Infrastructure minister resigns amid concerns over UCP procurement practices
By Sam Leishman - Lethbridge Herald Local Journalism Initiative Reporter on February 26, 2025.
Alberta’s Minister of Infrastructure has unexpectedly stepped down from his position amid growing concerns about the UCP government’s procurement practices.
Peter Guthrie, MLA for Airdrie-Cochrane, posted his resignation letter to social media Monday, mere hours before the Legislative Assembly began its spring session. 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 benefitted 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 of 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 continues in his letter that some of the issues could have been avoided if his ideas had been implemented, yet he writes that “the majority of Cabinet does not appear to share my concerns.”
Guthrie says he will be returning to caucus as a private member in an effort to continue to make his voice heard and hold cabinet accountable. “It is essential that the public has confidence in its government and its processes. We were elected to be open, transparent, fiscally responsible and – above all – honest with Albertans.”
Premier Danielle Smith released a short written statement Tuesday afternoon saying that she has accepted Guthrie’s resignation and acknowledges his many serious concerns. She states that the UCP government is cooperating fully with the AHS investigation “so we can have answers as soon as possible.”
“I want to reiterate that I was not involved in these procurement decisions, nor am I aware of any wrongdoing with regard to the issues raised by the former CEO,” Smith wrote. “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 yesterday regarding the official opposition’s priorities for the current assembly session.
“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 Gary, adding her party will use every tool it has to hold UCP ministers accountable for what she considers an increasingly government-wide scandal.
NDP Leader Naheed Nenshi added that Smith has a tough task ahead of her to replace Guthrie among what he calls a low-performing UCP caucus. He says Albertans need an infrastructure minister who is ethical and competent, and won’t overspend taxpayer dollars.
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