BC Legislature Raids
Encyclopedia
The BC Legislature Raids resulted from search warrants executed on the Legislature of British Columbia
, Canada
, in 2003. The legal proceedings were stopped just before government officials were to testify. The BC Legislature Raids has become a collective term for the associated corruption proceedings and ensuant controversies.
, have repeatedly refused comment on the grounds that the matter is before the courts.
Justice Elizabeth Bennett
began hearings in BC Supreme Court
in April 2007. The claims made in disclosure hearings sparked speculation as political observers and online commentators attempted to determine why these searches took place. Comments made on the case by BC Attorney-General Wally Oppal
and questions as to the legality of warrants obtained by the Royal Canadian Mounted Police
(RCMP) have raised concerns of a mistrial which might have sealed evidence in the case.
As proceedings developed, the proceedings have brought to light questions concerning the propriety of the sale of BC Rail to CN Rail and the conduct of various government officials and consultants as well as the role of various members of the government, including Premier Gordon Campbell and his advisers. The preliminary hearings into eventual criminal court proceedings were kept sealed from the public until opened up in the public's interest, and by requests from defence council, in the fall of 2008 by the presiding justice, Elizabeth Bennett
, who struck down the court ban in the grounds of the importance of an open court in regard to the importance of the case to the public interest, contrary to the objections of the government-appointed Special Prosecutor.
Successive revelations of further documents revealed a complex web of information relating to various parties which has still not been fully analyzed and promoted much speculation as to still-further ramifications of the raids.
smuggling ring between British Columbia
and Ontario
run by his cousin Jasmohan Singh Bains.
During the police investigation of Basi's activities investigators became interested in Basi's dealings as Ministerial Assistant to then Finance Minister Gary Farrell-Collins
. A second investigation was launched that had no connection to drug related activities but rather to the sale of benefits
in regard to the tendering process for the sale of BC Rail..
On December 28, 2003, a series of search warrants was executed at various locations throughout the Lower Mainland
and in Victoria
. There were four separate applications by the RCMP in 2004 to obtain warrants, and according to the CBC
these were executed at nine separate premises including the Parliament Buildings
in Victoria
. As a result, allegations of bribery were made (including money and the offer of potential employment in return for confidential government information).
The sale of BC Rail involved a tax indemnity. If CN is not refunded $
415 million from the Federal Government, the Province will return this amount. Reduces the sale price of BC Rail from $1.05 billion to under $500 million.http://www.canada.com/vancouversun/news/westcoastnews/story.html?id=106ef17b-3f69-4946-8132-4ce69f85d065&k=60220&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+canwest%2FF262+(Vancouver+Sun+-+WestCoast+News) The BC Rail tax indemnity was taken off the Public Accounts in January 2005, before the May 2005 election, when it was reclasified a contingent liability.
Further charges were laid against two Victoria area developers.
.
or the Paul Martin
leadership campaign.
Search warrants were executed at several locations in addition to the BC Legislature. The Vancouver home office of Erik Bornmann, the Vancouver home of Bruce Clark (brother of Christy Clark, Premier of British Columbia
), and the offices of Pilothouse public affairs in Victoria in December 2003. It is been reported that Erik Bornmann, Brian Kieran and Jamie Elmhirst will testify for the Crown. The RCMP also attended Ms. Clark's home that she shared with her ex-husband Mark Marissen.
The RCMP made it very clear that no elected officials were implicated in their investigation, and also provided a letter to Marissen (Paul Martin's BC Campaign Chair) confirming that he was also not implicated in any way and that they came to his house without a search warrant to seek his help because they thought he might be the "innocent recipient" of emails related to Virk's and Basi's resumes, because it was alleged that they were seeking job recommendations for federal political employment in Ottawa
. Basi was an active volunteer for the Paul Martin campaign in British Columbia, who recruited many members of the Indo-Canadian community to the Liberal Party to vote in the leadership process. This has led to rampant speculation and innuendo as government critics attempt to link Basi's activities to federal and provincial politicians and operatives, and spread "guilt by association". Part of this speculation is fuelled by comments made to the media at the time of the raids by the officer in charge, that organized crime and corruption were present in "the highest levels of the government".
