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(rdnewsNOW/ Ian Gustafson)
Alleged corruption

Office of the Minister of Health addresses AHS corruption allegations

Feb 11, 2025 | 11:19 AM

The office of the Alberta Minister of Health has broken its silence amid allegations of corruption within Alberta Health Services procurement and contracting processes.

The news of alleged corruption came out in a recent Globe and Mail report which cited a letter from the lawyer for Athana Mentzelopoulos, who was fired in January as CEO of Alberta Health Services.

The letter accused the United Conservative Party government of wide-ranging corruption, including inflating contracts for private surgery providers, conflicts of interest, and firing Mentzelopoulos because she tried to investigate.

Alberta’s auditor general, Doug Wylie, said last week that he is investigating the circumstances.

In a statement provided to rdnewsNOW on Monday by the office for Health Minister Adriana LaGrange, who is also MLA for Red Deer-North, they said AHS is reviewing the allegations made by the outgoing CEO, “but the interpretation that her termination was due to AHS’s review of certain procurement decisions are false.”

“We understand that AHS has been reviewing these procurement decisions and processes and that work will continue until it is completed,” as written in the statement.

“We also welcome the Auditor General’s review into whether AHS procurement practices were properly followed in these matters and will fully cooperate with that office as they do so. Until these reviews are completed, we will not be commenting further on this matter as it is an ongoing AHS Human Resource issue and a review by an independent officer of the Legislature.”

In the statement, the ministry also says the recent personnel and board changes at AHS are part of the planned Feb. 1, transition of AHS into a service provider under the newly constituted Acute Care Alberta agency.

This comes after Red Deerians held a rally near LaGrange’s office on Saturday morning calling for her to resign.

The group of approximately 100, which formed along 50 Ave., held the rally to send a message to people across the province that enough is enough when it comes to alleged corruption in health care.

“This is probably the biggest scandal that I’ve heard of in my lifetime. We’re talking about $600 million that’s gone to one group for private surgeries and medicine. It’s all been done in the dark,” said organizer of the event and executive director of Public Interest Alberta, Bradley Lafortune on Saturday.

“I think Albertans want some answers and quite frankly the buck stops with the health minister and the buck stops with the premier. It’s time for them to step aside. This is also at a time where our health care system is really under stress.”

On Monday, leader of the official opposition, NDP MLA Christina Gray, said that Albertans deserve answers.

“It’s been six days, but Premier Danielle Smith and Health Minister Adriana LaGrange have not spoken in public about this issue,” she said.

“[Today], cabinet is meeting and the UCP government must act. As a first step, Premier Danielle Smith and Health Minister Adriana LaGrange should step aside while investigations take place.

“The Official Opposition has demanded accountability so that Danielle Smith cannot sweep these allegations under the rug. We have called for full and transparent investigations by the RCMP, the Auditor General, and the Ethics Commissioner. A full public inquiry is needed.

“[Today’s] meeting is also an opportunity for the rest of the UCP cabinet to put their cards on the table. Do they stand for this kind of corrupt government, or will they show Albertans any ounce of accountability? They can make that clear tomorrow by demanding the premier and minister step aside and allow all required investigations to take place.”

Premier Danielle Smith did release a statement on Saturday saying the allegations should be reviewed as quickly as possible.

Friends of Medicare released a statement Tuesday citing the Globe and Mail’s most recent reporting that unveiled more evidence of political interference into Alberta’s procurement process with for-profit surgical facilities.

The new reporting suggests LaGrange stripped AHS of its power to negotiate contracts for private surgical facilities, according to a government directive, after the agency’s then-chief executive allegedly raised concerns internally about the prices in the contracts.

“These are some extremely serious allegations coming out, and every day they seem to get worse. Evidence of a government directive from the Ministry of Health interfering in contracting decisions shows this government is willing to grievously overstep their authority in order to further their privatization agenda in our health care,” said Chris Gallaway, executive director of Friends of Medicare, in a media release. “Yet the premier and the health minister have been concerningly quiet. They need to show they are taking these allegations seriously. The premier needs to answer publicly to Albertans and respond to questions from the media.”

They’re also calling on LaGrange to step down. To read the full statement, visit their website.