Expense claims suit likely futile
Province won’t go after former health executives, Horne says
CALGARY — A governmentcommissioned legal opinion has poured cold water on the prospect of the province recovering improper expense claims by former health executives.
The report was ordered by Health Minister Fred Horne in April. It concludes that Alberta Health Services can’t recover claims more than two years old.
And the chances of a successful lawsuit remain slim, according to the opinion from Duncan Craig LLP, released Tuesday.
“Absent proof of significant misconduct or wilful misrepresentation on the part of the employee, a court would likely not look favourably upon AHS attempting to recover funds which were ... ultimately authorized by AHS.”
An AHS spokesman referred questions on the legal opinion to Horne, who wasn’t available for an interview Tuesday.
In a statement, Horne said the Redford government won’t waste taxpayer money on futile lawsuits.
“I am disappointed that any improper claims that may have been made by previous healthcare administrators cannot be recovered, but the changes our government made to the expense policy will prevent anything similar in the future,” he said.
Documents show then-AHS chief financial officer Allaudin Merali billed about $350,000 for claims including meals at pricey restaurants and butler services while working at Capital Health between 2005 and 2008. He has since denied making inappropriate claims.
More recently, documents released by the Wildrose party in April showed former Capital Health vice-president Michele Lahey billed taxpayers more than $7,000 for a 2007 trip to the Mayo Clinic to confirm her cancer-free diagnosis.
Her former boss, Sheila Weatherill, quickly cut a $7,800 cheque to the province, saying it was a mistake to approve Lahey’s expenses.
On Tuesday, Wildrose MLA Heather Forsyth said the Redford government is failing Albertans if it abandons efforts to pursue inappropriate health brass spending, adding the Duncan Craig report is “one legal opinion.”
Liberal MLA David Swann said the Tory government has to learn from its past mistakes.
“I think we always have to keep digging up important examples from the past to remind the current government this is always a danger when they’re handling money and power for so many years.”
AHS has said its expense policies are stricter than those of the province’s disbanded health regions, such as the former Capital Health. The authority also now posts current executive expenses on its website.
In April, Horne announced the government had asked former chief justice Allan Wachowich to provide a legal opinion on recouping any questionable expenses.
However, Edmonton-based firm Duncan Craig performed the review after Wachowich recused himself, “because his law firm previously had health authority contracts,” according to Alberta Health spokesman John Muir.