Those charged include:
and the Finance Minister. Twice the warrants were rejected on grounds of privilege, with the third warrant issued without naming the premises, which were the Legislature Buildings.
The documents produced attention immediately, first to what appeared to be B.C. Liberal Party
fundraising activities originating from the Finance Minister's office, then to the B.C. Liberal government's strategy for dominating the media discourse and neutralizing question period.
On March 6, 2009, after raising these two stories the B.C. New Democrat caucus released the documents to the public through their website.
that the co-chairman for the BC Liberal party during the 2001 and 2005 elections, earned funds from the government corporation BC Rail on how to sell BC Rail.
Shortly after the B.C. New Democrat Caucus won access to the 8000 pages of B.C. rail documents, their researchers uncovered a link between long-time B.C. Liberal Party
former chairman Patrick Kinsella and B.C. Rail while looking through public documents available at the legislative library. The documents showed that between 2002 and 2004, B.C. Rail paid $297,000 to the group of companies owned by Kinsella.
The discovered documents were first aired in question period on Tuesday, March 10, 2009. When questioned by New Democrat justice critic, Leonard Krog
, about what Kinsella was paid by B.C. Rail to do, the Attorney General, Wally Oppal
, claimed that "the issue relating to B.C. Rail is before the Supreme Court of British Columbia, and we will not comment on the matter."
Kinsella's company, the Progressive Group, issued a statement claiming that Kinsella "was engaged by BC Rail to assist in understanding and interpreting the Core Review Process as to its potential impact on the Corporation," while on B.C. Rail's payroll.
Questioned outside of the legislature Oppal said that he had no idea if Kinsella's activities were connected to the B.C. Rail trial.
Soon after, a defence lawyer involved in the trial alleged that Kinsella was working for both CN Rail and BC Rail in the time before the $1-billion sale of BC Rail to CN was finalized.
Kinsella wrote the B.C. Liberal Party election platform for the 2003 and 2005 elections. Kinsella's involvement in the political corruption trial has led observers to draw a link between the B.C. rail scandal and Gordon Campbell.
According to an email cited by defense lawyer Kevin McCullough, Kinsella may have interceded with Premier Gordon Campbell's chief of staff to keep the sale of B.C. rail to C.N. from "going off the tracks."
Kinsella is alleged to have been involved in entering the $505 million dollar BC Rail tax indemnity (refund) on the books at 255 million. The sale of BC Rail included a $505 million BC Rail tax indemnity on top of $750 million cash and $250 million in direct tax credits. Under the terms of the indemnity, If CN is not refunded the amount of the indemnity from the Federal Government, the Province will return this amount. This reduces the sale price of BC Rail from $1.05 billion to around $500 million. The BC Rail tax indemnity was taken off the Public Accounts in January 2005, before the May 2005 election, when it was reclassified a contingent liability. The BC Rail sale Annual Report was defective and did not cite the indemnity, and recorded these tax credits at zero bookvalue.
Canadian media have expressed frustration at the time it has taken to get this case to trial.
A publication ban by the presiding judge put most of the B.C. rail trial - from its beginning to July 6, 2010, when the court rose for the summer, out of reach of the media and out of the public eye.
After the plea, the special prosecutor accepted the bribe guilty pleas from some Sooke developers for paying a bribe to Basi because they saw him as an influential figure in the government worth cultivating. Basi openned up a bank account and 50,000 was forwarded to him on Aug. 26, 2003. Quote, "The company wanted to enter a guilty plea a year ago but could not do so, since the Basi-Virk trial on charges of political corruption had not started", said the special prosecutor.
