EDMONTON — One of Alberta Premier Danielle Smith’s cabinet ministers stepped down on Tuesday, citing serious concerns about the procurement contracts being signed throughout the government. This resignation arrived on the very first day of the legislative spring session, amid a growing scandal involving allegations of arm-twisting and favoritism concerning multimillion-dollar health contracts.
Peter Guthrie, who served as the Minister of Infrastructure, announced his decision as part of his resignation letter, stating he had advocated for months for improved guardrails, including the establishment of a financial oversight committee dedicated to reviewing major government contracts. "Unfortunately, the majority of cabinet does not appear to share my concerns," he remarked, asserting the necessity for transparency and fiscal responsibility within the government.
Guthrie indicated his intention to remain part of the governing United Conservative Party (UCP) caucus as a backbencher. "I can continue to voice my concerns and hold cabinet accountable with honesty and integrity," he noted. Above all, he emphasized, "It is imperative for the public to have confidence in its government and its processes. We were elected to be open, transparent, fiscally responsible and — above all — honest with Albertans."
Earlier this month, Guthrie had gained attention when he publicly urged Health Minister Adriana LaGrange to resign amid the investigations surrounding the procurement practices at Alberta Health Services (AHS). Despite his calls, LaGrange remains supported by both the Premier and various ministers within the cabinet.
Currently, two investigations are now underway: one led by the auditor general and another launched by the government itself. Premier Smith, acknowledging the seriousness of the allegations involving AHS contracts, expressed her agreement with Guthrie's resignation. “I have accepted Guthrie’s resignation and agree the allegations surrounding certain contracts signed by Alberta Health Services are serious enough to merit investigation," Smith said.
Smith has also taken steps to investigate the procurement practices, declaring she will engage credible third-party legal experts to gain insight divorced from governmental influence. “I want to reiterate, I was not involved in these procurement decisions, nor am I aware of any wrongdoing with regards to the issues raised by the former CEO (of AHS),” she said.
The backdrop of these allegations stems from a lawsuit filed by Athana Mentzelopoulos, AHS’s former CEO, who claims she faced intense pressure from officials linked to the premier’s office to sanction overpriced contracts for private surgical companies. Her lawsuit asserts she initiated both internal investigations and forensic audits concerning procurement practices at AHS last fall, but was terminated on January 8, prior to the audit's completion.
Despite the existing investigations, Smith refrained from mandatorily ordering departments to examine their connections to firms mentioned within the lawsuit. "What we're investigating are flaws within procurement practices; we’re not conducting witch hunts to unearth every transaction made by every business," Smith clarified.
This scandal has prompted harsh critiques from the opposition, with the NDP branding it the “CorruptCare” scandal and calling on Smith to fire LaGrange and initiate a public inquiry led by a judge. NDP Leader Naheed Nenshi emphasized the gravity of the situation, reflecting on Guthrie’s resignation as indicative of broader unease within the UCP. "Do I want to be the one holding the bag when the music stops?" he pointedly questioned.
Before his resignation, Guthrie notified Alberta’s auditor general about a real estate transaction last summer between his ministry and Sam Mraiche, the owner of MHCare Medical, who is implicated within the lawsuit. Mraiche’s company secured a $70 million contract to supply pediatric pain medication from Turkey, yet the government received only about 30 percent of the order, eventually ceasing use of the medication due to safety shortcomings. What adds to the controversy, several ministers, including Guthrie, have acknowledged taking luxury box tickets to Edmonton Oilers playoff games courtesy of Mraiche shortly after the contract's approval, raising eyebrows over ethical standards.
Guthrie's resignation occurs just before the tabling of the provincial budget on Thursday, as several legislative initiatives loom over the session. These include the Automobile Insurance Act, aimed at enhancing access to affordable insurance, the Utilities Statutes Amendment Act, which purportedly ensures reliable and affordable electricity, and the Compassionate Intervention Act, pivotal to Alberta’s addiction recovery strategies.
The saga surrounding the UCP government continues to capture public attention as the clock ticks down to the scheduled budget announcements. With the cloud of corruption allegations hanging over the government, Albertans are awaiting concrete actions to restore faith and integrity to their elected officials.