GUERGIS DENIES COCAINE CLAIM

Alleged Photos Show Prostitutes In MP's Presence

OTTAWA - MP Helena Guergis is flatly denying allegations that
photographs exist of her and her husband, former MP Rahim Jaffer,
socializing in the presence of prostitutes and cocaine users.

It was the potential existence of those photos that appear to have
prompted Prime Minister Stephen Harper to kick Guergis out of cabinet,
suspend her from the Conservative caucus and call in the RCMP and the
ethics commissioner.

Harper and his inner circle of advisers were alerted about the
photographs last Thursday by private investigator Derrick Snowdy.

Snowdy had been investigating Nazim Gillani, a Toronto businessperson,
for an unnamed client when Gillani boasted he had photographs taken on
his cellphone that showed Guergis and Jaffer in the presence of
prostitutes and cocaine use.

In an interview from Europe, Snowdy told Global National that he had
not seen the photographs.

"All of my information is related to Nazim Gillani (this) is exactly
what I told the ethics commissioner on Friday," Snowdy said. "I have
no complaint against the minister. I have no complaint against any
member of the House (of Commons). I never saw Mr. Jaffer or Ms.
Guergis use cocaine. Mr. Gillani made several boastful remarks. A
number of his more bizarre boasts had legs."

Guergis "vigorously denies" all claims suggesting that she and Jaffer
were photographed in the presence of prostitutes and cocaine.

Guergis' lawyer Howard Rubel issued a statement saying the allegations
are "completely false."

And Gillani, through a spokesperson, also said Snowdy's claims are
false.

"Naz never told anyone he had photographs nor does he have photographs
of Jaffer, Guergis, cocaine and partying," said Brian Kilgore.

Meanwhile, the Conservative government on Thursday had to defend
itself from charges made by opposition MPs that it had sent the
federal ethics watchdog on a wild-goose chase, after she explained she
was getting her information about allegations against former minister
Guergis mainly from the media.

Mary Dawson, the federal ethics commissioner, said Harper never told
her specifically what to investigate, nor did he even request that she
launch an investigation when he fired Guergis.

"I've had one referral from the PM, but it wasn't an official
request," Dawson told CBC radio's The Current. "I have to have
reasonable grounds, and I have to have a section of the act or the
code - and it could be either - indicated with respect to what it is
I'm to investigate and I don't have either of those things." Dawson's
comments followed a statement earlier this week in which she said she
did not have enough information to investigate the allegations at the
time, but was monitoring the situation.

Snowdy said he spoke to Dawson last Friday, the day after he was
prompted to raise the alarm about Guergis and Jaffer after he read
newspaper reports last week about a meeting Jaffer had with Gillani.

Jaffer met with Gillani for dinner at a downtown Toronto steak house
on Sept. 10.

Later that evening, as he drove to his home in Alliston, Ont., Jaffer
was arrested for possession of cocaine and drunk driving.

He was by himself at the time of the arrest. Guergis was returning
from a business trip at the time.

Those charges would later be dropped and Jaffer would pay a fine for
careless driving.

Gillani is in court next week to face fraud charges on a matter that
is related neither to Guergis nor to anything Snowdy was
investigating.

Snowdy confirmed he was posing as a potential investor when he met
Gillani. For Snowdy, the role-playing was part of his investigation on
behalf of his unnamed client. During their discussions, Snowdy said
Gillani told him he had photos taken with his cellphone of Guergis and
Jaffer, prostitutes and cocaine users.

Said Guergis' lawyer Howard Rubel on Thursday: "After days of unfair
speculation we finally know what the allegations (against Guergis) are. More
important, we know that the source of these allegations is a report from a
private investigator who, apparently while presenting himself as another
potential victim of a man currently facing fraud charges, was told these
ridiculous 'boasts' in an attempt to convince the investigator to do
business with him. We believe these circumstances speak for themselves.

"Ms. Guergis vigorously denies all of this man's bizarre claims, and
looks forward to helping the RCMP demonstrate that they are completely
false."