Alberta Minister of Infrastructure resigns over Premier's handling of AHS scandal
Airdrie-Cochrane MLA Pete Guthrie tried a hint, then dropped the bomb.
Just hours before the return of the Legislative Session in Alberta, in a cabinet meeting Tuesday morning, the Minister of Infrastructure resigned from Danielle Smith’s cabinet citing concerns over how the alleged fraud in AHS procurement is being handled by Smith and her cabinet.
In a leaked cabinet memo to CBC last Friday, Mr. Guthrie urged his fellow Executive Council members to support his recommendations to reposition those who were named directly in former AHS CEO Athana Mentzelopolous’ statement of claim in a wrongful dismissal suit against the Alberta Health Services and the Alberta Government.
He asked that Health Minister Adriana LaGrange be moved to a non-health-related portfolio, and that former Deputy Minister Andre Tremblay, who also became AHS CEO on January 8, then added Administrator to his titles when the AHS board was fired by Ms. LaGrange, be removed while the government’s internal investigation proceeds.
The Premier said at the time that Mr. Guthrie’s recommendations were not supported by a majority of Cabinet, a statement Mr. Guthrie repeated in comments to the Globe and Mail Tuesday morning.
Keep talking
Addiction and recovery opportunities are important needs in the province; few will deny this. Unfortunately, as long as the UCP under leadership of Danielle Smith refuses to act appropriately on allegations of defrauding Albertans, lining up people who have been traumatized by events for spending announcements reeks of opportunism rather than compassion.
At a joint press conference between the Premier and Mental Health and Addictions Minister Dan Williams on Monday, the Minister admitted that he had heard rumours of “misuse” of public funds and asked his Deputy Minister to speak with Ms. Mentzelopolous.
Ms. Mentzelopolous mentions this inquiry in her statement of claim saying the Deputy Minister asked “about the AHS internal investigations and the forensic audit, including the investigation of ‘our good friend JP’, referring to Jatendra Prasad (63.), formerly a senior procurement officer in AHS, who was, as of January 2, 2025 allegedly working in the Ministry of Health as a consultant on Chartered Surgical Facilities (54 a.).
Contracts for CSFs, as well as other contracts specifically written for MHCare Medical and other companies involving Sam Mraiche, were allegedly under investigation by Ms. Mentzelopolous, AHS, and a third party forensic auditor that Ms. Mentzelopolous contracted in November 2024 (44.), according to her statement of claim.
The Premier was also asked if, since becoming aware of the real estate transaction between Mr. Mraiche and the Ministry of Infrastructure which netted Mr. Mraiche a $300,000 profit within three months, the Premier was asking all Ministries to look into contracts with Mr. Mraiche or his businesses.
“We’re not doing a witch hunt to try to find every single transaction that every single business has done if there’s no reason to look into it,” the Premier responded.
“Potential corruption”
I’m not going to stand by and see potential corruption exist within government, and be part of that. ~ former Minister of Infrastructure Peter Guthrie, Feb 25, 2025
The Premier has thus far claimed that she found out about former AHS CEO Athana Mentzelopolous’ allegations on February 5. She then claimed that she had heard about them “in the fall”.
Ms. Mentzelopolous alleges that she brought her concerns regarding political interference from Marshall Smith, the Premier’s Chief of Staff, to the Deputy Minister of Executive Council, the Premier’s Deputy Minister Ray Gilmour, on October 4.
The Premier’s Chief of Staff resigned on October 8.
Later in October, Ms. Mentzelopolous alleges that she received a draft response from Prasad including “demonstrably false” information regarding the children’s pain and fever medication contract, as it claimed to be between AHS and Atabay Pharmaceuticals, rather than AHS and Sam Mraiche’s MHCare Medical, “purportedly at the direction of the Premier’s office,” (42.) where Rob Anderson had taken over as Chief of Staff to the Premier.
This incident allegedly caused Ms. Mentzelopolous to look into all contracts involving Sam Mraiche and companies that he was affiliated with (43.).
Ms. Mentzelopolous then alleges that the investigation became a point of contention between herself and Minister LaGrange, as well as Deputy Minister Andre Tremblay throughout December, culminating in her firing, over Zoom, by Mr. Tremblay, who is now the CEO of AHS.
The Premier has repeatedly refused calls for a public inquiry, preferring to keep the investigation private.
The Premier has refused to move those who are alleged to have pressured the former AHS CEO to drop the investigation into Mr. Mraiche and companies he is affiliated with.
The Premier has refused to direct her Ministries to look into procurement on the public’s behalf.
The Premier’s Minister of Infrastructure just resigned in protest.
I think we’ve moved well past “potential corruption” and are solidly within “the Premier is actively trying to coverup wrongdoing in her government”.
And the rest of her Cabinet is letting it happen.
Question Period is back today at 1:30pm MDT and I expect it to be a banger.
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Keep it up with this insightful reporting of Smith and her digging- deeper cabinet corruption. If it look like duck, and walks like a duck…
When will politicians realize that it's not just the corruption, but the cover up, that will bring you down..