WARRANTS STAY SEALED - FOR NOW

Documents Contain Details About Raids On Legislature, Homes Of Top
Government Appointees

Evidence seized from the legislature in last weekend's raids may be
"protected by cabinet privilege" and it could be another two weeks
before police can even look at it, prosecutors said in court Friday.

As a result, the search warrants used to get that evidence should
remain sealed to protect "innocent persons" named in them until police
can review the information gathered, special prosecutor William
Berardino told B.C. Supreme Court Associate Chief Justice Patrick Dohm.

But media lawyer Barry Gibson, representing The Vancouver Sun and
three other CanWest outlets, argued that an October, 2003 ruling in
the Ontario Court of Appeal "made it clear that you must have specific
and compelling grounds for suggesting that disclosure of information
will interfere with an ongoing investigation."

Without those grounds, Gibson argued, the public has an overwhelming
right to know some details about the case, which involves a tangled
web of illegal drugs, organized crime, police corruption, and key
insiders of the provincial and federal Liberal parties.

"We have raids at the legislature. We have police officers at press
conferences making reference to money laundering," Gibson said.

"We have rumours about BC Rail.

"We have ties to federal Liberals, and no one knows what is going
on."

How, Gibson asked, can people have confidence in public officials and
public institutions with so many questions unanswered? "While my
clients do not want to prejudice an ongoing investigation, they do
believe that the public has a right to know what these investigations
entail," he said.

Gibson had not seen the documents prepared by the Crown to request the
warrants be sealed, but was told of the general nature of the
arguments. They included safeguarding the integrity of the police
investigation, protecting innocent persons, and concerns about
informants, he said.

Berardino revealed little in court about the police investigation or
the warrants.

He told Dohm that lawyers worked over Christmas and New Year's on a
protocol to determine how the evidence seized from the legislature
could be viewed by investigators without compromising cabinet privacy.
He anticipated it will take about two more weeks of working with
lawyers for the government and other involved parties to reach an agreement.

Dohm was the judge who approved the warrants and agreed to seal them
when police sought permission to search the premises about a week ago.
He adjourned the media application to unseal the documents until Jan.
14 to give lawyers time to work out a protocol.

"We are in the process of confirming the details of a protocol under
which the documents will be reviewed by the court and/or a
representative of the Speaker of the legislative assembly to address
concerns about privilege," Berardino said.

"The RCMP will not review the materials in question until that process
has been completed."

The evidence seized Dec. 28 from the legislature was delivered
directly to the Supreme Court, and remains there in sealed boxes.

Berardino argued keeping the search warrants under similar lock and
key is "manifestly appropriate."

"The public in these circumstances has the clear overriding interest
in the proper administration of justice," he said.

The RCMP says nine warrants were issued last Sunday to search seven
premises in Victoria and the Lower Mainland. Police will not reveal
the locations of the searches, but The Sun has learned they include:

* The legislature offices of Finance Minister Gary Collins'
ministerial assistant Dave Basi and Transportation Minister Judith
Reid's ministerial assistant Bob Virk. Basi has since been fired, and
Virk has been suspended with pay.

* The Victoria home of Basi, who is also a key federal Liberal
organizer.

* The Victoria office of Pilothouse Public Affairs director Brian
Kieran, and the Vancouver office of the lobbying firm's other
director, Erik Bornman. Bornman is communications director of the B.C.
chapter of the federal Liberal party.

* The Vancouver home office of Bruce Clark, the brother of Deputy
Premier Christy Clark and the main fundraiser for the B.C. chapter of
the federal Liberals. Clark says he is not a suspect, but had
documents of interest to police.

* Another home office in the Lower Mainland.

The RCMP visited the Port Moody home office of Christy Clark's
husband, Mark Marissen, who voluntarily handed over material requested
by police. Marissen said officers did not have a search warrant, and
told him he was an "innocent recipient" of the documents.

Basi's lawyer, Chris Considine, said in court Friday that his client
is eager to clear his name and his reputation as quickly as possible,
but was agreeable to the Crown's request to delay the hearing until
mid-January to protect his "rights and privacy interests."

Virk's lawyer, Kevin McCullough, also agreed.

Basi and Virk are brothers-in-law, having married sisters.

Media lawyer Michael Skene, representing CTV and The Globe and Mail,
urged Dohm to make the same ruling he did in 1999, when reporters
wanted to see the search warrants used in connection with the raid on
the home of then NDP premier Glen Clark. At that time, Dohm ruled an
edited version of the search warrants could be released, a compromise
to protect the investigation and to inform the public.

Skene hopes that media lawyers will be able to meet with prosecutors
over the next week and a half to discuss a potential summary of the
warrants.

"They are remarkable circumstances. There is tremendous public
interest [in this case]," he told the judge.

Before Dohm made his ruling, Gibson said in court the hearing should
not be delayed while the protocol to look at the legislature evidence
was established. He argued the media is not asking for access to
evidence, only to the search warrants "so that the people of the
province can get some idea of what is going on here."

Meanwhile, Finance Minister Collins is resuming his Hawaii vacation
after interrupting it this week to return to Victoria to answer
reporters' questions about the raids. Premier Gordon Campbell, who is
also vacationing in Hawaii, is not scheduled to return until next week.

Collins said Friday he has no direct knowledge of the investigation
and has never had reason to question the integrity of Basi during
their 12-year friendship.

But Collins admits the mysterious affair, alleged to involve drugs and
organized crime, is politically damaging even though no politicians
are involved.

"It's not good for government. It's not good for anybody," Collins
said. "I was in opposition for 10 years and know that when information
has to be kept confidential as part of an investigation, people
speculate on what might be there. More often than not, the speculation
is bigger than the actual facts."

Collins also dismissed concerns expressed Friday by Liberal MP Herb
Dhaliwal, a former federal cabinet minister, who demanded to know why
political aides in Victoria would be involved in undermining him in
his own riding.

Late last year, Dhaliwal was embarrassed when he lost the nomination
to run in the next federal election in his own riding -- Vancouver
South -- to Shinder Purewal, a pro-Paul Martin candidate.

It is believed that Basi and Virk were instrumental in delivering
significant Indo-Canadian support to Purewal, undermining Dhaliwal, a
staunch supporter of former prime minister Jean Chretien.

"Herb says they were involved and I've heard others say they weren't.
I don't know one way or another. In politics, if you want to win you
get more people out than the other guy. Herb had the opportunity to do
that and I guess he didn't," Collins said. "I don't honestly know what
happened there. It's obviously embarrassing when a senior minister
doesn't have the confidence of his riding association but that's his
issue."