Alberta premier’s former chief of staff suing fired health CEO, news outlet

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This article was published 16/05/2025 (314 days ago), so information in it may no longer be current.

EDMONTON – Alberta Premier Danielle Smith’s former chief of staff is suing the fired CEO of the province’s front-line health agency and the newspaper that first reported allegations of corruption in multimillion-dollar health contracts.

Marshall Smith has filed a statement of claim alleging defamation against former Alberta Health Services head Athana Mentzelopoulos, the Globe and Mail, and an unidentified person believed to be a former AHS board member.

It comes after Mentzelopoulos, in her own lawsuit filed in February, alleged high-ranking health ministry staff, as well as Marshall Smith, pressured her to sign off on contracts for private surgical facilities despite concerns over high costs and who was benefiting. Her suit alleges she found potential conflicts of interest and was wrongfully fired for looking into questionable deals.

The allegations have sparked an RCMP investigation, a government review led by a former Manitoba judge, and a probe into health-care procurement by Alberta’s auditor general.

Smith’s statement of claim, filed in court Wednesday, says allegations about him in the Mentzelopoulos lawsuit are “gratuitous, irrelevant and are unnecessary,” and because he’s not named as a defendant he can’t respond to them or provide a statement of defence.

His lawsuit alleges false statements from Mentzelopolous and published in the Globe paint him “in the worst possible light,” including the suggestion he’s a “bully” or involved in criminal activity.

The document says he was not involved in the bidding, negotiation, selection, procurement or awarding of contracts to surgical facilities.

“Smith made no threats, or innuendo of threats to Mentzelopoulos, had no power to direct Mentzelopoulos, and did not attempt to advance the interests of these private parties, other than to seek answers as to the status of their contracts,” the lawsuit says.

It also refers to a Jan. 20 letter from a lawyer for Mentzelopoulos to AHS, which was the subject of a Globe article. Smith’s lawsuit alleges the letter was shared with the newspaper by someone believed to be on the AHS board and is liable for damages.

Smith’s lawsuit further alleges damage caused by Mentzelopoulos and the Globe has resulted in emotional distress, stress, depression, anxiety, embarrassment, loss of reputation, humiliation and an inability to find work in his profession.

He is seeking $12 million in damages.

Smith previously said the Mentzelopoulos allegations are “outrageous and false.”

AHS and Health Minister Adriana LaGrange, who are named as defendants in the Mentzelopoulos lawsuit, have said in statements of defence that the former CEO was fired for failing to do her job and dragging her feet on much-needed health-care system reforms.

None of the allegations in the lawsuits have been tested in court.

Neither the Globe nor the lawyer for Mentzelopoulos immediately responded to requests for comment Friday. 

Marshall Smith’s lawyer, Philip Prowse, said he has no further comment at this time as the lawsuit is before the courts.

This report by The Canadian Press was first published May 16, 2025.