British Columbia Parliament Buildings
The British Columbia Parliament Buildings are located in Victoria, British Columbia, Canada and are home to the Legislative Assembly of British Columbia....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, in 2003. The legal proceedings were stopped just before government officials were to testify. The BC Legislature Raids has become a collective term for the associated corruption proceedings and ensuant controversies.
repeatedly refused comment
The Premier and other cabinet officials, including former Attorney-General Wally OppalWally Oppal
Wallace Oppal, Q.C. is a Canadian lawyer, former judge and provincial politician, who is currently serving as the Chancellor of the Thompson Rivers University...
, have repeatedly refused comment on the grounds that the matter is before the courts.
Justice Elizabeth Bennett
Elizabeth Bennett (judge)
Justice Elizabeth Bennett is judge of the British Columbia Court of Appeal. During her term on the Supreme Court of British Columbia, she presided over two notable corruption trials.-Early life and career:...
began hearings in BC Supreme Court
Supreme Court of British Columbia
The Supreme Court of British Columbia is the superior trial court for the province of British Columbia. The BCSC hears civil and criminal law cases as well as appeals from the Provincial Court of British Columbia. Including supernumerary judges, there are presently 108 judges...
in April 2007. The claims made in disclosure hearings sparked speculation as political observers and online commentators attempted to determine why these searches took place. Comments made on the case by BC Attorney-General Wally Oppal
Wally Oppal
Wallace Oppal, Q.C. is a Canadian lawyer, former judge and provincial politician, who is currently serving as the Chancellor of the Thompson Rivers University...
and questions as to the legality of warrants obtained by the Royal Canadian Mounted Police
Royal Canadian Mounted Police
The Royal Canadian Mounted Police , literally ‘Royal Gendarmerie of Canada’; colloquially known as The Mounties, and internally as ‘The Force’) is the national police force of Canada, and one of the most recognized of its kind in the world. It is unique in the world as a national, federal,...
(RCMP) have raised concerns of a mistrial which might have sealed evidence in the case.
As proceedings developed, the proceedings have brought to light questions concerning the propriety of the sale of BC Rail to CN Rail and the conduct of various government officials and consultants as well as the role of various members of the government, including Premier Gordon Campbell and his advisers. The preliminary hearings into eventual criminal court proceedings were kept sealed from the public until opened up in the public's interest, and by requests from defence council, in the fall of 2008 by the presiding justice, Elizabeth Bennett
Elizabeth Bennett (judge)
Justice Elizabeth Bennett is judge of the British Columbia Court of Appeal. During her term on the Supreme Court of British Columbia, she presided over two notable corruption trials.-Early life and career:...
, who struck down the court ban in the grounds of the importance of an open court in regard to the importance of the case to the public interest, contrary to the objections of the government-appointed Special Prosecutor.
Successive revelations of further documents revealed a complex web of information relating to various parties which has still not been fully analyzed and promoted much speculation as to still-further ramifications of the raids.
Drug sting "Everywhichway" leads to government aides
According to the RCMP, the Raids arose from information uncovered during a drug sting. In 2003, the RCMP were monitoring Dave Basi's conversations on his home, government, and cellular phones, as well as his e-mails. At that time the police were focused on breaking up a marijuana and cocaineCocaine
Cocaine is a crystalline tropane alkaloid that is obtained from the leaves of the coca plant. The name comes from "coca" in addition to the alkaloid suffix -ine, forming cocaine. It is a stimulant of the central nervous system, an appetite suppressant, and a topical anesthetic...
smuggling ring between British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
and Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
run by his cousin Jasmohan Singh Bains.
During the police investigation of Basi's activities investigators became interested in Basi's dealings as Ministerial Assistant to then Finance Minister Gary Farrell-Collins
Gary Farrell-Collins
Gary Collins, formerly referred to as Gary Farrell-Collins prior to 2001, is a former Canadian politician, who served as a BC Liberal Member of the Legislative Assembly of British Columbia from 1991 to 2004, representing the riding of Vancouver-Fairview...
