LEGISLATURE CASE BECOMES A SWIRL OF ACCUSATIONS

Defence Lawyers in B.C. Say Their Clients Will Bear Brunt Of
Incomplete Disclosure

VANCOUVER -- The defence in the fraud and bribery trial connected
with the sensational raid on the B.C. Legislature more than three
years ago is demanding the Crown turn over potentially hundreds of
more documents.

In a notice of application filed yesterday in the B.C. Supreme Court,
lawyers for former political aides Dave Basi, Aneal Basi and Bob Virk
argue that the disclosure process has been badly flawed and crucial
documents still have not been made available before the case goes to
full trial.

They also say that the special prosecutor in the case, William
Beradino, has not provided an appropriate explanation for documents
that appear to be missing. As well, the defence says it only recently
received crucial police notes and witness statements, all of which
leaves a cloud hanging over the disclosure process.

The court document also alleges that former finance minister Gary
Collins was actively being probed by the RCMP despite the Mounties'
public statements at the time that no politicians were being
investigated in connection with the case, which involves the
government sale of BC Rail.

Beyond that, the document claims that Mr. Collins authorized a plan
to give an unsuccessful bidder for the BC Rail line a "consolation
prize" for agreeing to stay in the bidding process to help drive up
the price for the government-owned line.

That unsuccessful bidder was Omnitrax Inc., a U.S. firm that was a
client of the Victoria-based lobbying firm Pilothouse. The Crown
alleges that one of the firm's principals, Eric Bornmann, bribed and
offered other inducements to Dave Basi and Mr. Virk in exchange for
confidential information and their assistance related to the BC Rail deal.

It's alleged that the money Mr. Bornmann is said to have paid Mr.
Basi was laundered through his cousin, Aneal, who was also a
provincial aide at the time.

Mr. Bornmann has not been charged in connection with the case and is
expected to be the Crown's star witness against the accused.

The document filed yesterday contains other potentially controversial material.

Among the documents that the defence alleges are missing is one from
Mr. Bornmann related to another potential Crown witness, Bruce Clark.

"The statements and allegations made by Mr. Bornmann against Mr.
Clark involves an allegation that Mr. Clark bribed Mr. Basi," the
document states. "To date, the defence has not received the entirety
of Mr. Bornmann's statements against Mr. Clark although they relate
directly to this investigation."

Mr. Clark is the brother of former B.C. deputy premier Christy Clark,
and brother-in-law of Mark Marissen, the national campaign director
for the federal Liberal Party. Bruce Clark is also a prominent
federal Liberal fundraiser and was the B.C. fundraiser for Stephane
Dion, whose successful leadership campaign was directed by Mr. Marissen.

"Someone made some very serious allegations about me," Mr. Clark said
when reached for comment. "The police investigated the allegations.
They found nothing because the allegations were completely false."

All of the information and material collected by the RCMP in the
course of its investigation resides in a building in Victoria. The
room in which it is being stored is known as the Project Room.

During the course of its review of the material in that room, the
defence alleges that a file known as Tip 37-56, which contained tips
the RCMP received about the federal Liberal Party, was largely
missing. The defence has yet to get an explanation.

The document also states that it is clear the RCMP extensively
investigated Dave Basi in respect to his dealings and relationships
with the provincial Liberal Party.

"There appears to be an enormous and seemingly unlimited number of
materials in the possession of the RCMP that have not been disclosed
to the defence regarding Mr. Basi and his connections and dealings in
this regard."

The RCMP raided the legislature on Dec. 28, 2003, to seize files
belonging to Mr. Basi and Mr. Virk, who was a ministerial assistant
to the provincial transportation minister. A year later, the two and
Aneal Basi were charged with a number of fraud and breach-of-trust
offences connected to the government sale of BC Rail and the
cancellation of the planned government sale of the Roberts Bank port
subdivision rail line.

Dave Basi was then ministerial assistant to Mr. Collins, who was
responsible at the time for the BC Rail sale. The number of bidders
for the rail line began to dwindle when it became apparent that CN
Rail was likely to be awarded the prized government asset.

It's believed Omnitrax was planning to drop out of the bid process
for the same reason, but was persuaded to stay by Mr. Basi, who
believed it was crucial to keep other bidders involved to help
ratchet up the price of the asset.

According to the court document filed yesterday, Omnitrax was seeking
a consolation prize for staying in the bidding, and that was to be
the BC Port subdivision line at Roberts Bank.

"Critically," the court document states, "on Nov. 17, 2003, the RCMP
learned through an intercepted call between Mr. Basi and Mr. Virk
that Mr. Basi told Mr. Virk that Minister Collins had approved the
consolation prize."

A dinner that Mr. Collins had with Omnitrax executives Pat Broe and
Dwight Johnson on Dec. 12, 2003, allegedly to discuss the so-called
consolation prize, was secretly videotaped by the RCMP, who also had
agents inside the restaurant doing undercover surveillance.

"The defence takes the position that at no time did Mr. Basi or Mr.
Virk act in a fraudulent, deceitful or criminal manner," the defence
application states, "but rather acted at all times under the
direction of their superiors in the highly political circumstance of
their offices."

The judge in the case is expected to hear the application on April 2.