MARTIN DISMISSES SCANDAL AS A 'PROVINCIAL MATTER'

OTTAWA - Paul Martin will not suspend senior election campaign aides and
other key supporters who have been caught up in a criminal investigation of
a British Columbia drug trafficking and money-laundering scheme.

The Prime Minister's Office said yesterday it has not been contacted by the
RCMP about police raids involving prominent Liberal supporters of Mr.
Martin's leadership campaign and suggested the investigation centres on
"provincial matters" unrelated to federal politics.

Scott Reid, the Prime Minister's senior advisor, said Mr. Martin has no
knowledge of the criminal probe and does not believe it involves any
activities involving his leadership campaign in B.C.

"This entire matter is very puzzling," Mr Reid said. "Mr. Martin's office
has not been contacted by the RCMP. We have not had any requests to help
them in terms of the provision of any kind of information and we don't know
what the nature of the police inquiry is. Obviously, it is related to
provincial matters."

The RCMP have been tight-lipped about raids on the offices of aides to two
provincial Cabinet ministers. The aides were important players in Mr.
Martin's leadership campaign. A search warrant was also executed at the
office of a lobbying firm connected to Mr. Martin's chief B.C. leadership
organizer, Erik Bornman.

The RCMP also questioned Mark Marissen, a key Martin ally and chairman of
the B.C. federal Liberal election campaign. He is the husband of B.C.'s
Deputy Premier, Christy Clark.

None of the men has been charged with any crime.

Chuck Strahl, a Canadian Alliance MP from B.C., accused Mr. Martin of
failing the test of leadership, saying he should be "burning up the phone
lines" to determine whether his trusted supporters are implicated in
criminal matters.

"I can't believe he would say there are police raids on several of my key
folks in B.C., but it doesn't really matter and saying, 'You know, this is
just a provincial concern,'" Mr. Strahl said.

"I mean there is a criminal investigation here and, at the very least, he
should be making sure that there is nothing to it or nothing that
compromises his position as Prime Minister or his campaign people."

Mr. Strahl said Mr. Martin should ask any of the B.C. campaign workers who
were questioned by the RCMP to step aside until their names have been cleared.

David Basi was fired as a senior aide to B.C. Finance Minister Gary Collins
on Monday. Bob Virk, who worked for B.C. Transport Minister Judith Reid,
was suspended. Both men helped Mr. Martin in the recent leadership race.

Bill Cunningham, the president of the federal wing of the B.C. party, said
there is no reason for anyone to step aside until the criminal
investigation is complete.