Alberta Cabinet Minister Resigns, Cites Government’s Handling of AHS Allegations

Alberta Minister of Infrastructure Peter Guthrie is sworn into cabinet in Edmonton on June 9, 2023. The Canadian Press/Jason Franson

Alberta Infrastructure Minister Peter Guthrie has resigned citing concerns about the government’s handling of allegations related to procurement processes across several departments, including Alberta Health Services (AHS).

Guthrie’s resignation comes in the wake of a lawsuit filed by former AHS president Athana Mentzelopoulos, who claims wrongful termination regarding her dismissal. Mentzelopoulos was fired on Jan. 8.

She says she was dismissed because she launched an internal investigation into AHS contracts and procurement practices. She also says she was pressured to sign new deals for private surgical centres. None of the allegations have been tested in court.

Health Minister Adriana LaGrange has said that she would submit a statement of defence in response to Mentzelopoulos’ accusations.

Guthrie reportedly sent a memo to his cabinet colleagues calling for LaGrange and Deputy Health Minister Andre Tremblay to be removed while an investigation into contracting practices at AHS is performed by Auditor General Doug Wylie.

Premier Danielle Smith has said she would not fire or shuffle LaGrange but shuffled Tremblay on Feb. 19. He had been serving as both deputy minister and AHS interim chief executive since Jan. 8. Tremblay was also the AHS’s only administrator since Jan. 31.

Guthrie posted his resignation letter to social media on Feb. 25.

“As Minister of Infrastructure, I had line of sight into these processes and took steps to address consistencies and recommended improvements as part of my fiduciary duty,” he wrote in the letter. ”Unfortunately, the majority of Cabinet does not seem to share my concerns.”

He said he also introduced Bill 13, which would have seen a financial oversight committee formed.

“If implemented, such a committee could have been instrumental in preventing some of the issues we are now seeing in Alberta Health and AHS,” Guthrie said in his letter. ”It is essential that the public has confidence in its government and its processes.”

Guthrie said he would stay on as a UCP MLA, but would leave cabinet. He was first elected as an MLA in 2019 and had served as the minister of infrastructure since 2023.

Smith said in a statement that she has accepted Guthrie’s resignation, adding that he has “obviously expressed concerns regarding the allegations” made by Mentzelopoulos. The premier added her government will fully cooperate with the investigations.

“We also want to determine why, despite months of requests, AHS never brought any substantive evidence or documentation related to this matter to the Minister of Health or to government,” Smith said in a Feb. 25 statement. “I want to reiterate that I was not involved in these procurement decisions, nor am I aware of any wrongdoing with regard to the issues raised by the former CEO.”

Smith has said two investigations have been launched into the procurement issue, one headed by the auditor general and another by an external agency. She noted Tremblay’s removal would separate the roles of deputy minister and AHS head. Darren Hedley, an associate deputy minister of health, took over the deputy health minister role, she said.

External Investigation

The external review of procurement is being conducted by Chris McPherson, the newly appointed acting deputy minister of Alberta’s executive council.

The premier has said she is confident Wylie will be able to identify procurement issues.

“What we’re looking for is any flaws in the procurement. We’re not doing a witch hunt,” Smith said on Feb. 24 at an unrelated news conference.

She also noted that she had been concerned about the issue, which she says came to her attention through “rumours” about “allegations surrounding misuse of public dollars” and AHS’s procurement process.

The Alberta government has been working on a health system overhaul for some time. It will see AHS transition from a health authority into a hospital service provider. The changes will also divide the province’s health services into four sectors: acute care, primary care, continuing care, and mental health and addiction.

The provincial NDP have called for a judicial public inquiry into the procurement issue. Leader Naheed Nenshi said those named in the allegations should step down. He has also said all procurement at private surgical centres should be paused.

The province dismissed the AHS board on Jan. 31. It was the second time the board had been removed by Smith’s government.