AHS scandal: calls for public inquiry strengthen after new report into Premier Smith’s former chief of staff

There are renewed calls for a public inquiry into the ongoing AHS health contracts scandal following new investigative reporting by the Globe and Mail.

According to the published report, Premier Danielle Smith’s former chief of staff, Marshall Smith, used to live in a home owned by the sister of businessman Sam Mraiche.

A lawsuit filed by Athana Mentzelopoulos, the former CEO of Alberta Health Services, in February says Mraiche and his companies have signed more than $600 million in health contracts with the Alberta government. Mraiche and the premier attended an Oilers playoff game last year.

Mentzelopoulos’ suit also alleges high-ranking health ministry staff, as well as Marshall Smith, pressured her to sign off on contracts for private surgical facilities despite concerns over high costs and who was benefiting. Her suit alleges she found potential conflicts of interest and was wrongfully fired for looking into questionable deals.

The allegations have sparked an RCMP investigation, a government review led by a former Manitoba judge, and a probe into health-care procurement by Alberta’s auditor general.

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The latest report is not sitting right with the leader of the Alberta NDP, who has been critical of the UCP government’s handling of the situation.

“This gentleman (Mraiche) is the cousin of Mickey Amery, the justice minister’s, wife,” said Naheed Nenshi. “We know that multiple family members work for cabinet ministers as political staff, and now we know that this family was the premier’s chief of staff’s landlord.

“The government is doing everything they can to prevent a full public inquiry. They’re doing everything they can to prevent all the information from getting to the investigators. Albertans would be forgiven for saying, ‘why would you do that if you have nothing to cover up.’”

‘We will get to a public inquiry’

Political Scientist Duane Bratt, from Mount Royal University, told CityNews Tuesday the premier is dragging her heels on calling for a judicial-led inquiry.

“It’s like here we go again. It’s like every couple of days there’s a new development,” Bratt said.

“Typically, opposition parties on day one will call for a public inquiry. That’s what opposition parties do, but I think there is enough smoke here that we need to ferret this out. And I still believe that sooner rather than later, we will get to a public inquiry.”

A lawyer for Marshall Smith told CityNews Tuesday he would not be providing a comment because the matter is before the courts.

The former chief of staff is suing the Globe and Mail and Mentzelopoulos, alleging defamation. The Globe first reported allegations of corruption in the multimillion-dollar health contracts.

Smith’s statement of claim, filed in court Wednesday, says allegations about him in the Mentzelopoulos lawsuit are “gratuitous, irrelevant and are unnecessary,” and because he’s not named as a defendant he can’t respond to them or provide a statement of defence.

His lawsuit alleges false statements from Mentzelopolous and published in the Globe paint him “in the worst possible light,” including the suggestion he’s a “bully” or involved in criminal activity. The document says he was not involved in the bidding, negotiation, selection, procurement or awarding of contracts to surgical facilities.

CityNews reached out to the premier’s office and a lawyer for Mraiche for a comment but did not immediately hear back.

–With files from The Canadian Press