. A second investigation was launched that had no connection to drug related activities but rather to the sale of benefits
Influence peddling
Influence peddling is the illegal practice of using one's influence in government or connections with persons in authority to obtain favors or preferential treatment for another, usually in return for payment. Also called traffic of influence or trading in influence ...
in regard to the tendering process for the sale of BC Rail..
On December 28, 2003, a series of search warrants was executed at various locations throughout the Lower Mainland
Lower Mainland
The Lower Mainland is a name commonly applied to the region surrounding and including Vancouver, British Columbia, Canada. As of 2007, 2,524,113 people live in the region; sixteen of the province's thirty most populous municipalities are located there.While the term Lower Mainland has been...
and in Victoria
Victoria, British Columbia
Victoria is the capital city of British Columbia, Canada and is located on the southern tip of Vancouver Island off Canada's Pacific coast. The city has a population of about 78,000 within the metropolitan area of Greater Victoria, which has a population of 360,063, the 15th most populous Canadian...
. There were four separate applications by the RCMP in 2004 to obtain warrants, and according to the CBC
Canadian Broadcasting Corporation
The Canadian Broadcasting Corporation, commonly known as CBC and officially as CBC/Radio-Canada, is a Canadian crown corporation that serves as the national public radio and television broadcaster...
these were executed at nine separate premises including the Parliament Buildings
British Columbia Parliament Buildings
The British Columbia Parliament Buildings are located in Victoria, British Columbia, Canada and are home to the Legislative Assembly of British Columbia....
in Victoria
Victoria, British Columbia
Victoria is the capital city of British Columbia, Canada and is located on the southern tip of Vancouver Island off Canada's Pacific coast. The city has a population of about 78,000 within the metropolitan area of Greater Victoria, which has a population of 360,063, the 15th most populous Canadian...
. As a result, allegations of bribery were made (including money and the offer of potential employment in return for confidential government information).
The sale of BC Rail involved a tax indemnity. If CN is not refunded $
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
415 million from the Federal Government, the Province will return this amount. Reduces the sale price of BC Rail from $1.05 billion to under $500 million.http://www.canada.com/vancouversun/news/westcoastnews/story.html?id=106ef17b-3f69-4946-8132-4ce69f85d065&k=60220&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+canwest%2FF262+(Vancouver+Sun+-+WestCoast+News) The BC Rail tax indemnity was taken off the Public Accounts in January 2005, before the May 2005 election, when it was reclasified a contingent liability.
BC Rail link
On April 3, 2006, a Justice of the British Columbia Supreme Court ordered the further release of various documents used by police to obtain the search warrants served on individuals linked to the Raids.Further charges were laid against two Victoria area developers.
Agricultural Land Commission connection
Basi has also been charged for accepting $50,000 in connection with the Agricultural Land CommissionAgricultural Land Reserve
The Agricultural Land Reserve is a collection of land in the Canadian province of British Columbia in which agriculture is recognized as the priority use. Farming is encouraged and non-agricultural uses are controlled. In total, the ALR covers approximately and includes private and public lands...
.
Liberal "insiders"
Several of the people cited by online commentators or certain reporters in the story surrounding the raid are politically active people who had come into contact with Basi. Examples include provincial ministers, staff or officials in the Liberal Party of CanadaLiberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...
or the Paul Martin
Paul Martin
Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....
leadership campaign.
Search warrants were executed at several locations in addition to the BC Legislature. The Vancouver home office of Erik Bornmann, the Vancouver home of Bruce Clark (brother of Christy Clark, Premier of British Columbia
Premier of British Columbia
The Premier of British Columbia is the first minister, head of government, and de facto chief executive for the Canadian province of British Columbia. Until the early 1970s the title Prime Minister of British Columbia was often used...
), and the offices of Pilothouse public affairs in Victoria in December 2003. It is been reported that Erik Bornmann, Brian Kieran and Jamie Elmhirst will testify for the Crown. The RCMP also attended Ms. Clark's home that she shared with her ex-husband Mark Marissen.
