Allauddin merali biography definition


Former CFO will not receive severance pay: AHS board

 The former CFO of Alberta Health Services will not receive a severance after his contract was terminated when details of his expenses were exposed.

Allaudin Merali was hired in May as executive vice-president and chief financial officer.

Earlier this year, AHS was asked for records relating to Merali’s expense claims, from January 2005 to August 2008 when he worked with the former Capital Health Region in Edmonton.

The 146 claims totaled $346,208 for things like dinners, attending conferences and membership dues.

Merali also expensed costs relating to his Mercedes Benz, including maintenance, insurance, registration and car washes. He also billed the health region for $540 in phone calls while on a cruise ship and thousands of dollars in meals, airline tickets and hotel rooms. He also expensed grocery bills and parking meter costs.

Story continues below advertisement

On Monday, the AHS board announced Merali will not receive additional compensation, and that an independent forensic audit of his expense accounts has been ordered.

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

“An arm’s-length audit is essential,” said AHS President and CEO, Dr. Chris Eagle.

“Although we cannot speak to concerns prior to the creation of AHS, Albertans want and expect a thorough review and complete accounting.”

Health Minister Fred Horne issued a statement Monday.

“Last week, information was released revealing unacceptable expense claims paid to Alberta Health Services senior executive Allaudin Merali when he was Chief Financial Officer of the former Capital Health Authority in 2005-08.

“Like all Albertans, I was outraged to learn of these events. But unlike all Albertans, I am accountable to them for the operation of our health care system.”

Horne went on to say he’s taking steps to find out how and why this happened, and how to prevent it from happening again. He says:

1) I have been advised of the Board of Alberta Health Service’s decision that no severance will be paid to Mr. Merali.
2) I have ordered AHS to retain an independent audit firm to conduct a forensic audit of the expenses in question to determine if, in fact, those expenses were in compliance with policies and procedures of Capital Health.
3) I have further instructed that AHS give that audit firm the authority to expand its review should other questionable practices and expenses be uncovered.
4) Finally, In addition to these actions, I have instructed that the Auditor General’s report with respect to AHS’ expense and travel policies which was requested by the organization be delivered directly to me. This way, I will be able to ensure the implementation of policies that are as stringent as possible and in line with best practices of other public sector organizations.

Trending Now

Story continues below advertisement

“Additionally, my colleague, Don Scott, Associate Minister of Accountability, Transparency and Transformation, will be announcing a further review of hiring, selection and contracting priorities at AHS, in conjunction with a government-wide initiative,” Horne added.

Merali previously worked for eHealth Ontario, and concerns were also raised there about expenses he recorded while under contract. AHS said it was aware of that when Merali was hired, but was not aware of his spending with the Capital Health Region.

AHS now plans to publicly post the expenses of the CEO and other senior officials.