Allaudin and his wonderful expense account? Departing Alberta Health Service executives may not be exactly as illustrated. Below: One of the few photos available of Allaudin Merali; CBC investigative journalist Charles Rusnell.
One is practically struck dumb by the astonishing CBC revelation that the Chief Financial Officer of Alberta’s massive single public health care agency was once accustomed to spending public money on his expense account as if there were no tomorrow.
Indeed, after yesterday’s revelation by the only investigative journalist still gainfully employed in that field in Western Canada that Allaudin Merali submitted expense claims for such items as fine wines, succulent gourmet meals and repairs and upgrades to his foreign-made luxury automobile totalling $346,208 to the old Capital Health Region between January 2005 and August 2008, there was no tomorrow.
Leastways, Mr. Merali’s career with Alberta Health Services, which took over the operations of the Capital Health Region in May 2008, was abruptly terminated mid-afternoon by the top bosses of the health behemoth, which is Canada’s fifth largest employer.
Back in the day when all this was apparently going on, by the way, Mr. Merali was CFO of Capital Health at an annual salary of $487,000 a year, give or take. Despite that healthy income, apparently no item was too picayune to escape inclusion in his busy expense account. Tea and a muffin? A bottle of soda? Minor parking fees? In they went!
Yesterday’s soothing AHS press release that announced Mr. Merali’s unexpected departure – which is sure to be a comfortable one, with a rich payout euphemistically referred to in the AHS statement as “a severance in accordance with the terms of his employment contract” – went to great lengths to assure taxpayers the expenses were nevertheless legitimate.
“Mr. Merali’s responsibilities in previous roles in health care included developing relationships with external partners, businesses and service providers and acting as an official representative in numerous meetings and functions. This included hosting events as well as representing the organization locally, nationally and internationally,” the news release urged readers to understand.
“These were an integral and necessary part of his duties,” we were assured by Acting AHS Chief Executive Chris Mazurkewich, who is normally AHS’s executive VP and chief operating officer, while CEO Chris Eagle was enjoying a hitherto quiet vacation somewhere far enough away not to have to put in an appearance.
Still, notwithstanding the complete legitimacy of these expenses large and small – which are thoroughly set out in the CBC story by investigative journalist Charles Rusnell, the man whose Freedom of Information request caused Mr. Merali’s well-appointed house of cards to tumble – the province-wide health agency quickly determined that the discovery “will detract from his ability to act as AHS’ Chief Financial Officer…” And thus it was… Allaudin, be gone!
It is known that after his departure from Capital Health, Mr. Merali moved to Ontario where his expense accounts as a consultant for EHealth Ontario, the government agency with the job of implementing that province’s electronic health records system, also made uncomfortable headlines.
It is not known if Mr. Merali’s expense accounting habits continued after his return to Alberta Health Services – although it is safe to assume that question will be asked at this morning’s news conference by Alberta Health Minister Fred Horne, at which pandemonium is certain to reign.
So what conclusions can we draw at this early moment in a story that is sure to linger uncomfortably for a long time? Here are just a few:
- Very few people involved will escape embarrassment for something certain to outrage large segments of the taxpaying public. Indeed, it is fair to ask, how could this have been allowed to happen? Sheila Weatherill, once the well-paid CEO of Capital Health and back again as a member of the AHS Board, signed off on these expenses. Mr. Horne, back in the day as a health care consultant, enjoyed a nice meal on Mr. Merali’s tab – which means your tab and mine, baby!
- Indeed, it is fair to say that if this had been revealed before the April 23 Alberta election, Danielle Smith would be premier of Alberta today! Ms. Smith, the leader of the Opposition Wildrose Party, was of course beaten by Premier Alison Redford and her Progressive Conservatives, in large part on the premier’s promise to preserve and protect Alberta’s public health care system – though surely this wasn’t the kind of thing voters had in mind.
- Friends and foes of public health care alike will see arguments for their positions in this mess. And it is hard to avoid the conclusion that this kind of thing is why our public health care system costs so much. Surely it indicates that the superstition public sector managers must be paid and babied like corporate bosses has to end. Good people can be found who will run sophisticated organizations well out of a sense of public service and not bill their muffins and luxury car repairs to the taxpayer.
- And Charles Rusnell, who broke this story and many others like it, will never win the National Newspaper Award he deserves. Why is that? Well, he doesn’t work for a newspaper any more, does he? Mr. Rusnell works for the “state broadcaster” that Canadian Conservatives would dearly love to destroy – and you can see why! The Edmonton Journal got him and many other talented journalists off its payroll long ago.