The RCMP made it very clear that no elected officials were implicated in their investigation, and also provided a letter to Marissen (Paul Martin's BC Campaign Chair) confirming that he was also not implicated in any way and that they came to his house without a search warrant to seek his help because they thought he might be the "innocent recipient" of emails related to Virk's and Basi's resumes, because it was alleged that they were seeking job recommendations for federal political employment in Ottawa
Ottawa
Ottawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
. Basi was an active volunteer for the Paul Martin campaign in British Columbia, who recruited many members of the Indo-Canadian community to the Liberal Party to vote in the leadership process. This has led to rampant speculation and innuendo as government critics attempt to link Basi's activities to federal and provincial politicians and operatives, and spread "guilt by association". Part of this speculation is fuelled by comments made to the media at the time of the raids by the officer in charge, that organized crime and corruption were present in "the highest levels of the government".
Charges laid
In December 2004 three men were charged in connection with this investigation and in 2006 two more men were charged.Those charged include:
- David Basi
- Robert Virk
- Aneal Basi
- Tony Young
- James Duncan
Legality of warrants
Complications in the case included controversy as to whether the police may have misled a judge in the course of obtaining warrants for the investigation which involved eavesdropping on conversations between the PremierPremier of British Columbia
The Premier of British Columbia is the first minister, head of government, and de facto chief executive for the Canadian province of British Columbia. Until the early 1970s the title Prime Minister of British Columbia was often used...
and the Finance Minister. Twice the warrants were rejected on grounds of privilege, with the third warrant issued without naming the premises, which were the Legislature Buildings.
Documents released under the Freedom of Information Act
On February 25, 2009, Judge Elizabeth Bennett released 8000 pages of documents relating to the legislature raids to the New Democrat Official Opposition.The documents produced attention immediately, first to what appeared to be B.C. Liberal Party
British Columbia Liberal Party
The British Columbia Liberal Party is the governing political party in British Columbia, Canada. First elected for government in 1916, the party went into decline after 1952, with its rump caucus merging with the Social Credit Party for the 1975 election...
fundraising activities originating from the Finance Minister's office, then to the B.C. Liberal government's strategy for dominating the media discourse and neutralizing question period.
On March 6, 2009, after raising these two stories the B.C. New Democrat caucus released the documents to the public through their website.
The Kinsella Connection
It was not known to the electorate until after the May 2005 BC Provincial ElectionBritish Columbia general election, 2005
The 38th British Columbia general election was held on May 17, 2005, to elect members of the Legislative Assembly of the Province of British Columbia , Canada. The BC Liberal Party formed the government of the province prior to this general election under the leadership of Premier Gordon Campbell...
that the co-chairman for the BC Liberal party during the 2001 and 2005 elections, earned funds from the government corporation BC Rail on how to sell BC Rail.
Shortly after the B.C. New Democrat Caucus won access to the 8000 pages of B.C. rail documents, their researchers uncovered a link between long-time B.C. Liberal Party
British Columbia Liberal Party
The British Columbia Liberal Party is the governing political party in British Columbia, Canada. First elected for government in 1916, the party went into decline after 1952, with its rump caucus merging with the Social Credit Party for the 1975 election...
former chairman Patrick Kinsella and B.C. Rail while looking through public documents available at the legislative library. The documents showed that between 2002 and 2004, B.C. Rail paid $297,000 to the group of companies owned by Kinsella.
The discovered documents were first aired in question period on Tuesday, March 10, 2009. When questioned by New Democrat justice critic, Leonard Krog
Leonard Krog
Leonard Krog is a Canadian politician and lawyer in British Columbia. He was first elected in the 1991 general election representing the riding of Parksville-Qualicum in the Legislative Assembly of British Columbia and served as a backbencher in the Mike Harcourt NDP government. He ran for...
