EDMONTON – An independent review of AHS's contracts with Sam Mraiche's MHCare revealed details surrounding the children's Tylenol scandal, including a $42 million balance for undelivered goods, and AHS's destruction of over half of the products received, according to a report released Friday. The report from RSM Canada, as part of Judge Raymond Wyant's previously delivered report on his investigation into the scandal, reviewed the financial aspects of the deals between the parties and found that AHS issued over $69.8 million in payments to MHCare and received $20.6 million in products. These payments stemmed from AHS's initial purchase in December 2022 of 5 million bottles of acetaminophen and ibuprofen, valued at $70 million, which required an initial prepayment of $14 million and an additional $14 million prepayment for ibuprofen. "The procurement occurred under urgent conditions that prompted accelerated decisions, significant prepayments, and commitments ahead of regulatory approval," reads a quote from the RSM report..The initial order was upended, however, after Health Canada only approved the import of 1 million bottles of acetaminophen and 500 thousand bottles of ibuprofen.The report showed that AHS received over 489 thousand bottles of ibuprofen, valued at $6.8 million, which left a $7.2 million prepaid balance from the purchase. Additionally, AHS paid $13.8 million for over 984 thousand bottles of acetaminophen. To settle the imbalance between the initial purchase, which amounted to over $21 million in prepaid funds, and the $56 million due to MHCare, the two sides agreed to a five-year, $56 million contract for "replacement products.""Limited Health Canada authorization created substantial undelivered quantities, necessitating the conversion of the PO into a multi-year contract t o preserve value through alternative products," the RMS report reads. The original $14 million prepaid balance from the initial order was transferred to the contract, along with an additional $28 million prepayment from AHS. The report, however, revealed that as of October 21, 2025, they have received no products for those payments. Further concerning is the RMS's finding that it found no evidence to verify how the $56 million of products was to be fulfilled. The contract stipulated that the funds would equal "15% conversion of Oral/Rectal Acetaminophen to IV," yet there was no unit price for each product, making it impossible to determine how much product AHS would receive under the deal. .RMS's report also contained a breakdown of the 1,473,619 bottles of medication received by AHS, 10.9 thousand used in hospitals, 4.7 thousand sent to pharmacies, and 651.1 thousand donated internationally. Conversely, over half, 806.9 thousand, bottles were never used and destroyed. The number of bottles destroyed has been rumoured and discussed online; however, the RMS report was the first official document to verify the total. Friday's release completes Wyant's investigation, which began in March 2025. However, it is not the final piece of the scandal, as Alberta RCMP continue to conduct a criminal investigation into the matter, and Alberta's Auditor General is expected to wrap up his investigation in the coming months.
