The RCMP have confirmed they have initiated an investigation into allegations of corruption and irregularities surrounding Alberta Health Services (AHS) procurement practices.
The investigation follows a complaint received by the RCMP, reported by Global News, though specific details about the complainant are undisclosed.
The controversy flows from a $1.7-million wrongful dismissal lawsuit filed by former AHS CEO Athana Mentzelopoulos, who was terminated in January.
Her legal action claims high-level government officials pressured her to approve overpriced contracts with private health contractors, sparking widespread controversy.
The Alberta government enlisted former Manitoba judge Raymond Wyant on March 3 to conduct a third-party review, while the province’s auditor general also investigates.
Premier Danielle Smith has promised repercussions if any wrongdoing is uncovered. The RCMP’s involvement marks a significant escalation, raising questions about potential criminality.
“As Premier, I was not involved in any wrongdoing," said Smith previously. "Any insinuation to the contrary is false, baseless and defamatory. I have read various media stories containing allegations regarding the procurement and contracting processes of AHS. They are troubling allegations and they should be reviewed as quickly as possible.”
Mentzelopoulos claimed that throughout 2024, the premier's former chief of staff Marshall Smith repeatedly pressured her to sign off on contracts with private surgical providers, including an extension for the Alberta Surgical Group (ASG), despite her concerns about inflated costs, questionable ownership, and lack of value for taxpayers.
Mentzelopoulos alleges the contracts involved significantly higher rates than comparable services and included unnecessary provisions, like payments for overnight stays against clinical advice.
The allegations suggest Marshall Smith interfered in AHS procurement processes, which are typically managed by the public service, not political staff.
This alleged interference is said to have favoured certain private companies, raising questions about potential conflicts of interest.
Marshall Smith has denied the allegations, calling them “outrageous and false” and asserting that procurement is handled by strict public service policies, not political staff.
The Alberta NDP have repeatedly called for RCMP involvement.
In a statement issued Thursday afternoon, the province said, “The GOA is unaware of the identity of any party under RCMP investigation, but will provide the required cooperation to the RCMP should the government be requested to do so. We refer any further inquiries regarding this matter to the RCMP as it would be entirely inappropriate for the Government to comment on an ongoing police investigation.”
The allegations have not been proven in court.