FEDERAL LIBERAL DECRIES RAID SPECULATION

Connections made between the recent police raid on the legislature and the
federal Liberal party are "irresponsible" and being drawn by people with
political axes to grind, says the organization's B.C. president.

Bill Cunningham insisted Monday that federal Liberal fundraising and
organizing activities in B.C. are being conducted above board and scoffed
at links being made between the high-profile police investigation and his
party.

"Throughout the course of this investigation, other than dangerous
speculation, there haven't been any linkages to federal political
activity," Cunningham said.

"And, in fact, the RCMP have been saying just the opposite -- that this
investigation does not involve political parties."

Police have yet to explain why legislature offices were raided on Dec. 28.

Meanwhile, the provincial government on Monday remained quiet about the
raid. Premier Gordon Campbell, who last spoke to reporters by phone on Dec.
29, is not expected to return to B.C. from his Maui vacation until mid-week
and isn't scheduled to be back at work until Monday.

Other ministers who have been touched by the story are also away on holiday.

Speculation that the police investigation is tied to activities of the
federal Liberals arose after the offices of David Basi, ministerial
assistant to B.C. Finance Minister Gary Collins, and Bob Virk, aide to
Transportation Minister Judith Reid, were searched Dec. 28.

Basi and Virk have served as organizers with the federal Liberal party,
including with Paul Martin's 2003 leadership campaign.

Speculation intensified after it was revealed that police had also served a
warrant on the home office of Bruce Clark and asked to see documents at the
home office of Mark Marissen, two men closely linked with the party and
Martin's campaign.

But Cunningham called those developments "at best coincidental."

He described speculation about Liberal party involvement as irresponsible
and fueled by "people who have a particular self or political interest in
trying to drag the federal Liberal party into this and to make linkages or
references that just simply don't exist."

The speculation isn't healthy for the party, however, Cunningham admitted.

"Any time you have this kind of rampant speculation that's not based in any
fact, I'm apprehensive about it," he said.

The federal Liberals have more than 40,000 members in B.C., up
significantly from the low of 4,000 members they had in February, 2002.
Cunningham said the membership bump was attributed to the Liberal
leadership race but the numbers are still on the rise.

All of the money from new memberships is accounted for and must be
declared, Cunningham said. Anyone who takes out a membership -- paying $5
per year -- must also sign a form declaring they are the source of the
money. And Cunningham said every dollar that is collected by the party,
whether for a membership or as a donation, has to be accounted for and
disclosed.

Cunningham said the party isn't trying to distance itself from Basi or Virk
in the wake of the investigation. But while Basi, in particular, is a
longtime party member both federally and provincially, has a lot of
connections, and understands the political system, his influence
province-wide has been overstated, said Cunningham.

Basi has been fired by provincial government while Virk has been suspended
with pay. Neither assistant has been replaced, but government
communications director Andy Orr said those moves will probably be made
during the next two or three weeks. The next legislative session begins
Feb. 10.

Basi has refused comment since the raid except to release a statement
through lawyer Chris Considine which said he has done nothing wrong and
expects to be completely exonerated.

Considine said Monday that earlier reports about his client's assets had
been misleading.

Those reports said Basi had donated $15,000 to his alma mater, the
University of Victoria, in back-to-back years. In fact, Basi's donation was
a single "planned gift" -- he took out a $100,000 life insurance policy on
which he pays about $400 a year in premiums -- with the beneficiary being
the university.

Considine said the fact the properties in which his client is an owner each
carry mortgages was not mentioned in previous stories and left the wrong
impression about Basi.

"It's very unfair to vilify somebody who hasn't even been charged,"
Considine said.

Meanwhile, three people arrested in Victoria last month in a drug case
linked to the raid on the B.C. legislature has left the country, Victoria
Police Chief Paul Battershill said Monday.

"We're not naming the individual," he said.

"We're not saying where he went. But we are aware that one individual has
left the country."

Battershill said the man's departure is not of particular concern.

"Eventually, if charges are laid then there would be a process in place to
return the person."

Battershill said the man was one of nine people arrested in Toronto,
Vancouver and Victoria in the weeks prior to the raid on the B.C. legislature.

The people were arrested as part of an investigation into a conspiracy to
transport marijuana to the United States and trade it for cocaine, which
was then distributed in Canada.

Battershill said it's common practice to arrest people without charge early
in a major investigation.

"On large-scale conspiracies now, it's necessary to put together a fairly
large disclosure package. So a process that's been in place, actually the
last few years, is that the search warrants are executed and the persons
are told what they're being investigated for. The evidence is collected and
then the entire package is put together and forwarded to federal Crown."

Battershill said the people can be interviewed at the time of arrest, or
simply be taken into custody so that the warrants can be carried out properly.

"In some circumstances, if they're cooperative, it's not necessary to
arrest them."