David Staples: Controversial businessman Sam Mraiche denies wrong-doing in AHS procurement

Edmonton businessman Sam Mraiche says he never had business dealings with members of Danielle Smith’s government over Alberta Health Services contracts.

Mraiche’s various business dealings are at the heart of allegations that the Alberta government pushed AHS to give inflated contracts to Mraiche’s health care supplies company MHCare and other Mraiche companies.

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In a statement, MHCare management said Mraiche did have a “warm and personal” relationship with former NDP leader Rachel Notley and others in the NDP, but negotiated procurement contracts only with AHS, not with members of Notley, Jason Kenney or Danielle Smith’s governments.

“MHCare never had any business with the Alberta government. All contracts and procurements were all completed through Alberta Health Services, and to our knowledge have been in full compliance with their procurement policies and procedures. At no time did MHCare or Mr. Mraiche have contact with the political side of government with respect to these procurements,” the statement from management said.

A number of UCP politicians have been in hot water for attending Oilers playoff games in the MHCare luxury box at Rogers Place. Both the auditor general and an independent investigator are reviewing AHS and government health care procurement practices. The RCMP is also investigating.

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Question Period at the Alberta legislature has been dominated for weeks by these corruption allegations, many of them flowing out of a $1.7 million wrongful dismissal lawsuit by former AHS chief executive officer and president Athana Mentzelopoulos.

Mraiche’s name comes up repeatedly in statement of claim from Mentzelopoulos, with her alleging he had close ties to premier Smith’s former chief of staff Marshall Smith. Such allegations have not been tested in court.

The NDP has charged that Smith’s government bought over-priced and ultimately useless Turkish pain medication and defective hospital masks from Mraiche’s MHCare. As NDP MLA Rakhi Pancholi put it, “The UCP overpaid Sam Mraiche for PPE that was not only unused but was actually useless. Then they paid more to store this useless garbage and then paid more again to have it thrown away. Then the UCP in their eternal wisdom entered into more contracts with Sam Mraiche and his multiple businesses for Turkish Tylenol and then private surgical centres, and we all know how that’s going. This is a clown show of incompetence and grift.”

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In a statement, MHCare fired back at the Alberta NDP. Mraiche said he and Notley were on friendly terms and saw each other occasionally. “More than once Mr. Mraiche hosted Ms. Notley, her staff and ministers at his home, sometimes with others including members of her caucus and her husband. Mr. Mraiche frequently exchanged messages with NDP MLAs and her leadership staff — they often sent personal messages of support and encouragement, including posting public mentions of his philanthropic work. It is important to note that Mr. Mraiche had no business dealings with the government of Ms. Notley.”

In his own statement, Mraiche said that Notley has scrubbed her social media accounts of their relationship. On Facebook in 2020, after Mraiche organized with three NGOs to send five cargo shipments of relief supplies to Beirut, Lebanon, after a terrible port explosion there, Notley posted, “I know Sam personally. He has a huge heart. This is an awesome initiative.”

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Said Mraiche, a self-described proud Canadian Lebanese Muslim, “It was disappointing to see the former premier attempt to cleanse away any previous mention of me. Just as it is disappointing to see the NDP in the legislature repeatedly making misleading and, often, downright false assertions about the work my company has done for AHS.”

Notley could not be reached for comment, but Alberta NDP Leader Naheed Nenshi responded. “To the best of my knowledge, I have never met Mr. Mraiche. While some of my caucus members have met him briefly at events, none have a relationship with him. He has donated to Alberta’s New Democrats in the past, like thousands of other Albertans. These are a matter of public record. I am not aware of any government business with Alberta’s New Democrats and certainly not of any kickbacks while the party was in government.”

What to make of this latest round?

First, it’s interesting to note how close Mraiche has been to different Alberta government leaders. We can see that he was liked by political leaders on both sides of the aisles.

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Of course, many business leaders are close to politicians from different and opposing parties. It’s standard practice for business leaders to seek out and socialize with politicians. There’s no foul play so long as its transparent and within the government’s hospitality rules on accepting gifts.

Politicians like Smith and Notley meet all kinds of folks to seek out ideas, support and donations. Notley’s also free to do as she will with her social media. She met Mraiche in the context of him doing a good deed for Lebanon. Why not celebrate that? Now that the NDP-MHCare relationship has soured, Notley axed her old Facebook post to reflect that new context. Not a big deal.

Where Mraiche’s comments are interesting is his insistence he had no business dealings with Smith’s inner circle. This claim will be tested by the police and two independent government reviews. I’ll wait to hear from them before making up my mind on the crucial matter.

dstaples@postmedia.com

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