RCMP launch probe amid allegations of corruption in Alberta health contracts

The lawsuit also alleges she faced political pressure, including from Premier Danielle Smith’s office, to sign off on deals despite outstanding questions surrounding excessive costs and who was benefiting.

The lawsuit alleges word of the investigation by Mentzelopoulos swirled through government and one finance official asked her about rumours of “kickbacks.”

None of her allegations have been tested in court, and Smith has denied any wrongdoing.

Alberta’s auditor general and the United Conservative Party government have launched their own probes into the contracts.

The former head of Manitoba’s provincial court, Raymond Wyant, is heading the government’s review, which is to continue despite the RCMP investigation.

Health Minister Adriana LaGrange, who is named in the lawsuit, has said she will fight the lawsuit.

Her office said Thursday the government was unaware of the party under police investigation “but will provide the required co-operation to the RCMP should the government be requested to do so.”

The Mentzelopoulos lawsuit alleges she became so concerned about what she was finding that she briefed the AHS board of directors and the board recommended she go to the RCMP.

Soon after, the suit alleges, LaGrange orchestrated the firing of Mentzelopoulos. The government then fired the entire AHS board.

The statement of claim also alleges Mentzelopoulos raised red flags about a government staffer, who had an email account with private supplier MHCare Medical while negotiating a massive pharmaceutical contract with the company on behalf of the government.

MHCare and its CEO, Sam Mraiche, made headlines after it was announced in 2022 that they were awarded a $70-million contract to procure children’s pain medication from Turkey.

Alberta received about 30 per cent of the order, despite paying the full cost. Following that contract, Mraiche provided multiple cabinet ministers and government staff with luxury box tickets to Edmonton Oilers playoff games.

The lawsuit says AHS estimated Mraiche-related firms have completed $614 million in contracts for goods and services.

MHCare is not named in the lawsuit and has said any allegations of wrongdoing on its part are “unwarranted and unjustified.”

Dan Scott, a lawyer for Mentzelopoulos, told The Canadian Press that she welcomes the RCMP investigation.

“She will of course co-operate with that investigation as well as the ongoing auditor general’s investigation,” he said, adding that his client cannot comment about whether or not she has already been interviewed by Mounties.

He said despite public statements from LaGrange and Smith promising to file speedy statements of defence in the lawsuit, both AHS and the government have asked for extensions with the court and are to file by March 18.

“I have been wondering about the reason for the delay given the statements over the last few weeks,” said Scott.

The Opposition NDP has called for a full public inquiry that can subpoena witnesses and require evidence under oath.

NDP Leader Naheed Nenshi has said the Wyant investigation is designed to give Smith cover, and that the former judge has been put in a “straitjacket” with the probe’s restrictions.

“We are happy the RCMP is investigating. These allegations of bloated contracts are incredibly serious, and we’re glad to see them being treated as such,” Nenshi said in a statement.

“We have faith in the RCMP investigation and encourage the government to be fully transparent, much more than they have been to date in this CorruptCare scandal.”

This report by The Canadian Press was first published March 6, 2025.

— With files from Jack Farrell

Lisa Johnson, The Canadian Press

by The Canadian Press

RCMP launch probe amid allegations of corruption in Alberta health contracts

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