The Mentzelopoulos lawsuit and the procurement allegations
Athana Mentzelopoulos, the former chief executive of Alberta Health Services, was fired in January 2025. In a wrongful-dismissal lawsuit filed the following month, she alleged her dismissal was intended to halt an internal investigation she had launched into procurement practices, conflicts of interest, and political interference in multi-million-dollar health contracts. According to the lawsuit, AHS estimated that companies tied to one Edmonton businessman, Sam Mraiche, had received approximately $614 million in goods-and-services contracts from the agency.
Allegations on the record
- Mentzelopoulos alleged she was pressured by Marshall Smith, then chief of staff to Premier Smith, to approve contracts with a private surgical group at "significantly increased costs."
- The lawsuit alleges that prices proposed by certain private surgical facilities were roughly double the equivalent cost at public or other private providers.
- Mentzelopoulos alleged AHS's own outside legal counsel had recommended the agency seek answers about how a former AHS procurement official, Blayne Iskiw, came to hold a 12 per cent stake in two of those private surgical facilities — and whether anything of value had passed to him or AHS procurement chief Jitendra Prasad from Mraiche.
- According to the lawsuit, Prasad held an MHCare email account during the same period he was working on the children's medication procurement.
- The AHS board, on being briefed, advised Mentzelopoulos to alert the RCMP.
The denials on the record
The Government of Alberta and AHS have filed a counter-claim stating Mentzelopoulos was dismissed for performance reasons, not for her investigation. Marshall Smith has separately filed a defamation suit against the Globe and Mail and against Mentzelopoulos in connection with the reporting and the lawsuit. Sam Mraiche's lawyer has stated, in writing, that Mr. Mraiche and MHCare "have consistently maintained that they have not engaged in any improper conduct" and "remain confident that any fair and objective investigation will reach that conclusion."
None of these allegations or denials has been tested in court.