Alberta Premier Danielle Smith responds to a question during a news conference after a meeting of western premiers, in Whistler, B.C., on June 27, 2023.DARRYL DYCK/The Canadian Press
Alberta’s opposition party pummelled the governing United Conservatives in the legislature for the second day in a row with questions about allegations of government pressure in procurement and contracts with private companies tied to the health care system.
Premier Danielle Smith’s government has, for weeks, been embroiled in controversy after The Globe and Mail first reported allegations, now contained in a wrongful dismissal lawsuit, of political interference into contracting and procurement practices at the provincial health authority and the Ministry of Health.
Athana Mentzelopoulos, the former chief-executive of Alberta Health Services, alleges high-ranking government officials, including Ms. Smith’s former chief-of-staff Marshall Smith, interfered in contract negotiations to the benefit of private companies.
“The Premier’s chief of staff reports to just one person – the Premier. If she didn’t know what he was doing or wasn’t briefed on what was happening in her office that is on her,” said New Democratic Party House Leader Christina Gray.
“Will the Premier finally call the public inquiry to ensure that Albertans get the answers to the questions they’re asking, including answers from that former chief of staff?”
Ms. Smith deflected the question and instead focused on her critique of AHS, which she has repeatedly said was responsible for all procurement decisions.
Alberta minister says he was aware of alleged misuse of public funds in procurement at health agency
Peter Guthrie, who resigned from cabinet on Tuesday in protest of Ms. Smith’s response to the allegations, attended a UCP caucus meeting and sat on the backbench during the legislative session on Wednesday. The Premier has yet to name a replacement to take over Mr. Guthrie’s former role as minister of infrastructure.
The NDP, during Question Period, pushed Ms. Smith to justify ending the internal investigation and forensic audit Ms. Mentzelopoulos said she launched into the matter and to explain the numerous changes made to AHS’s senior leadership. Five more AHS employees were dismissed on Tuesday.
Two of them were involved in leading the Alberta Surgical Initiative, according to internal communications obtained by The Globe. The ASI is a program jointly developed by AHS and the health ministry to reduce waiting times and improve access to surgeries, including by expanding relationships with chartered surgical facilities, according to the health authority’s webpage.
CSFs are private outfits where surgeries are performed at public expense and are at the heart of the contracting and procurement affair. Ms. Mentzelopoulos alleges that government officials, including Mr. Smith, pressed AHS to sign deals, with inflated rates, for these private facilities.
None of the allegations have been tested in court. Health Minister Adriana LaGrange, who is named in the lawsuit, has said she will file a statement of defence. The Auditor-General is reviewing contracting and procurement procedures at AHS and the health ministry.
Kevin Gerrits, a program director with ASI, and Stacey Litvinchuk, a senior program officer with ASI, were terminated on Tuesday. Penny Rae, who was the chief information officer of the information technology department at AHS, was also dismissed after more than 11 years at the health authority, according to internal communications.
Ms. LaGrange, when asked during Question Period about this week’s layoffs, said 425 AHS staff were notified on Tuesday that their positions were being transferred to the province’s new Acute Care organization, one of four government agencies replacing AHS as part of a government overhaul.
“We have said it all along, with the refocusing, people have to move to the new pillars,” said Ms. LaGrange. “There are five positions that were identified for elimination that would not be required by the acute care agency. They’re not front line staff. They’re not involved with procurement.”
David Veitch, a spokesperson with AHS, said in a statement that five positions were eliminated because there “would no longer be a role for them at AHS.” Mr. Veitch declined to provide names or positions of the five individuals, saying it was a human resources matter.
Ms. Gray, during Question Period, asked multiple times why the Premier cancelled the forensic audit, which was being conducted by a law firm, according to Ms. Mentzelopoulos’s statement of claim.
“The UCP fired everyone who knew about the audit. It looks like burying evidence. They fired the CEO and their handpicked board and we just learned that they’re firing even more people at AHS,” said Ms. Gray. “Will the Premier stop the firings and call a judicial inquiry?”
Ms. Smith didn’t answer the question and later accused Ms. Gray of slander and defamation when she asked the Premier about Mr. Smith, who has no relation to the Premier.
“I would just caution the member opposite,” said Ms. Smith, before the gallery erupted and House Speaker Nathan Cooper called for order. The Premier continued: “If there are any individuals within Alberta Health Services procurement who are guilty of wrongdoing, we’ll get to the bottom of it.”
Mr. Smith left his position in October and, in a statement on Tuesday, said procurement is executed by the public service, not political staff. “There are very strict policies in place that prevent political involvement in these processes,” he said in a statement to The Globe. “I am eager to participate in review by the Auditor-General and the internal investigation.”