The office of Alberta's auditor general has launched an investigation into a 2024 real estate transaction in Edmonton, where the provincial government purchased a property from a numbered company associated with healthcare entrepreneur Sam Mraiche, netting the company a substantial profit in a matter of weeks.
The Details of the Transaction
According to property records, a numbered company directed by Mraiche, the founder of medical supply firm MHCare, purchased a 26,000-square-foot commercial property at 14425 124 Avenue in west-central Edmonton in June 2024. The purchase price was $1.7 million. Merely 12 weeks later, in a deal finalized in 2024, the same company sold the land to the Government of Alberta for $2 million, resulting in a swift $300,000 profit.
Investigation and Government Secrecy
The auditor general's investigation into this transaction began in August of last year. While a report date has not been set, the probe adds to ongoing scrutiny of government procurement processes.
Further adding to the controversy, the provincial government has withheld details about the deal. Alberta Infrastructure has declined for nearly a year to release records requested by Postmedia under access to information laws. The matter is now in mediation with the office of the information and privacy commissioner.
Political Fallout and Company Defense
At the time the deal came to light in February of last year, then-Infrastructure Minister Peter Guthrie stated he was unaware of the transaction. He ordered an internal audit and referred the matter to the auditor general. Guthrie later resigned from cabinet, was expelled from the UCP caucus, and now leads the rebranded Progressive Tory Party.
The numbered company involved defended the deal in a written statement last year, calling it a "very traditional" real estate purchase. The company claimed it bought the land at slightly below market value and that it included a parking lease with Alberta Infrastructure. It also presented evidence of a $1.95 million bid from a private developer, suggesting the government's $2 million purchase price was in line with market value. The statement denied any communication with senior government officials to facilitate the sale.
This transaction occurs amidst broader allegations surrounding procurement involving Mraiche's companies, though the government, MHCare, and Mraiche have consistently denied any wrongdoing. Lawyers representing the company and Mraiche did not respond to requests for comment on the ongoing investigation.
