PREMIER, FINANCE MINISTER REMAIN RESTING IN HAWAII

VICTORIA - The B.C. Liberals insist their ability to govern will not
be compromised by the weekend police raid that reached into the upper
echelon of their administration.

"There has been nothing to date that has been brought to my attention
that suggests there is anything that has compromised any decision by
government," declared Premier Gordon Campbell, even as he authorized
the firing of an important political appointee.

"It has nothing to do with anything that would relate to my role,"
chorused Finance Minister Gary Collins, even as his key aide was
forced to walk the plank.

The premier and the finance minister phoned in their comments from
Hawaii on Monday. Each professed to see no cause for interrupting a
midwinter vacation.

That probably won't help them to escape controversy. The seriousness
of the case -- and the apparent political connections -- make it
likely that whenever they arrive home, they'll still have to deal with
the fallout.

We have it on the authority of Solicitor-General Rich Coleman that the
case is a major one.

"Look," he told reporters during a scrum at the provincial legislature
buildings Monday, "I've been telling you guys for a long time that the
marijuana grow business, the cocaine trade, the money-laundering is a
significant problem with organized crime.

"It's not just the drug trade, it's not just the violence, but there's
also a significant amount of money that is laundered through this
process -- laundered into real estate and into illegal companies that
affect the economy, that are not reported to government."

So: organized crime, drug dealing, money laundering and a shadow economy,
operating beyond the reach of the tax-collectors and the budget-makers.

Coleman also highlighted the other dimension of the case, when he
described how the case had reached into the offices of two cabinet
ministers.

The solicitor-general refused to say when, precisely, he learned of
the political connection.

But he conceded that police had advised him sometime ago that the
investigation had touched on two ministerial aides. And though Coleman
didn't name the aides directly, he left no doubt that it was the two
whose files, correspondence and computers were the target of Sunday's
raid.

One of the aides, Bob Virk, who worked in the office of Highways
Minister Judith Reid, was suspended Monday. The other, Dave Basi, who
worked for Finance Minister Collins, was fired.

The premier made the call and Coleman, as senior minister present in
the capital, signed the requisite cabinet order. "A personnel issue,"
explained Coleman. "The people of B.C. probably hold us to a higher
level of accountability with regards to our staff." In that regard,
ministerial aides -- political appointees with a direct line to the
premier's office -- enjoy considerable access and exercise sizable
influence in this government.

Especially so in the case of Basi, whose minister was in charge of
provincial finances and also house leader, steering the entire
government legislative package.

Plus Basi was plugged into the federal Liberal party and helped
organize B.C. for Paul Martin. Indeed, if the Basi connection turns
out to have any legs, the new prime minister may face questions as
well.

There was also some suggestion from within government that this case
may have some connection, however tenuous, to the bidding process for
BC Rail.

Both highways and finance were involved in handling the
sale.

Basi, a likeable fellow in personal terms, issued a strong statement
through his lawyer Monday, professing innocence, predicting
exoneration. Virk didn't comment. Police, for their part, refused to
be drawn into speculation about the case and warned the investigation
could continue for many months.

Coleman expressed the hope that British Columbians, far from
interpreting these events as the latest in a never-ending parade of
scandals, could look on the bright side: "It clearly tells the people
of this province that we will not allow any area of our government or
our province to be compromised by organized crime."

More realistically, he said he wasn't aware of any aspects that would
make it harder for the Liberals to do their job at this time.

"But we'll see what the investigation does," he added, leaving the
door open to the police-only-know what possibilities in the months
ahead.