Minister of Infrastructure Peter Guthrie is sworn into cabinet in Edmonton on June 9, 2023. Citing concerns stemming from the ongoing procurement scandal with AHS and the government, Guthrie has announced his resignation from Premier Danielle Smith's cabinet.--CP FILE PHOTO
asmith@medicinehatnews.com
Alberta’s Minister of Infrastructure Pete Guthrie announced his resignation on Tuesday, citing concerns over the province’s procurement practices.
An image of the letter detailing the resignation was posted to the Airdrie-Cochrane MLA’s X account on Tuesday.
“In recent months, I have voiced concerns regarding the Government of Alberta’s procurement practices across all departments,” said Guthrie in the letter. “As Minister of Infrastructure, I had line of sight into these processes and took steps to address inconsistencies and recommend improvements as part of my fiduciary duty.”
He states that his attempts to “address inconsistencies and recommend improvements” across all departments have fallen short.
Guthrie specifically points to his work regarding Bill 13, otherwise known as The Real Property Governance Act, which is meant to improve how public property is managed and sold, as well as his idea to establish a Financial Oversight Committee that would advise on major government contracts.
The Edmonton Journal revealed late last week that Guthrie notified the auditor general about a land purchase his department completed last summer without his knowledge. The infrastructure department has launched an independent audit into this transaction and any others over the past two years that might be deemed abnormal to ensure procedures were followed accurately.
Though land deals without ministerial consent are allowed according to a long-standing policy, The Tyee, a BC-based independent news magazine, first reported that the sale benefited a corporation led by the founder of MHCare, Sam Mraiche, to the tune of $300,000.
Mraiche is tied to the recent Alberta Health Services procurement scandal, with MHCare, a medical supply company, allegedly receiving more than $600 million in government contracts. The same company also spent $70 million in taxpayer money to import five million bottles of children’s pain medication from Turkey two years ago during a national shortage. A $49-million credit is still hanging in the balance after Health Canada only approved 1.5-million bottles for import.
According to a cabinet memo obtained by CBC, Guthrie has been vocal that Health Minister Adriana LaGrange should step down until the investigation into the widespread corruption allegations brought forth by former AHS CEO Athana Mentzelopoulos is complete.
Guthrie stated his intent is to return as a private member of caucus, to continue to voice his concerns and strive for accountability.
“It is essential that the public has confidence in its government and its processes,” said Guthrie. “We were elected to be open, transparent, fiscally responsible and – above all – honest with Albertans.”
Premier Danielle Smith released a statement on the same day, stating that she has accepted Guthrie’s resignation.
“He has obviously expressed concerns regarding the allegations made by the former CEO of Alberta Health Services. As I have said repeatedly, those allegations are serious and are being fully investigated,” said Smith. “We have pledged our government’s full cooperation and support to the Auditor General to expedite his review so we can have answers as soon as possible.”
She stated that she has also directed “senior civil service to retain a highly credible third party with a strong legal background capable of investigating this matter independently of government.”
Smith also reiterated her claim that she was not involved in or aware of any wrongdoing with regard to the procurement scandal.
“My actions were straightforward: the government made a policy decision to expand surgical facilities to tackle the critical issue of wait times, and we all trusted that that direction would be acted upon and implemented by AHS.”
Christina Gray, New Democrat House Leader, fired back during a press conference Tuesday.
“This resignation should have been the health minister, and the premier should be stepping aside for a judge-led inquiry that the public can have trust and confidence in,” said Gray.
