RCMP investigating Alberta health procurement for possible fraud, money laundering

Mounties looking into an Alberta health-care spending scandal are investigating potential fraud, breach of trust and money laundering.

The information is contained in court documents filed this month as part of an ongoing wrongful dismissal lawsuit filed by Athana Mentzelopoulos, the former head of Alberta Health Services, once the province’s health authority.

RCMP confirmed last year that they’re investigating health-care procurement contracts, but they didn’t provide details about it.

The police probe is one of multiple investigations sparked after Mentzelopoulos alleged she was fired for looking into sweetheart deals, high-level political interference and corruption in health services contracts.

The government has said she was fired because she was failing in her job and working to stop mandated health reforms.

None of the civil suit allegations, from either side, have been proven in court.

In a letter sent Oct. 15, Ontario Crown prosecutor Tom Andreopoulos writes that the ongoing RCMP investigation is looking into fraud, breach of trust and money laundering related to contracting at Alberta Health, the government ministry, and Alberta Health Services, the health-care provider.

He doesn’t offer specifics or identify a subject in the investigation.

The office of the Ontario Attorney General’s role is to help RCMP with advisory support and the prosecution of any charges that may arise from the investigation.

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For months, lawyers for the government, AHS and Mentzelopoulos had been haggling in court over which documents related to the case might be protected by solicitor-client privilege or who has authority over them.

Last month, Justice Michael Lema ruled Mentzelopoulos wasn’t entitled to keep or disclose certain records deemed confidential.

The Andreopoulos letter was filed as part of a court application from a lawyer for Mentzelopoulos. The application argues that when Mentzelopoulos retained records, she had legitimate reasons and that the Andreopoulos letter demonstrates that.

In his letter, Andreopoulos notes that the RCMP seized “various documents and materials” that were provided by Mentzelopoulos after she was fired.

Andreopoulos writes that the prosecutors’ office reasonably believes there’s overlap between what the RCMP seized and which documents have been deemed privileged in court.

Andreopoulos declined to comment Tuesday. RCMP said that to protect the integrity of their ongoing investigation, they have no further comment at this time.

In the spring, RCMP carried out multiple search warrants amid the investigation but declined to give details.

At the time, officers were seen outside the Edmonton offices of MHCare Medical Corp., the medical supply company headed up by businessman Sam Mraiche, which is caught up in the controversy.

MHCare and Mraiche are not party to the lawsuit and have said they did not engage in any improper conduct.

Justice Minister Mickey Amery said Tuesday, of the RCMP investigation, “we will fully co-operate and work with them as we have from the very beginning.”

In question period in the house Tuesday, Opposition NDP Leader Naheed Nenshi continued to press for a full, public inquiry into the affair, accusing Premier Danielle Smith’s government of dragging its feet to avoid accountability until after next year’s election.

“The CorruptCare scandal also refuses to go away,” he said.

Smith responded by pointing to the government-commissioned report from former Manitoba judge Raymond Wyant, saying his investigation was the best way to “clear the air.”

“I think that’s what people want to see, that we have identified issues that were problematic in the AHS procurement process and we’re fixing them,” she said.

Nenshi noted that the Wyant inquiry had no subpoena authority, nor could it compel testimony under oath.

Wyant wrote in his report that he was unable to find any evidence of wrongful interference by government staff, Smith or other elected officials.

However, he said that the scope of his investigation was limited and he could only make conclusions based on the documents he was able to review and the people he interviewed.

“(It) didn’t clear the government in any way and nobody believes the premier when she says it did,” Nenshi said.

“The only reason to avoid a public inquiry right now is if the government has something more to hide.”

Smith said that the government will allow the RCMP to continue their work and “would happily co-operate in any way.”