The RCMP is investigating allegations that Alberta Health Services mishandled procurement decisions to the benefit of private businesses.Jeff McIntosh/The Canadian Press
Alberta Health Services has been ordered to hand over documents to law enforcement, as the RCMP investigate allegations that it mishandled procurement decisions to the benefit of private businesses, according to one of the agency’s senior executives.
Mircea Fagarasanu, a senior vice-president at Alberta Health Services, last week confirmed his employer had received a production order, according to a transcript of a legal proceeding filed in court on Monday.
A production order is a judicial authorization that compels its recipient to provide authorities with records relevant to criminal investigations. To obtain a production order, police must convince a judge or justice of the peace there are reasonable grounds to believe an offence has been committed.
The disclosure marks the first public confirmation that police investigators are directly probing Alberta Health Services, the province’s public health agency, which has been at the centre of a procurement controversy that has rocked Premier Danielle Smith’s government. The RCMP have previously executed search warrants at businesses connected to their probe into the matter.
Dr. Fagarasanu provided the information while being questioned by a lawyer for Alberta Health Services’ former chief executive, Athana Mentzelopoulos, who is suing the agency and the provincial government for wrongful dismissal.
“We received the production order,” Dr. Fagarasanu said on June 10 during a legal proceeding related to Ms. Mentzelopoulos’ lawsuit. He confirmed the production order was issued to Alberta Health Services, but said he did not know when.
Sharon Roberts, a lawyer representing Ms. Mentzelopoulos, had asked Dr. Fagarasanu whether he was aware that the agency had received, through the RCMP or legal counsel, production orders related to procurement or contracts for private surgical facilities.
“Yes, I am aware,” Dr. Fagarasanu said. Although he did not specify which police service had obtained the order, the RCMP are the only law enforcement agency known to be probing the procurement affair.
Heather Jenkins, a spokeswoman for Alberta Justice Minister Mickey Amery, directed questions about Dr. Fagarasanu’s statements to Munaf Mohamed, a lawyer who represents the government in Ms. Mentzelopoulos’ case.
“My client does not have any comment at this time,” Mr. Mohamed said in statement.
External lawyers for Alberta Health Services did not acknowledge requests for comment. Holly Budd, a spokeswoman for the health agency, in a statement said: “We are unable to comment while these matters are before the courts.”
The RCMP, in a statement, confirmed they have an “ongoing investigation” associated with Alberta Health Services, but would not comment further.
The office of the province’s Auditor-General has also said it is investigating allegations of improper procurement at Alberta’s Health Ministry and Alberta Health Services.
Ms. Roberts was questioning Dr. Fagarasanu on his 49-page affidavit, filed in court June 4 in support of the health agency’s defence against Ms. Mentzelopoulos’ $1.7-million lawsuit. The former CEO, in documents filed in court, alleges the government fired her in early 2025 while she was investigating contracts tied to private businesses, including MHCare Medical Corp., owned by Sam Mraiche.
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MHCare, in late 2022, landed a $70-million deal with Alberta Health Services to import children’s medication from Turkey. Only 29 per cent of the medication made it to Alberta, little of which the province used. About half was donated to other countries and the remainder ended up in a landfill.
Mr. Mraiche, who is related to Mr. Amery and joined Ms. Smith’s inner circle in a hotel suite the night her party won the 2023 provincial election, is a part-owner in two companies that were negotiating with the health agency to open private surgical facilities. Those talks were called off in late 2025, after nearly a year of scrutiny on Mr. Mraiche’s dealings with Alberta Heath Services that followed Ms. Mentzelopoulos’ firing.
In March, the Mounties executed multiple search warrants related to their investigation. Police searched MHCare’s headquarters in Edmonton and Jaberson & Associates, a tax preparation firm owned by Sam Jaber, who served as MHCare’s chief financial officer. The RCMP also attended the home of Jitendra Prasad, Alberta Health Services’ former procurement chief, who had an MHCare e-mail address while working for the government agency.
Lawyers for Mr. Mraiche and Mr. Jaber have repeatedly stated their clients did nothing wrong. Mr. Prasad’s lawyer has not commented. None of the men are party to Ms. Mentzelopoulos’ lawsuit.
None of the allegations stemming from Ms. Mentzelopoulos’ lawsuit have been tested in court. The government and Alberta Health Services argue they fired Ms. Mentzelopoulos for failing to execute the ruling United Conservative Party’s health-care strategy.
Dr. Fagarasanu was the acting senior vice-president for corporate and clinical support services at Alberta Health Services when he swore his affidavit. The document said he had “personal knowledge” of its contents, except when noted otherwise, and that he “reviewed” Ms. Mentzelopoulos’ affidavit of records and supplemental affidavit of records. Affidavits of records detail documents and other evidence lawyers intend to use in a court case; Ms. Mentzelopoulos’ two affidavits of records are not public.
In his court filing, Dr. Fagarasanu argued a large swath of documents in Ms. Mentzelopoulos’ filings contain Alberta Health Services’ privileged and confidential information, which he said the former executive was not authorized to retain.
He also stated Ms. Mentzelopoulos‘ records contained information that was confidential, albeit not privileged. Alberta Heath Services asserts only 25 of the roughly 450 records Ms. Mentzelopoulos intends to use in her case contain information that is not confidential, Dr. Fagarasanu said in his affidavit.
However, under questioning, Dr. Fagarasanu said he did not read all of Ms. Mentzelopoulos’ records before signing off on his affidavit.
“I did not look, no,” he said. “It is based on the legal counsel’s review.”
Dr. Fagarasanu also said he did not read another affidavit referenced in his own sworn document.
“I believe the information to be true when it comes from the source of the legal counsel.”
Dr. Fagarasanu did not acknowledge a request for comment.