Premier calls for prompt action by Alberta's auditor general into health spending, contracting

Alberta Premier Danielle Smith said she will be asking for an expedited review from the province's auditor general, who said this week that he is examining "concerns or allegations related to contracting and potential conflicts of interest" within the province's health authority.

"We need to get to the bottom of this issue quickly to identify any potential wrongdoing, correct it, and address it appropriately," Smith said in a statement Saturday morning. 

This marked Smith's first comment on the issue since Auditor General Doug Wylie announced his investigation on Thursday. 

It came after the Globe and Mail reported on a series of allegations stemming from a letter it obtained from the lawyer of Athana Mentzelopoulos, who was recently terminated as AHS's CEO. A spokesperson for Wylie has said parties were informed of his investigation on Jan. 31.

CBC News has been unable to obtain a copy of the letter. Mentzelopoulos has not commented. 

The Globe reported that the letter included claims of political interference and allegations that Mentzelopoulos was wrongfully dismissed, losing her jobs days before she was scheduled to meet with Wylie to discuss her own investigation into Alberta's procurement contracts and deals for private surgical facilities.

Wylie has said his investigation will focus on AHS, but could extend to other organizations beyond it and the health ministry. Specifically, the probe is currently focused on chartered surgical facilities, medication (ibuprofen or acetaminophen) and COVID-19 personal protection equipment.

The government has been critiqued for its PPE purchasing early in the pandemic, and a controversial $70-million deal to buy children's pain medication from Turkey-based Atabay Pharmaceuticals, which was made during a North American shortage.

Wylie's investigation will also review the effectiveness of management and control processes — including governance and oversight, he said.

The Alberta government disbanded the entire AHS board in late January, appointing an official administrator in its place. 

On Thursday, an AHS spokesperson said the agency is reviewing its procurement procedures and processes as it relates to Mentzelopoulos' allegations, and has paused awarding new contracts that include parties involved in its probe.

On Saturday, Smith said she has followed news about the investigation and finds the allegations troubling.

She said she has already directed her officials to be fully transparent with Wylie. 

She specified, "As premier, I was not involved in any wrongdoing."

Smith also has asked the AHS internal review to also be completed as soon as possible, and have its findings delivered to her, she said. 

Opposition NDP Leader Naheed Nenshi criticized Smith's comments in his own statement Saturday morning. 

He called for a full RCMP investigation and an independent judicial-led public inquiry, and said the NDP has written to the RCMP, Wylie and Alberta's ethics commissioner to request investigations.

Smith's statement shows that the premier is taking the situation seriously, said Duane Bratt, a political scientist at Mount Royal University in Calgary.

But it still leaves some questions unanswered, he said, such as why Mentzelopoulos was fired after just signing a contract in December 2023, and why the AHS board — whose members Smith's government appointed — was dismissed.

"That's what you get when you get a written statement instead of a press conference. There are a lot of lingering questions here," Bratt said.

Bratt believes a public inquiry is possible, but it hinges on what the auditor general finds and recommends, he said.

"There are, clearly, a lot of ethics questions and there's a lot of smoke. We'll have to see if there's any fire," he said