AHS’ CFO leaves over expense claims

A senior official has agreed to leave his post at Alberta Health Services after a freedom of information request shed light on what some would consider his lavish spending.

Allaudin Merali was hired in May of this year as executive vice-president and chief financial officer of AHS.

Earlier this year, AHS was asked for records relating to Merali’s expense claims, from January 2005 to August 2008 when he worked with the former Capital Health Region in Edmonton.

The 146 claims totaled $346,208 for things like dinners, attending conferences and membership dues.

But Merali also expensed costs relating to his Mercedes Benz, including maintenance, insurance, registration and car washes. He also billed the health region for $540 in phone calls while on a cruise ship and thousands of dollars in meals, airline tickets and hotel rooms.

Acting CEO Chris Mazurkewich said developing relationships with external partners and business and hosting events were a necessary part of his duties at the time, but “after reviewing the records, we are concerned…that they will detract from his ability to act as AHS’ chief financial officer.”

Merali previously worked for eHealth Ontario, and concerns were also raised there about expenses he recorded while under contract. AHS said they were aware of that when they hired him, but were not aware of his spending with the Capital Health Region.

Mazurkewich added that they were concerned that “AHS will be put into a position where its commitment to uphold the highest standards of accountability and public confidence in Alberta Health Services could be left open to doubt.”

With the expenses now public, some, like Friends of Medicare say it’s clear too much money is being spent on health executives, instead of actual health care.

“It’s not okay, it’s definitely not okay,” said Sandra Azocar, the executive director of Friends of Medicare. “It’s an outrage. And certainly the government needs to be looking at what it is they do with management.”

In a statement, Alberta’s health minister said he is also concerned about the expense claims.

“While travel and hosting expenses can be part of regular business, institutions such as AHS are funded by taxpayers’ dollars and, as such, taxpayers rightly expect accountability,” said Fred Horne. “I have been assured by AHS that policies and processes that are in place today are far more stringent than what was in place under the former Capital Health Authority.”

In an effort to be more transparent, AHS has since asked the auditor general to review their policies and practices and will publicly post expense records from the CEO, executive vice-presidents and senior vice-presidents in the coming weeks.

All of Merali’s expenses, however, had been approved by then Capital Health CEO, Sheila Weatherill, who now sits on the AHS board to which she was appointed by the health minister.

Merali no longer works for the AHS and will receive severance pay in accordance with his employment contract.

How much that will be is not known.

“That’s a personal matter that’s under negotiation at this point in time,” said Mazurkewich.
Allaudin Merali expense claims

 

With files from Ross Neitz, Global News