Alberta has had a wild few weeks, with allegations of corruption swirling around how government contracts are awarded for Alberta Health Services (AHS).
If you missed the news—maybe because you’re stuck in bed waiting for a hip operation—here’s a quick recap.
Danielle Smith’s staff allegedly pressured health officials to approve over half a billion dollars in private healthcare contracts for businessman Sam Mraiche and his company, MHCare Medical. In return, Mraiche reportedly treated these officials to luxury NHL box seats. When AHS CEO Athana Mentzelopoulos and the board tried to investigate, Smith fired all of them.
Mentzelopoulos says she was dismissed for looking into shady procurement deals—including the so-called “Turkish Tylenol scandal”—and private surgical contracts tied to key government staffers.
At a news conference, NDP leader Naheed Nenshi didn’t mince words, “The premier, the minister of health, the minister of mental health and addiction, and all named employees in these allegations must step aside. They cannot operate in this role while they are under the shadow of potential RCMP criminal investigation.”
Infrastructure Minister Peter Guthrie also spoke out, urging the premier and the UCP Cabinet to remove Health Minister Adriana LaGrange while the allegations are being investigated.
Smith stood by LaGrange, and the Health Minister did not resign.
Meanwhile, protesters gathered for the last three Saturdays in Red Deer—where LaGrange’s constituency office is located. The most recent protest was on February 23, with another planned for March 1. Last weekend, about 125 people showed up with signs calling for LaGrange to step down and for the RCMP to investigate.
And now, Peter Guthrie has resigned from his position but remains in the UCP caucus.
No Longer Has Confidence in the Government
Infrastructure Minister Peter Guthrie resigned from his ministerial position, citing concerns over the government’s procurement practices.
In a statement posted on social media on Tuesday, February 25, Guthrie explained that he no longer had confidence in how the government handled procurement across all departments.
“In recent months, I have voiced concerns regarding the Government of Alberta’s procurement practices across all departments,” Guthrie wrote. “As Minister of Infrastructure, I had line of sight into these processes and took steps to address inconsistencies and recommend improvements as part of my fiduciary duty.”
Guthrie highlighted his actions to improve transparency and accountability, including introducing Bill 13 and proposing a Financial Oversight Committee. He suggested that such a committee could have helped prevent issues emerging in Alberta Health and Alberta Health Services (AHS). However, he expressed disappointment that most of the cabinet did not share his concerns. “For this reason, I have decided to step down and return to caucus as a private member, where I can continue to voice my concerns and hold Cabinet accountable with honesty and integrity.”
Growing Controversy
Guthrie’s resignation comes amid growing controversy over government contracts and procurement practices. Former AHS executive Athana Mentzelopoulos has alleged that she was pushed out of her position after investigating conflicts of interest and questionable financial decisions related to AHS contracts. Mentzelopoulos has filed a wrongful dismissal lawsuit against the government and AHS, claiming she was removed for investigating these matters.
The lawsuit, which has not yet been tested in court, has fueled calls from the Alberta NDP Opposition for a judge-led public inquiry into the government’s procurement activities. NDP House Leader Christina Gray stated that her party would demand an emergency debate in the legislature. “We will be asking every minister about the allegations,” Gray said. “We will be leaving no stone unturned because Albertans deserve answers.”
The NDP have branded the scandal as “CorruptCare” and will make it the centrepiece of their criticisms of the government in the spring session of the Legislature which started on February 25.
Further complicating the situation, reports have linked Sam Mraiche, the owner of MHCare, to two private surgical facilities under investigation. Additionally, it was revealed that Mraiche purchased a parcel of land in 2023 and later sold it to the Alberta government through the Infrastructure Ministry, making a $300,000 profit in just a few months. Last week, Guthrie ordered an internal audit of this land deal before stepping down.
Alberta Auditor General Doug Wylie has also launched an investigation into procurement and contracting within the province’s health authority. His review aims to address concerns over potential conflicts of interest and improper financial practices.
Guthrie’s resignation signals deepening tensions within the United Conservative Party government over financial oversight and transparency. While he maintains that his departure is based on principle, opposition leaders argue that these issues require a thorough public examination.
As Alberta’s legislative session resumes, pressure is mounting for the government to clarify these allegations. With ongoing investigations and legal challenges, the coming weeks will likely bring more scrutiny to the province’s procurement processes and financial decision-making.
