Albertans fuming over Merali’s expense claims

EDMONTON – Alberta Health Services CFO Allaudin Merali left his position with AHS Wednesday, 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.

Alberta Health Services board member Sheila Weatherill, who signed off on many of Merali’s claims, spoke with Health Minister Fred Horne Wednesday night and offered her resignation.

“She indicated to me that she felt the reputation of Alberta Health Services and – even more importantly – public confidence in our health care system was the most important thing at the present time, and in that vein she offered her resignation and I accepted her resignation,” explained Horne.

During a radio interview early Thursday morning, Horne said, “I am concerned, and I understand why Albertans are concerned about these expenses. They appear to be a very extravagant use of their tax dollars.”

Global News tried contacting Merali by phone and in person, but received no response. 

“In addition to the shock of the expenses,” adds Horne, “the question is how is this permitted to happen?”

It’s a question that opposition parties feel Horne – and the Redford government – should have answers to.

“Is this the tip of the iceberg?” asks Liberal party leader Raj Sherman.

“How many Albertans were denied care as a result of this waste?”

“And for the Minister of Health to say he does not know who’s controlling the $9 billion deficit for which he is charged with is extraordinarily disingenuous.”

“The Health Minister admitted that he didn’t know the backgrounds of senior health officials,” says Wildrose MLA Shayne Saskiw.

Horne says AHS has assured him that there are policies in place today that are far more stringent than what was in place under the former Capital Health authority.

“It is very clear that the board of Alberta Health Service and I will be having some very, very serious conversations,” adds Horne.

When asked about Merali’s departure, Horne agrees it was the right move to have him leave.

“This is something that is clearly unacceptable to government and to Albertans, and I believe the appropriate action was taken.”

The Liberal leader feels this latest controversy is indicative of a bigger issue.

“The PCs have been entitled to their entitlements for years. This is the pinnacle of arrogance. The story broke today because they were caught with their hand in the cookie jar.”

“He said we shouldn’t throw the baby out with the bath water, when it comes to Alberta Health Services,” says Saskiw, referencing Horne, “but you should if the bath water is toxic.”

Speaking at a news conference Thursday morning, Horne says he was not aware of Merali’s expense controversy with eHealth Ontario before he returned to Alberta to work with AHS. Horne says he’s “dumfounded” Merali was hired, and adds he’s outraged, as is the government.

How or why Merali was hired after his spotty expense history has Horne confused.

“This is one of a number of serious questions I have for the Alberta Health Services Board,” he says.

Horne doesn’t oversee the hiring process of AHS but thinks perhaps there should be some government oversight.

AHS was created in 2008, by then Minister of Health and Wellness, Ron Liepert. The move brought together 12 formerly separate health entities across the province (including Capital Health), and the hope was to streamline the delivery of health supports and services across the province.

“I want answers to these questions. Albertans want answers to these questions, and I will continue speaking with the board members until I am satisfied that I’ve gotten to the bottom of it and I have those answers,” says Horne.

Sherman questions the hiring process, and how someone with Merali’s history would be offered a job by the Alberta government.

“The same gentleman was censured by the Auditor General, Capital Health region, for cooking the books… and this government hired this gentleman to be the chief comptroller of a $40 billion budget?”

Horne says the PCs want to get to the bottom of this situation as well.
“It is not satisfactory that this goes unexplained. Albertans deserve answers and more importantly as minister I have to make sure I have the assurance that the appropriate systems and processes so that this cannot happen again.”

Horne adds it may take a few months for Albertans to get answers about this situation, as the investigation may take some time to be completed properly.

Moving forward, Horne promises to get answers from AHS and remain transparent.

“Freedom of information requests shouldn’t have to be the only recourse that’s available for taxpayers who want to determine how their dollars are being spent.”

When asked if Merali will receive severance pay, Horne replies, “My understanding is that he has a contract from Alberta Health Services that has a severance provision in it.”

When asked if he thought Merali deserved a severance, Horne responds, “I don’t think any Albertan in a situation like this would come to the conclusion that that is appropriate, but I want to be careful here, there’s an employment contract in place.”

He believes AHS is in the process of settling that element of the contract with Merali, and the details will be made public once they have. However, he doesn’t know the details of the severance agreement.

“Like every Albertan, I am watching that part of this very carefully.”

Sherman says an independent investigation is required, and much more needs to change about Alberta’s health care system.

“I recommend that this government and Premier Redford dissolve the AHS board immediately, that they order a forensic audit of Capital Health and AHS books, and we have a public inquiry into the patient safety concerns of AHS and Capital Health.”

The Auditor General is looking at AHS’s internal processes and AHS has made a commitment to make all future expense claims public.

“I think what we have to do,” says Horne, “is go forward from where we are, and that isn’t to suggest that we don’t acknowledge what happened here, that we don’t try to get to the bottom of what could have happened, but really the only option is to continue to move forward.”

“Should we have known? Probably. Should it have been a factor? Probably. But more importantly – what are we going to do about this?”