'DRUG TRADE CENTRAL TO RAID'

VICTORIA -- Cocaine and marijuana are behind the dramatic weekend raid of
two ministerial offices in the legislature, Victoria police Chief Paul
Battershill said yesterday.

He confirmed the detail without elaboration a day after police raided the
offices of Finance Minister Gary Collins and Transportation Minister Judith
Reid and carted away 30 boxes of documents and other material.

Police have said the ministers are not the targets of the probe into
organized and commercial crime. It is focused on staff in their offices --
Collins' assistant David Basi and Reid's assistant Bob Virk.

Basi was fired yesterday. Virk has been suspended with pay.

Police searched six other locations in Victoria, including an accounting
firm and the office of a lobbying firm, Pilothouse Communications.
Pilothouse worked on behalf of Omnitrax, a bidder in the privatization of
B.C. Rail.

"We don't fully understand all the issues yet," Pilothouse principal Brian
Kieran, a former Province political columnist, said yesterday. "We're
collecting further information, and when we have it we will be discussing
it with our advisers."

The Vancouver home of Kieran's partner, Erik Bornman, was searched Sunday.

Battershill said one person was arrested in Victoria over the weekend and
released. The search warrants have been sealed.

Battershill described a case that began 20 months ago related to drugs,
organized crime and a "police corruption issue." He confirmed the
corruption matter revolves around Ravinder Dosanjh, a 13-year Victoria
police officer suspended two weeks ago in connection with a case related to
the drug trade.

News reports said Dosanjh is Virk's cousin. BCTV reported that Basi and
Virk are brothers-in-law.

Battershill said there is an "indirect" relationship between the Dosanjh
case and the newly disclosed investigation.

He said it could be a while before police get a look at files,
correspondence and other materials seized in the raid, because a B.C.
Supreme Court judge has to review it to ensure cabinet privileges are
respected.

"The police do not have access to the documents at this time," he said.

He refused to comment on several aspects of the probe, including ties to
the federal Liberal Party, the use of wiretaps, whether there is an
international aspect to the case, whether influence peddling is involved
and whether the privatization of B.C. Rail was a factor.

William Berardino, a Vancouver lawyer, has been appointed an independent
special prosecutor.

In Vancouver, RCMP Sgt. John Ward said the raid at the legislature was
conducted after nine people in Vancouver, Victoria and Toronto were
arrested last week in connection with trafficking of B.C. marijuana across
the Canada-U.S. border in exchange for cocaine. All nine were released
without charge.

"Sometimes, in the course of a complex and lengthy police investigation,
other related and unrelated information surfaces, suggesting possible
criminal activity," Ward said.

He said that drug activity in B.C. has reached "critical mass."

"The result is that today we have murders, beatings, extortion and gang
warfare at a level never before seen in this province."