MEMBERSHIP MONEY IS THE TARGET: REPORT

TV Station Says Police Are Looking Into Funding For 37,000 New Liberals

The police investigation that led to a raid of the B.C. legislature last
month focuses on the origins of money that was used to pay for as many as
37,000 memberships in the federal Liberal Party, an Ottawa TV station said
yesterday.

CJOH said police are also investigating the free travel of more than 80
Young Liberals to last November's leadership convention in Toronto, where
Paul Martin became leader of the party.

Also under scrutiny, the station said, are allegations that several workers
in the B.C. legislature were offered up to $6,000 each in return for their
help boosting party memberships.

Warrants to justify the search have been sealed. Police have refused to be
specific about their investigation, but have said the warrants executed at
the legislature did not target elected officials.

RCMP spokesman Sgt. John Ward would not comment on the CJOH report.

Ward said earlier that no political parties are under investigation as part
of a 20-month police probe that began in the spring of 2002.

That probe involves allegations that organized crime was involved in the
sale of B.C.-grown marijuana in the U.S. in exchange for cocaine that was
then sold in Canada.

Bill Cunningham, president of the B.C. wing of the federal Liberal Party,
sharply dismissed the CJOH report.

"It's complete bull----," he said.

"It's completely untrue."

Cunningham said the CJOH's claim involving Young Liberals appears to refer
to a plane chartered in November to take Liberals to the Toronto convention.

He said the flight was financed through donations from three individuals
and fundraising by Young Liberals. All finances around the flight have been
documented and are above board, he said.

Cunningham said federal Liberal ranks in B.C. were about 4,000 in February
2002, but rose to 37,000 as of June 2003 when further growth was cut off in
advance of the leadership convention.

He said the party does not accept anonymous donations. "Every cent into the
party is disclosed, and has to be, by law," he said.

Thomas Marshall, a Liberal delegate from Vancouver who attended the
November convention, said he paid for his own trip.

"We did pay for our own trips," he said. "I paid $450, [which included]
airfare and accommodation."

He said that some of the trip was subsidized by the federal Liberal Party.

"The Liberal Party of Canada does provide a travel subsidy which helps
cover most of the airfare," he said.

Marshall, who is also the president of the provincial B.C. Young Liberals,
said he went to the convention with about 10 friends as a federal delegate,
not as the president of the B.C. Young Liberals.

"Everyone that came as a friend of mine paid for their trip," he said.

Growth in party ranks has been linked to the rise of Paul Martin, who has
made it a priority to improve Liberal fortunes in B.C. in the coming
federal election. The party now holds six of 34 seats in the province.

But the RCMP probe has touched on leading Liberals. Mark Marissen, the head
of the Liberal election campaign in B.C., was contacted by police, who said
he may have been the innocent recipient of documents relevant to their
probe. Marissen provided the documents.

Police also executed warrants on the offices of Erik Bornman, a lobbyist
and member of the executive of the federal Liberal Party in B.C., as well
as Bruce Clark, chief fundraiser in B.C. for Martin during his leadership
campaign, but no wrongdoing has been alleged against either man.