RCMP officers at MHCare Medical Corp.’s headquarters in Edmonton on Wednesday. MHCare is owned by Edmonton entrepreneur Sam Mraiche.JASON FRANSON/The Globe and Mail
The RCMP have executed search warrants as part of their investigation into procurement irregularities at Alberta’s health authority, a controversy that has dogged Premier Danielle Smith’s government for more than a year.
The Mounties, in an e-mail to The Globe and Mail on Wednesday, said officers had “executed multiple search warrants,” but would not provide further information.
At least a dozen RCMP officers were inside and outside MHCare Medical Corp.’s headquarters in Edmonton on Wednesday. The medical equipment supplier is one of the companies under scrutiny for its ties to public servants at Alberta Health Services and provincial politicians.
Officers at the scene on Wednesday declined to comment.
The RCMP, a year ago, confirmed that they were investigating allegations of inappropriate procurement procedures in the province’s health care system.
Sam Mraiche, an Edmonton entrepreneur, owns MHCare. A Globe and Mail investigation published last year detailed Mr. Mraiche’s connections to senior officials in the Alberta government.
Scott Hutchison, a lawyer for Mr. Mraiche, said in an e-mailed statement that Mr. Mraiche and MHCare “have consistently maintained that they have not engaged in any improper conduct.”
“They remain confident that any fair and objective investigation will reach that conclusion,” he added.
Alberta Health Services’s former chief executive, Athana Mentzelopoulos, alleged in court documents that the government fired her for investigating possible conflicts of interest in some of the organization’s procurement deals, including contracts tied to Mr. Mraiche. The government denies Ms. Mentzelopoulos’s allegations, which have not been tested in court.
At least a dozen RCMP officers were inside and outside MHCare Medical Corp.’s headquarters in Edmonton on Wednesday.JASON FRANSON/The Globe and Mail
MHCare has been awarded more than $600-million in business by Alberta Health Services since 2020, including $70-million for a 2022 deal to import children’s medication from Turkey, roughly a third of which was delivered.
A marked RCMP SUV was parked outside MHCare’s office Wednesday afternoon. Officers were also spotted getting into unmarked vehicles.
A woman who answered the phone at a neighbouring business said RCMP were also at MHCare’s headquarters on Tuesday.
MHCare was closely tied to the government’s plan to purchase children’s acetaminophen and ibuprofen from a new supplier during the North American shortage of those medications in late 2022. Alberta Health Services signed the deal with MHCare to import five million bottles of the painkillers from a manufacturer in Turkey. Very little of the medicine was ever used and most of it was either donated to other countries or destroyed.
Alberta’s Auditor-General, Doug Wylie, is also investigating allegations of improper procurement at Alberta’s Health Ministry and Alberta Health Services.
Cheryl Schneider, a spokesperson for the Auditor-General, on Wednesday said the process has taken “longer than anticipated due to the ongoing receipt of relevant documentation and the availability of key interviewees.”
Mr. Wylie expects the “document review and interviews will be complete, and findings determined” by the time his term wraps up at the end of April, Ms. Schneider said.
“While the report will not be prepared before Auditor General Doug Wylie’s term concludes on April 28, the office has a capable team in place to complete the work.”
Ms. Smith also appointed a retired judge from Manitoba to review whether the Health Ministry and agency had followed their own procurement policies. Raymond Wyant, in a report released in October, determined that Alberta Health Services did not follow procedure when it signed the deal with MHCare to import children’s painkillers from Turkey.
He also concluded that both the Health Ministry and Alberta Health Services had failed to follow their own rules when signing off on a private surgical centre in Edmonton.
Matt Jones, one of Alberta’s four ministers now overseeing health care in the province, on Wednesday said the government plans to tighten the rules around health care contracting, including by banning employees from using personal e-mail while conducting government business and expanding protections for whistleblowers, in response to the sprawling controversy.
He said the government will adopt all 18 recommendations that Mr. Wyant submitted as part of his report.
Mr. Jones highlighted a handful of incoming changes, largely focused on addressing conflicts of interest, when discussing his department’s budget at the standing committee on families and communities.
“We’re ensuring all perceived or actual conflicts of interest are managed, disclosed and enforced, both internally and when dealing with suppliers and service providers,” he said.
“We’re reviewing legal and contractual frameworks to ensure all applicants and contractors are held to the highest ethical standards, and we’re strengthening procurement thresholds and signing authorities to prevent misconduct and restore public confidence.”
Sam Blackett, a spokesman for Ms. Smith, did not respond an e-mail seeking comment late Wednesday.