Alberta auditor general probing procurement and contracting processes within health authority

Alberta's auditor general has launched an investigation into procurement and contracting processes within the province's health authority to address "concerns or allegations related to contracting and potential conflicts of interest."

In a statement Thursday, Auditor General Doug Wylie said his probe within the department of health and Alberta Health Services is ongoing.

News of the investigation comes after the Globe and Mail reported on a series of allegations about contracting and conflict of interest.

The newspaper says it has obtained a letter from the lawyer of Athana Mentzelopoulos, who was recently terminated as AHS's chief executive officer.

The allegations — contained in the letter from Mentzelopoulos's lawyer — included claims of political interference and allegations that Mentzelopoulos had been dismissed days before she scheduled to meet with the auditor general to discuss her own investigation into Alberta's procurement contracts and deals for private surgical facilities.

CBC has been unable to obtain a copy of the letter, which alleged wrongful dismissal, or reach Mentzelopoulos for comment.

In his statement Thursday, Wylie said his probe will focus on AHS but may extend to other organizations beyond the health ministry and Alberta Health Services. He specified, "at this time, the examination pertains to chartered surgical facilities, medication (ibuprofen or acetaminophen), and COVID-19 personal protection equipment."

The Alberta government's purchasing of personal protective equipment early in the COVID-19 pandemic and a controversial $70-million deal to buy children's pain medication from Turkey during a North American shortage have been the subject of public scrutiny.

According to Wylie's statement, the investigation will also examine the effectiveness of management and control processes — including governance and oversight — "ensuring value for Albertans."

A spokesperson for Wylie later said parties were informed of the investigation on Jan. 31.

AHS procurement

At Alberta Health Services, spokesperson Holly Budd said Thursday the organization is "conducting a review of our procurement procedures and processes related to the matters raised by the former CEO, and in the interim, we have paused the awarding of new contracts involving parties that are involved in that review."

Budd said AHS would not comment further while the auditor's investigation is underway.

Last week, the government dismissed the entire AHS board and appointed Deputy Minister of Health Andre Tremblay as AHS's official administrator. He has already been serving as the organization's interim CEO since early January.

A statement sent on behalf of Health Minister Adriana LaGrange said recent "personnel and board changes" were part of the government's overhaul of the health-care system, in which it is creating four new agencies. 

Regarding allegations from Mentzelopoulos reported in the Globe, the statement said "the interpretation that her termination was due to AHS's review of certain procurement decisions are false. We understand that AHS has been reviewing these procurement decisions and processes and that work will continue until it is completed."

The minister also welcomed the auditor general's review into whether procurement practices were properly followed.

Health-care unions, Opposition, call for investigation

The Globe and Mail's report prompted NDP Leader Naheed Nenshi and some unions representing health-care workers to call for an independent investigation into allegations of political interference in the awarding of private health service contracts.

In a statement, United Nurses of Alberta president Heather Smith called the allegations "deeply serious and troubling."

Smith said the government's move to divide AHS into separate organizations responsible for acute care, primary care, mental health and addictions and continuing care is "needless upheaval" and includes a government agenda to move aggressively to privatize public services.

Nenshi called for the premier, the health minister, and deputy minister and AHS head Tremblay to step aside while the auditor investigates.

"These are by far the strongest allegations I have ever seen against an Alberta government," Nenshi said at a Calgary news conference Thursday.

Health Sciences Association of Alberta president Mike Parker, who heads the union representing 30,000 health professionals such as paramedics and respiratory therapists, says the allegations raise questions about whether Albertans received the best value for public money spent on private contracts.

He said it's a troubling idea at a time when health-care budgets are stretched and Albertans can't always access timely care.