POLITICIANS SCRAMBLING TO DEAL WITH RAIDS' FALLOUT

Campbell admits concern about taint of investigation

VICTORIA -- B.C. politicians scrambled Monday to deal with politically
devastating allegations involving drugs, money-laundering and organized
crime that led directly into the offices of two cabinet ministers.

Although no politicians are being investigated by police, Premier Gordon
Campbell admitted he is concerned about the taint the police investigation
involving political staffers can have on his government.

"Obviously it's troubling to everyone," he said from his vacation spot in
Hawaii.

On Monday, the premier's office fired Dave Basi, the top political aide to
Finance Minister Gary Collins and suspended with pay Bob Virk, the top
political assistant to Transportation Minister Judith Reid.

Both their legislature offices were raided Sunday by police, who left with
dozens of boxes and a number of computer hard drives.

Collins, who is also vacationing in Hawaii, was devastated by the
allegations surrounding Basi, a long-time friend, aide and political
supporter.

"I'm pretty shocked. I'm pretty upset," Collins said. "I'm devastated by the
news as much as anybody would be. ... It's not good news for government."

No one would say what specific allegations relate to Basi or Virk -- only
that they are related to a comprehensive, 20-month police investigation into
commercial crime, drugs and organized crime.

"It sounds like it's an investigation that centres around some of his
personal activities," Collins said of Basi.

Collins has not spoken to Basi and said it would be inappropriate to speak
to him during the investigation.

Both Collins and Campbell dealt with the suggestion that the investigation
into Basi and Virk may have something to do with the government's decision
to privatize BC Rail.

Virk in the transportation ministry and Basi in the finance ministry were
key players in the government's plans to privatize BC Rail earlier this
month.

Fuelling speculation that the BC Rail privatization may have something to do
with the investigation, a consulting company that was lobbying for one of
the unsuccessful bidders was also raided.

Pilothouse Public Affairs Group Inc., which was lobbying for railroad bidder
OmniTrax, had its offices in Victoria and Vancouver searched as part of the
investigation.

Campbell said he has heard no information suggesting government policies or
decisions were in any way compromised.

"I have not been informed of anything whatsoever that would compromise any
of the decisions of government," Campbell said.

Collins remained confident in the decision to sell BC Rail to CN Rail and
said an independent auditor is currently studying the deal and how it was
reached.

"They'll do their job. I don't expect there will be any problem with that
process at all," Collins said. "This does not impact the ministers or the
elected officials and we're the ones who make the decisions sitting around
the cabinet table."

New Democratic Party MLA Jenny Kwan said Campbell should return to B.C. to
deal with the fallout of the investigation.

"Gordon Campbell should end his holidays and come back to Victoria. He needs
to demonstrate to the public that the public should have confidence in his
government," she said.

Kwan asked why one political aide was fired while the other was merely
suspended with pay.

"What does the premier's office know that the rest of the public doesn't
know? Why is there a discrepancy in the handling of these two individuals?"

The investigation extended as well to the husband of B.C.'s deputy premier.

Christy Clark said Monday she and her husband Mark Marissen first learned
about the investigation Sunday when RCMP showed up to ask questions.

"They asked for his help," Clark said. "They felt he may have been the
innocent recipient of correspondence or documents and of course, he
cooperated fully."

Clark said she did not know if the documents Marissen gave RCMP are related
to Paul Martin's leadership campaign. Marissen was the B.C. co-chair of
Martin's leadership bid.

"You'll have to ask the RCMP those questions. I wouldn't want to compromise
their investigation in any way," Clark said.

"Sunday was the first time they contacted him," Clark said. "My impression
was that he was unlikely to have any further contact with them."

Clark said she did not know how many documents were handed over, but added
it was not a whole boxful of papers.

While her husband talked to the police Sunday, Clark said she, herself, has
not been questioned or interviewed.

Clark said there has been full cooperation by the provincial government in
the continuing police investigation.

"I certainly hope this is concluded as soon as possible," she said, "other
than that, I wouldn't want to say anything that would compromise an
investigation the police have been working on for 20 months."

Both Basi and Virk have been mentioned glowingly by members of the B.C.
Liberal Party in the legislature, according to Hansard transcripts of house
proceedings.

In July 1998, Liberal Barry Penner, then in opposition, introduced Virk, his
then-legislative assistant, who was seated in the gallery.

"Bob began working for the B.C. Liberal caucus last March in a temporary
position and was later promoted to our permanent staff. His talents are well
utilized by myself as well as by the member for Richmond Centre and the
member for Port Moody-Burnaby Mountain [Christy Clark].

"Bob was born and raised in Victoria, and his knowledge of the city and the
many people in it is of great benefit to us as we do our tasks on a daily
basis here. He was educated at the University of Victoria, where he took a
number of business courses to supplement his entrepreneurial skills," Penner
said.

"On a volunteer basis, Bob is very active in the Indo-Canadian community in
Victoria and is president of the India Tigers Field Hockey Club. This group
has organized many youth events in the city, and they encourage youth to get
involved in their community. Through sporting events and through
fund-raising drives, these groups provide a recreational alternative for
Victoria's youth. As you can tell, Bob is a great asset not just to the B.C.
Liberal caucus but to the community of Victoria."

In June 1993, Liberal Jeremy Dalton thanked Basi and another man for working
as interns with the Liberal caucus. "The [NDP] cabinet will be happy to know
that all the embarrassing questions that have been thrown at them over the
months have been provided by those two gentlemen, and I can assure you,
Honourable Speaker, there will be more today," Dalton said.