Smith says she welcomes investigation into AHS scandal; former CEO seeks $1.7M in lawsuit
Posted Feb 12, 2025 8:31 am.
Last Updated Feb 12, 2025 7:23 pm.
Alberta Premier Danielle Smith spoke publicly on Wednesday for the first time since her government was accused of political interference and questionable deal-making in surgical contracts last week and says she welcomes the auditor general’s probe into the claims.
In a Washington, D.C., press conference with all of Canada’s premiers Wednesday, Smith says she first learned of the allegations from the recently fired head of Alberta Health Services (AHS) when a report was published in the Globe and Mail.
The allegations from Athana Mentzelopoulos claim of high-level arm-twisting and conflicts of interest surrounding multimillion-dollar deals for health products and surgical procedures.
People named in the allegations include Smith, Health Minister Adriana LaGrange, and interim AHS president and CEO Andre Tremblay.
Smith says she is glad Alberta’s auditor general has opened an investigation into the situation.
“We’re interested in seeing what the auditor general has to say,” Smith said. “We’ve already set up a shared file so they can get all of the documents that we have to see if there’s any wrongdoing.
“If there’s any wrongdoing, we’d like to get to the bottom of it and if there isn’t, we need to find out why AHS is standing in the way of chartered surgical centres.”
The premier said in a statement posted to social media over the weekend that she wasn’t involved in any wrongdoing and any suggestion she was is baseless and defamatory.
When asked in Washington about her confidence in LaGrange, Smith said, “I still have confidence in my health minister.”
There have also been allegations surrounding the Alberta premier’s chief of staff, suggesting he was involved in the shady business.
Smith explains that hasn’t been proven.
“We’ve been asking for eight months for any, as I understand it from my health minister, for any indication of wrongdoing and we haven’t see any,” she said. “We have to see if there’s any wrongdoing first and if there is, we have to clean it up.”
Former AHS CEO formally files wrongful dismissal lawsuit
Mentzelopoulos formally filed a wrongful dismissal lawsuit on Wednesday against both AHS and the province seeking $1.7 million.
The lawsuit obtained by CityNews claims she was fired because of her investigation into various contracts with private surgical companies that she believes were overpriced.
The suit also claims she was fired by interim AHS president and CEO Andre Tremblay after the AHS board refused to terminate her employment. The board itself was later fired.
Mentzelopoulos also claims she was dismissed Jan. 8, two days before she was scheduled to meet with the auditor general to discuss her discovery.
The claims have not been proven in court and the province has yet to file a statement of defence. In a post to social media Wednesday, LaGrange says she will be filing a statement “in short order.”
“I have seen the filed statement of claim by the former CEO of AHS,” writes LaGrange. “It appears to reiterate many of the same allegations that were made in the letter that was obtained by media.”
“Many of the allegations and claims made are clearly false, while others will need to be investigated further as part of the auditor general’s work and the government’s internal review of this matter.”
NDP calling for RCMP investigation
In addition to the auditor general investigation, the Alberta NDP have asked for investigations from the RCMP, the ethics commissioner, and a judicial-led public inquiry.
Opposition Leader Naheed Nenshi says all parties named in allegations, including, Smith, LaGrange and Tremblay, should step aside from their roles during the probes.
LaGrange said Tuesday an unnamed third party has been called in for an investigation into the reports.
The NDP called for Legislature to be reconvened in a press conference Wednesday, saying the UCP has been hiding in the face of scandal.
“The premier must reconvene the legislature immediately so this issue can be addressed where it belongs—under public scrutiny, in front of the elected representatives of this province,” said Deputy NDP Leader Rakhi Pancholi. “These allegations of corruption are unlike anything this province has ever seen.”
Currently, government officials aren’t scheduled to return to the Legislature until Feb. 25.
With files from The Canadian Press
