TERRORISTS WORK WITH GANGS: RCMP

Top Mountie Says Force Stretched Thin

Can Only Investigate A Third Of Threats

OTTAWA--The Mounties are able to investigate just one-third of the
organized crime threats in Canada at the very time that more and more
terror groups are using criminal schemes to fund their activities,
RCMP commissioner Giuliano Zaccardelli says.

Zaccardelli told the Senate Committee on National Security and
Defence yesterday that organized crime is an "equal threat" to
terrorism in Canada.

He cited the presence of motorcycle gangs, Asian gangs as well as
street gangs -- a big worry in Toronto -- which he said have become a
"major feeder" system into the other crime groups.

"Our concern, of course, is our ability to tackle them and what are
the resources that we have," Zaccardelli said.

At the same time, Zaccardelli said there's growing evidence that
unnamed terror groups are using organized crime as a front to fund
their activities.

"There is more and more indication that some terrorist groups clearly
are getting some of their finances by either directly or indirectly
supporting some criminal activity," he said.

"That is a trend that we're watching ... and has the potential to
cause us some serious problems."

He drove home the message that Canada cannot be complacent.

"There is a real threat to this country.... We are a target. There
are people outside and inside of this country that we believe can
cause us potential harm," said Zaccardelli, who did not speak to
reporters after his presentation.

His comments immediately raised concerns among committee members who
have previously warned about the unchecked growth of organized crime,
especially in airports, and at ports and border crossings.

"We have an incredible distribution network that would put UPS to
shame in terms of how drugs are distributed across the country," said
Senator Colin Kenny, chair of the committee.

"Where you have organized criminals with the capacity to move
anything through a port, that same method can be used by
terrorists.... Smugglers aren't too picky about what they move," he said.

Public Safety Minister Stockwell Day admitted that the ties between
terrorists and organized crime have been a "longstanding concern" for
intelligence forces around the globe.

Zaccardelli said the RCMP, which has 17,000 officers, lacks the
resources to do more. And while the Conservatives promised $161
million in last week's budget to hire 1,000 more officers, at least
$25 million of that will go to the justice department to hire more
lawyers, he added.

Zaccardelli also revealed that the RCMP is poised to sign a memo of
understanding next week with the Canadian Security Intelligence
Service to set new protocols for co-operation between the two
agencies that have often been accused of waging bitter turf wars.

"This will set the new tone and approach to what we believe is a
truly seamless partnership in the fight against terrorism," he said,
citing the new co-operation as one of the biggest changes over the past year.

The RCMP drew flak over Christmas for its bombshell announcement --
in the middle of the federal election campaign -- that it had begun a
criminal investigation into the possibility of a leak from the
Liberal government before a November announcement on taxation of income trusts.

The move was ammunition to the opposition parties and seen by some as
a turning point for the Liberals.

But yesterday Zaccardelli denied there has been any meddling in the
operations of the national police force.

"I receive no operational direction from anyone. I never have ... in
terms of how to manage the force, what to do with my resources," he said.

"That is an established principle that has been respected as long as
I have been around."