19 test supplier. This agreement proved to be the foundation of years of litigation. Jitendra Prasad, AHS’s senior official in charge of purchasing, helped broker this deal, raising red flags about transparency in health care contracting. Written summaries of recorded conversations between Mraiche and multiple suppliers show extensive high-level discussions about these arrangements. These interactions occurred from December 2021 through February 2022.
The scandal involving Mraiche has focused attention on the larger issue of the potentially corrupting influence of political connections on Alberta’s health care system. Athana Mentzelopoulos, the former CEO of AHS, is suing the organization partly on grounds that her termination was related to her investigation. She researched the connections between procurement officers and companies like MHCare. This leads to serious concerns over accountability and governance within Alberta’s health care sector.
Khalil Mraiche, Sam’s son, served as a policy adviser in Smith’s government but left his position in December 2023. This deeply personal bond has drawn sharp criticism regarding the assumed appropriateness of such familial ties in public service roles.
Outside of his government connections, Sam Mraiche has a long history of political donations. In 2019, he ran as a New Democratic Party (NDP) candidate, showcasing his active involvement in Alberta’s diverse and shifting political landscape. Smith’s administration recently awarded a contract to Atabay Pharmaceuticals and Fine Chemicals, a Turkish company. They plan to move five million bottles of liquid children’s acetaminophen and ibuprofen. With the DBE procurement scandals still fresh in everyone’s minds, this decision stepped into controversial territory.
Prasad now has the audacity to publicly announce that he personally managed the entire engagement of MHCare during the pandemic. Yet, retired Manitoba judge Raymond Wyant’s report, commissioned to review procurement practices in Alberta, noticeably omitted any information related to MHCare and Atabay’s selection process. In response, critics argue that lax omissions limit transparency and accountability within expensive state-sponsored health care contracts.
Mraiche’s personal life has drawn attention. His sister, by the way, now lives in a wonderful house, with more than 2,500 square feet that include a magnificent “Japanese-inspired” garden. This acquisition is a dramatic departure from the trumpet calls to support public health funding and ethical governance.
The story is still unfolding, as advocates and public interest stakeholders wait to see what comes next. As discussions heat up regarding ethics within Alberta’s health care system, industry insiders express differing opinions on Mraiche’s role.
“Mr. Mraiche has laboured hard since his youth to build successful and thriving businesses based solely on his work ethic and entrepreneurial instinct.” – Scott Hutchison
Supporters describe Mraiche as smart and innovative, generous with his time and talent, and deeply committed to his work. Nadim Haidar commended him, stating, “He’s very generous. He never shuts his door against anybody.”
Not all views are positive. Critics pinpoint statements attributed to Mraiche that indicate a dismissive approach to taxpayer dollars. In one instance, he reportedly questioned the significance of missing funds: “They’re really going to notice that a million is missing?”
The repercussions from these disclosures continue to be felt. Now, we turn our attention to the Alberta government’s next steps on addressing rampant ethics and transparency issues within its new health care procurement-driven system.
