Alberta Health Services is working out the terms of a severance package potentially worth six figures for Allaudin Merali after he exited the provincial health authority earlier this week.
His departure came amid revelations he rang in more than $345,000 in expense claims during his tenure as the former Capital Health Region’s chief financial officer between 2005 and 2008.
An AHS spokesman couldn’t say Friday when Merali’s severance will be finalized and whether his superboard employment contract will be made public.
But Health Minister Fred Horne said Thursday he plans to examine overall hiring practices and expense policies in the health-care system.
“This is fundamental to public confidence in our health-care system. We’ll take the time that is necessary to get answers,” Horne said.
In 2008, after the Edmonton health region was amalgamated into the AHS, Merali received a $1-million severance, along with a “supplemental executive retirement plan” worth $13,303 monthly for 10 years.
The type of retirement payout, which involves money that comes on top of pension plans, has since been replaced under AHS.
Merali’s employment with the provincial medical board, after he already collected a hefty severance and retirement money from the Edmonton health region, is shocking, said Ted Woynillowicz, of Friends of Medicare.
“These people get these huge severances and pensions. . . . I think taxpayers should be outraged.”
No one from AHS was made available to comment Friday.
Earlier this week, AHS acting chief executive Chris Mazurkewich said the standard contract for executives is a one-year payout.
Mazurkewich wouldn’t say whether Merali resigned or was asked to leave, noting the employment contract was “terminated, as mutually agreed upon.”
Merali, who started the job roughly three months ago, earned an annual base salary of $425,000.
A labour law expert said Friday that it’s unlikely AHS will be able to avoid paying a significant severance amount, particularly since the spending issues revolved around a previous job rather than Merali’s superboard position.
If it’s politically expedient to part ways with the chief financial officer “to make them look like they’re being hard-nosed fiscal managers, if they want to look like that, they’re going to have to pay for it,” said James Muir, a University of Alberta faculty of law professor.
The fact Merali is in line for severance indicates the province must do a better job crafting public service contacts, said Wildrose Leader Danielle Smith.
And taxpayers shouldn’t be on the hook for more cash payouts to a senior public executive who departed his job amid controversy, Smith said.
“To have the exorbitant expense accounts, on top of severances, on top of pensions — when on Earth does it end,” she said.
Merali previously made headlines over expense claims filed when he was a consultant for Ontario’s eHealth project, after it was revealed he charged numerous expenses on top of his $2,750 daily rate of pay and $75 per diem.
This spring, Alberta offered Merali a job as chief controller in the Department of Finance and Treasury Board, which involves overseeing the work of controllers in all government departments.
Finance Minister Doug Horner said Thursday the province was aware of the Ontario eHealth controversy surrounding Merali when it offered him the job, and that exorbitant expenses aren’t allowed under Alberta policy.
Meanwhile, the expenses Merali incurred during his three months as AHS chief financial officer are now under review by the superboard, which plans to begin publicly posting records of paid expenses for its chief executive and senior vice-presidents.
Original Article
Source: calgary herald
Author: Jamie Komarnicki
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