This post also appears on Rabble.ca.
ONe possible side effect of this controversy is that it adds ammunition to the government’s original case for the abolition of the regional health authorities. One of the stated rationales at the time was lack of financial accountability and transparency in the 9 RHAs and three provincial health boards. AHS has very strict policies around such matters, but some (if not all) of the “former health entities” had more lax rules in place, as evidenced by this event, which occurred well before AHS was created.
His expense claims are the epitome of greed and abuse. One of the things that caught my eye was receipts for Safeway and take-out claimed as “Dinners at Home.” I suppose that in his world groceries are considered a business expense when there’s no conference to attend at a fancy hotel and no business meetings with buddies at posh restaurants.
Another one that was brought to the surface. I wonder how many more are still burried in the crap pile. All I can say as a citizen is fire them all. Give them the treatment all of us normal human beings go through when we do something like that. By the way, no golden handshake for this crook, why should he get one? You mean our JUSTICE system would force us to?
What is more astounding about all of this is that there is never a solution to stop this kind of behavior. The reason is because most of them just cannot wait to have the same chance of living without limits once they get there. There is a solution and that is to create a Council of Albertans that will be replaced during election times to avoid the creation of Mafias. This group of regular citizens would in conjunction with the provincial auditor keep an eye on all of what is going on in the province that deserves attetion and would bring that to the attention of the auditor.
Every single politician, including the premier should submit their travel needs to this body for approval. Our polijunkets do not deserve any better.
I know I know, some people will be saying this would not attract the best politicians we need to run the province. Well I disagree, at least it would attract those that are serious about their commitment to the province and its citizens. In my life, honest people with principles have made the best politicians I have known. Very smart crooks only left deficits and the now pervasive abusive and disrespectful atittude towards govenment and what it means. The extreme individualism and they versus us atittude is what is killing our chances to be who we deserve to be.
Where’s a cookie when you need one, eh?
Kudos to Charles Rusnell for his great investigative journalism.
Another way of looking at this is maybe you wanr your senior bureaucrats in beastmode 24/7. As you point out, part of his job description included “developing relationships with external partners, businesses and service providers.”
Well, to do this well you need to project an image of dynamism and success, of somebody who’s “going places.” Because that’s what people want to be associated with, a winner. That’s human nature. I can think of no better way of achieving this goal than with an unlimited expense account.
What about the $346,208 repairs and upgrades to his foreign-made luxury automobile? Surely this has nothing to do with “wowing” potential partners.
Not so fast. The job starts the minute he drives into a parking lot. Nothing screams success like a fancy set of wheels. Maybe he should have 7 luxury automobiles, one for each day of the week.
Dave, if it took only $550 to FOIP the information by Rusnell. A few thousand more and you can FOIP ALL of the expenses approved by the former Health CEO. Perhaps this can prompt a real PUBLIC inquiry and forensic financial audit. One wonders what the real cost is of having a Royal Health Bureaucratic Oligarchy. I wonder how much money has been chewed up and eaten by others…..JUST sayin’………..???
Everyone is piling on this Merali Guy, and justifiably so. But do any of you believe that he was the ONLY ONE? Let’s not kid ourselves. Red Fraud has some real digging into, that she owes the voters and taxpayers. Public confidence can be restored by making an example of one or two people. There has to be some real, punishment of somekind meted out. A fluffly and weak whitewash is worthless.
When massive outsourcing sent many Canadian and American jobs abroad to cheaper labour markets, no corporation started shopping for cheaper executives. This via Paul Krugman’s blog:
Brad DeLong points us to an amazing Fortune reprint: a portrait of American executives in 1955, back when inequality was much lower and tax rates at the top much higher than they are today. The business leaders of the time led straitened lives by historical standards — they were substantially poorer than the previous generation of executives:.
Read more at http://goo.gl/8PaSL
No wonder ministers and deputy ministers hire well compensated executives (and so on down) to insulate them from the front line workers. The value of your executive reflects on you. In the corporate world the value of the twelve year old sowing your cheap shoes, well, there’s a dozen degrees of separation.
re: merali affair…well at least with bev oda her expense claim showed details to find the $16 glass of orange juice…with merali there is only a line item for the total hotel charge (how many people & how much wine, only he knows)…nice work if you can get it…