, about what Kinsella was paid by B.C. Rail to do, the Attorney General, Wally Oppal
Wally Oppal
Wallace Oppal, Q.C. is a Canadian lawyer, former judge and provincial politician, who is currently serving as the Chancellor of the Thompson Rivers University...
, claimed that "the issue relating to B.C. Rail is before the Supreme Court of British Columbia, and we will not comment on the matter."
Kinsella's company, the Progressive Group, issued a statement claiming that Kinsella "was engaged by BC Rail to assist in understanding and interpreting the Core Review Process as to its potential impact on the Corporation," while on B.C. Rail's payroll.
Questioned outside of the legislature Oppal said that he had no idea if Kinsella's activities were connected to the B.C. Rail trial.
Soon after, a defence lawyer involved in the trial alleged that Kinsella was working for both CN Rail and BC Rail in the time before the $1-billion sale of BC Rail to CN was finalized.
Kinsella wrote the B.C. Liberal Party election platform for the 2003 and 2005 elections. Kinsella's involvement in the political corruption trial has led observers to draw a link between the B.C. rail scandal and Gordon Campbell.
According to an email cited by defense lawyer Kevin McCullough, Kinsella may have interceded with Premier Gordon Campbell's chief of staff to keep the sale of B.C. rail to C.N. from "going off the tracks."
Kinsella is alleged to have been involved in entering the $505 million dollar BC Rail tax indemnity (refund) on the books at 255 million. The sale of BC Rail included a $505 million BC Rail tax indemnity on top of $750 million cash and $250 million in direct tax credits. Under the terms of the indemnity, If CN is not refunded the amount of the indemnity from the Federal Government, the Province will return this amount. This reduces the sale price of BC Rail from $1.05 billion to around $500 million. The BC Rail tax indemnity was taken off the Public Accounts in January 2005, before the May 2005 election, when it was reclassified a contingent liability. The BC Rail sale Annual Report was defective and did not cite the indemnity, and recorded these tax credits at zero bookvalue.
The BC Rail Corruption Trial
The BC Rail Corruption Trial, properly known as Her Majesty the Queen v. Basi, Virk Basi and commonly known as the Basi-Virk Trial, started on May 17, 2010. The trial was originally scheduled by B.C. Supreme Court officials to last around six weeks.Canadian media have expressed frustration at the time it has taken to get this case to trial.
A publication ban by the presiding judge put most of the B.C. rail trial - from its beginning to July 6, 2010, when the court rose for the summer, out of reach of the media and out of the public eye.
The first witness: Chief of Staff Martyn Brown
Premier Gordon Campbell's chief of staff, Martyn Brown, was the first witness to appear before the jury in the B.C. Rail Trail.End of Trial
October, 2010 - Defendants Dave Basi and Bob Virk agreed to change their plea to guilty on a reduced number of charges, after the taxpayer agreed to pay all their legal bills. There is a publication ban on parts of the sentencing order.After the plea, the special prosecutor accepted the bribe guilty pleas from some Sooke developers for paying a bribe to Basi because they saw him as an influential figure in the government worth cultivating. Basi openned up a bank account and 50,000 was forwarded to him on Aug. 26, 2003. Quote, "The company wanted to enter a guilty plea a year ago but could not do so, since the Basi-Virk trial on charges of political corruption had not started", said the special prosecutor.
External links
- BC Raids - CBC
- "Who's Who in the BC Legislature Raids", Canadian Broadcasting Corporation (January 14, 2004)
- omniTRAX Corporate Website
- "Backgrounder on BC Rail Deal", Government of British Columbia (Sets out what is at stake)
- Railgate: A to Z, Bill Tieleman column in The Tyee, December 29, 2008
- Timeline of major reporting on Kinsella, Sean Holman, Public Eye Online
Blog/internet sites
- The Legislature Raids Blog (BC Mary)
- The Tyee, BC politics magazine (several articles and forums)
- Bill Tieleman's blog