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Liberal lobbyist may be key player in Basi-Virk corruption case

Last Updated: Thursday, March 26, 2009 | 10:39 PM PT

CBC News

A hearing into possible fraud and money laundering during the sale of BC Rail disclosed "shocking and overwhelming" revelations Thursday about potential conflicts of interest at the heart of the provincial government, the Opposition says.

Two former ministerial aides are accused of fraud and money laundering in connection with the 2004 sale.

In a pretrial hearing Thursday in Vancouver, their defence lawyers argued that a lobbyist and top operative for B.C. Premier Gordon Campbell simultaneously had strong ties to BC Rail; the company that bought it, CN Railway; and the premier's office at the time of the sale.

A series of emails read out in court suggested Patrick Kinsella, a lobbyist and Campbell's campaign manager in the last two provincial elections, was asked to talk to a member of the premier's inner circle to help get the sale back on track when talks stalled in early 2004.

At the time, Kinsella was being paid nearly $300,000 to lobby for BC Rail — and was simultaneously a political advisor for CN.

The potential conflict of interest was the subject of heated NDP accusations during Thursday's question period in the B.C. legislature

"There is a stain on this premier's office," said Mike Farnworth, the Opposition house leader. "There's a stain on this government.…When will this government stand up and tell the truth about what happened with the backrooms of the premier's office regarding the sale of BC Rail?"

Leonard Krog, NDP critic for the attorney general, was at the court hearing and called the revelations "shocking and overwhelming."

"We have information now that indicates the premier, Patrick Kinsella and the head of CN were all in the room together," he said.

The Liberals refused to answer any of the NDP's questions, stating that there will be no comment while the matter is before the courts.

Thursday's revelations have potentially huge ramifications in the upcoming trial of former ministerial aides Dave Basi and Bob Virk. Each is charged with six counts of fraud and breach of trust after police raided the B.C. legislature and seized documents in 2003.

A lawyer representing Basi and Virk is hoping the latest information will show his clients were simply following instructions from their political superiors.

"Our agenda is not political," defence lawyer Michael Bolton said. "Our agenda is to give our clients a fair trial. But in this case, it leads down the same path: We've got to have documents of what Mr. Kinsella was doing."

CN Rail bought BC Rail for $1 billion in 2004.

Thursday's court hearing was to set a date for Basi and Virk's trial.

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Overall Results

Overall Election Results
Party Elected Leading Total
Updated: May. 13, 2009, 1:16 AM PDT
LIB 49 0 49
NDP 36 0 36
GRN 0 0 0
CON 0 0 0
OTH 0 0 0

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Question: Which electoral system should British Columbia use to elect members to the provinical Legislative Assembly?

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Electoral District Vote

BC-STV

First-Past-the-Post

51 RIDINGS

 
 
 

Ridings 7/85

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Updated: May. 13, 2009, 1:16 AM PDT

85/85 ridings reporting

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BC-STV

First-Past-the-Post

MAJORITY 60%

 
 
 

560,430 votes | 38.82%

883,259 votes | 61.18%

Updated: May. 13, 2009, 1:16 AM PDT

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