UCP Gifts, conflicts & Connections
TL;DR:
Danielle Smith and Justin Wright at the Medicine Hat College.
This investigative report uncovers a web of conflicts of interest, questionable procurement practices, and ethical failures within the Alberta government, centering around businessman Sam Mraiche and his connections to Premier Danielle Smith and other government officials. Mraiche, through his companies MH Care Medical and Carver Corporation, has secured over $250 million in sole-source government contracts for personal protective equipment (PPE) and children's medication, despite significant quality control issues and ethical concerns. The report also reveals how Mraiche's accountant, Sam Jaber, who was appointed to a government board by Smith, gifted her and her staff expensive skybox tickets to a hockey game, raising further ethical red flags. The investigation highlights a pattern of favoritism, lack of transparency, and potential misuse of taxpayer dollars, with ties to private healthcare expansion, lobbying, and political influence.
In-Depth Investigative Report: The Web of Connections and Conflicts in Alberta's Government
Introduction
The Alberta government, under Premier Danielle Smith, has been embroiled in a series of controversies involving questionable procurement practices, conflicts of interest, and ethical failures. At the center of this web is businessman Sam Raiche, whose companies have secured over $250 million in sole-source government contracts for PPE and children's medication, despite significant quality control issues and ethical concerns. This report delves into the intricate connections between Raiche, his associates, and key government figures, exposing a pattern of favoritism, lack of transparency, and potential misuse of taxpayer dollars.
The PPE Scandal: A Questionable Start
The story begins in early 2020, at the onset of the COVID-19 pandemic, when Alberta Health Services (AHS) awarded a $228 million sole-source contract to Raiche Holdings Corp. for PPE. The company, run by Sam Raiche, had no prior experience in healthcare or PPE supply. The masks, branded under the name "Vanish," were of such poor quality that many did not fit healthcare workers properly, had nose pieces that failed to hold their shape, and even emitted an odor that made workers sick. Despite these issues, the government continued to use the masks, and Raiche's company, MH Care Medical, was born out of this contract.
The Children's Medication Boondoggle
In late 2022, during a nationwide shortage of children's pain and fever medication, the Alberta government signed an $80 million deal with Turkish pharmaceutical company Atabay, brokered by MH Care Medical, to import 5 million bottles of children's acetaminophen and ibuprofen. The deal was announced by Premier Smith and then-Health Minister Jason Copping, who claimed the medication would be available in pharmacies by Christmas. However, the medication did not arrive until March 2023, well after the shortage had been resolved. The imported medication had dosage issues, lacked childproof caps, and did not meet Health Canada's labeling and packaging standards. Only 13,700 bottles were ever distributed to hospitals and pharmacies, leaving taxpayers to foot the bill for the remaining 4.986 million bottles.
The Skybox Scandal: Gifts and Conflicts of Interest
In May 2023, Premier Smith accepted expensive skybox tickets to a Stanley Cup playoff game from Sam Jaber, an accountant and business associate of Sam Raiche. Jaber, who was appointed to the Board of Invest Alberta by Smith, also gifted tickets to Smith's staff, including her chief of staff, Marshall Smith, and executive director of communications, Becca Polak. The acceptance of these gifts raises serious ethical concerns, as Jaber's business ties to Mraiche and his role in setting up companies involved in private healthcare expansion create a clear conflict of interest. Furthermore, the tickets were initially paid for using a government purchasing card, and while Polak reimbursed the government, there is no evidence that Marshall Smith did the same.
The Network of Influence: Lobbying and Private Healthcare Expansion
Sam Mraiche's influence extends beyond PPE and medication. Through his accountant, Sam Jaber, Raiche has set up multiple companies with surgeons and anesthesiologists advocating for the expansion of privately delivered, publicly funded healthcare. These companies, including Alberta Surgical Group, have lobbied the government for contracts, with the lobbying firm P3 Capital Partners, run by Doug Horner, cousin of current Finance Minister Nate Horner. Nate Horner attended two hockey games as a guest of Mraiche, further blurring the lines between personal relationships and government business.
The $2.2 Million Contract with the 18 Nation of Alberta
Mraiche's business empire also includes a $2.2 million contract with the 18 Nation of Alberta, signed by Aaron Barner, the senior executive officer of the 18 Nation and a business partner of Mraiche. The contract, which begins in 2025, raises questions about the influence of personal relationships in government procurement and the potential for favoritism.
The Ethical Failures and Lack of Transparency
Throughout these scandals, the Alberta government has demonstrated a lack of transparency and accountability. Freedom of Information requests revealed that the government lied about the payment of hotel expenses for the skybox trip, and there is no evidence that the rules for accepting gifts were followed. The government's refusal to answer questions and provide transparency has only fueled suspicions of corruption and unethical behavior.
Conclusion: A Pattern of Favoritism and Misuse of Taxpayer Dollars
The web of connections between Sam Mraiche, his associates, and key government figures reveals a pattern of favoritism, conflicts of interest, and potential misuse of taxpayer dollars. From the questionable procurement of PPE and children's medication to the acceptance of expensive gifts and the expansion of private healthcare, the Alberta government has failed to uphold the ethical standards expected of public officials. The lack of transparency and accountability only deepens the concerns, leaving Albertans to wonder who their government is truly serving.
As this investigation shows, the erosion of ethical guardrails and the influence of private business interests in government decision-making pose a significant threat to the public trust. It is imperative that these issues are addressed to ensure that taxpayer dollars are used responsibly and that the government works in the best interest of all Albertans.
This report is based on extensive research, including Freedom of Information requests, corporate records, and public statements. All facts presented are supported by evidence, and the connections between the individuals and entities involved have been carefully documented. The goal of this investigation is to shed light on the ethical failures and conflicts of interest within the Alberta government and to call for greater transparency and accountability in public office.
