Alberta UCP cabinet minster calls for removal of health minister in AHS controversy

Alberta's United Conservative Party (UCP), Infrastructure Minister Peter Guthrie has called for Health Minister Adriana LaGrange to be reassigned to another ministry while investigations into controversy at Alberta Health Services (AHS) proceed, reported CBC on Friday.

According to CBC, Guthrie sent a memo to his cabinet colleagues, urging swift action in light of allegations of corruption and mismanagement at AHS. The controversy centres around claims made by the former CEO of AHS, who alleged pressure to approve lucrative contracts for private surgical facilities, which raised question about Premier Danielle Smith, LaGrange, and former Premier's Chief of Staff Marshall Smith.

Guthrie's memo requests LaGrange be moved "to another unrelated ministry until an investigation is complete," highlighting concern over potential conflicts of interest and the need for an impartial investigation. Guthrie also emphasized the necessity of involving the RCMP if any criminal wrongdoing is uncovered, reported CBC.

Athana Mentzelopoulos, the former CEO of AHS, was dismissed on January 8, 2025, just two days before she was scheduled to meet with Alberta's auditor general to discuss her findings from an internal investigation into procurement contracts.

Mentzelopoulos has filed a $1.7-million lawsuit against AHS and the province, alleging she was fired for looking into high-level government interference and overpays on multimillion-dollar contracts.

The investigation by Mentzelopoulos focused on contracts with private surgical companies, notably the Alberta Surgical Group, which she alleged were overpriced.

There were also concerns about conflicts of interest, including with MHCare Medical, a company that had significant business dealings with AHS, including a controversial $70-million contract for children's pain medication from Turkey.

Mentzelopoulos's lawsuit alleges she faced pressure from high-ranking government officials, including from the office of Premier Danielle Smith, to sign contracts she believed were inflated. This pressure allegedly came from Marshall Smith, then-chief of staff to Premier Smith, who allegedly had ties to individuals linked to these contracts.

The Alberta government and AHS have denied the allegations, stating Mentzelopoulos's dismissal was part of a broader health-care restructuring plan rather than related to her investigation. LaGrange's office has emphasized that any suggestion of termination due to procurement review is false.

Following these allegations, Alberta’s Auditor General, Doug Wylie, launched an investigation into AHS's procurement and contracting processes, focusing on chartered surgical facilities, medications, and COVID-19 personal protection equipment.