EDMONTON – Allaudin Merali, the former Capital Health CFO who made headlines when his expense claims were made public, has launched a lawsuit against Health Minister Fred Horne and Alberta Health Services (AHS).
A Statement of Claim (a commencing document for a lawsuit) filed Friday names the health minister and Alberta Health Services as defendants.
Merali is seeking $5.5 million in damages, plus $611,000 per year in lost wages starting from Aug. 1, 2012.
The Statement of Claim includes claims for a breach of contract, defamation, and loss of income. (Read the full Statement of Claim below).
It says, as a result of a defamatory statement and the conduct of the defendants, Merali was exposed to “irreparable harm, odium, contempt, ridicule, and embarrassment”, his reputation has been lowered, and he suffered financial loss and damage.
Merali is seeking $610,937 per year from Aug. 1, 2012 on in damages for continuing loss of income and benefits; $4 million in general damages for future loss of income and benefits; $500,000 in aggravated damages; $1 million in punitive and exemplary damages; plus interest and legal costs.
When asked for a response, Horne offered the following statement: “The government’s position on executive compensation and expenses is very clear. As this matter is before the court we will not comment further.” An AHS spokesperson says they cannot comment on the matter for the same reason.
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Merali left his position with AHS in August 2012, after his expense claims at a previous health position became public. The documents showed 146 expenses from 2005-2008, for things like pricey dinners, membership dues, car repairs, alcohol, and hotel visits. The expenses totaled $346,208.
AHS board member Sheila Weatherill, who signed off on many of Merali’s claims, offered her resignation shortly after.
READ MORE: Albertans fuming over Merali’s expense claims
That same month, the AHS board announced it would withhold Merali’s severance package – an estimated $425,000.
In December 2012, Merali issued a statement regarding the expenses and the results of an independent external audit, saying he abided by the expense standards in place at Capital Health at the time, and didn’t feel he should be singled out or held up to different standards than other health executives.
In a statement released Friday, Merali says the Statement of Claim was filed by his lawyer on Friday in the Court of Queen’s Bench of Alberta.
“I joined AHS as Executive Vice President and Chief Financial Officer in 2012 in good faith, to help build a leading health care system for all Albertans,” reads the statement.
“The Minister of Health personally encouraged me to take the job. I was given a long term contract but was dismissed after only a few months. Although there was no allegation of just cause for dismissal, circumstances had arisen involving public disclosure of claims for reimbursement of expenses, incurred several years earlier with a different employer, Capital Health. AHS understood that those expenses had been properly incurred for the benefit of Capital Health.”
Read Merali’s full statement below.
“The circumstances which led AHS to reverse its position will be the subject matter of evidence in the legal action which is now before the Court,” he said.
“What is apparent from widely publicized statements by the Minister and other government representatives is that my expense claims were spun by the Defendants to make me a scapegoat and to distract the media and the public from issues with other AHS executives.
“I was held to a different standard than the one enjoyed by others who have not been made the subject of public ridicule by the government,” Merali added.
He also said defamatory statements were made that called his integrity into question and have now negatively impacted his ability to work in a similar role elsewhere in Canada.
“As a result I have no choice but to file a claim to seek compensation for my loss of employment and damage to my reputation.”
None of the allegations in the claim has been proven in court.
Merali has indicated he will not comment further on the proceedings until they are no longer before the Courts.
More to come…
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