RUMOURS IN WAKE OF B.C. RAID 'DEVASTATING'

VANCOUVER -- Several people caught in the vortex of a police investigation
that became public a week ago when two B.C. Legislature offices were
searched, defended themselves yesterday in a bid to repair the damage
caused by an information vacuum filled with rumours.

Details of the 20-month investigation into drug smuggling and money
laundering have been obscured by sealed search warrants, a lack of charges
and by veiled comments from police, worried about jeopardizing the
investigation.

"It's been devastating just dealing with it over the past week," said Mark
Marissen, campaign chairman for Prime Minister Paul Martin's leadership bid
in British Columbia. Mr. Marissen was drawn into the scandal when he was
visited by police seeking documents.

Police had served search warrants at several locations, including on the
offices of David Basi, an assistant to B.C. Finance Minister Gary Collins,
and Bob Virk, an assistant to Transportation Minister Judith Reid.

But Mr. Marissen said his premises were not searched. He was given a letter
from police explaining that they believed he was the innocent recipient of
documents they wanted to see. Media reports that stated documents were
"seized" from his home office were incorrect, he said, and unfairly
indicated he was not assisting police.

"Basically they came to my home and they described what the situation was
and they described, sort of, the kinds of documents that they thought that
I might be in possession of. The words they used in the letter they gave me
was that I may be the innocent recipient of such documents," Mr. Marissen said.

"I did the search of the documents and then I gave them documents that I
thought would be helpful." He said police asked him not to describe the
documents they were looking for, even though he would "love" to get the
details out.

"I can only say . . . the documents did not pertain to the Liberal Party of
Canada's or the Paul Martin campaign's fundraising or organizational
activities."

Mr. Basi, who has been fired because of the police search, and Mr. Virk,
who has been suspended without pay, are known as key backroom organizers
for the federal and provincial Liberals in B.C. They have a reputation for
being able to rapidly build party membership in ridings.

Mr. Marissen said the documents police sought from him had nothing to do
with recruiting party members.

Asked if the documents were political in any way, he replied: "I guess in
the really broad sense of the terms you could use the world political. I
guess you could. But it would be pretty broad."

He said he couldn't elaborate.

Mr. Marissen, who is married to Christy Clark, B.C.'s Deputy Premier, was
asked if he would like details of the case to come out so that the air
could be cleared.

"Yeah. Absolutely," he said.

Brian Kieran, who along with Erik Bornman is a co-director of Pilot House
Public Affairs Group, has also been working to maintain his reputation
following the police investigation.

Pilot House offices were searched in Victoria and Vancouver about the same
time police raided the offices of Mr. Basi and Mr. Virk.

"We told everyone who asked that we had been made aware of the concerns
that these circumstances had raised. We do not fully understand all the
issues at this time. We are collecting further information and will be
discussing it with our advisers. And that is all we can say at this time,"
Mr. Kieran said.

He apologized for not being able to discuss the situation more fully.

Shinder Purewal, a political science lecturer at Simon Fraser University
and leading contender to become the federal Liberal candidate in
Vancouver-South Burnaby, found himself answering questions about the
scandal yesterday, even though he has not been visited by police. "They
haven't even called me," he said. But reporters have.

It has been rumoured that Mr. Purewal took over the constituency
organization in Liberal MP Herb Dhaliwal's riding, only because of
organizing support from Mr. Basi and Mr. Virk.

But Mr. Purewal denied that yesterday, saying he only knows the two men in
passing and that they have not worked on his campaign.

In a briefing yesterday, Victoria Police Chief Paul Battershill reconfirmed
that the legislature raids were linked to organized crime and drug smuggling.