BREAKING NEWS/EXCLUSIVE: ‘THE BASI FILES’ (CHAPTER IV)–BASI MOOD STARTS TO DARKEN AS HE STARES INTO THE ABYSS

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I received  a call earlier today from a very good friend whose thirty years in political organizing I not only admire but greatly respect.

He remarked that it was odd to him, as it has been to me, that in these memos, Basi is so utterly reflective. Something was really beginning to bother him. Perhaps it was the pressure cooker environment; quite possibly the unethical nature of the process employed by the government. Maybe even his pivotal role in steering this whole matter under the direct orders of former Finance Minister Gary Collins and the Premier Gordon Campbell.

For those of you whom are uninitiated, a ‘Memo-to-File’ is something that is usually short(er), business-like, to the point, and not bathed in editorials or emotions.

Dave Basi was feeling the heat and he was growing impatient and rapidly frustrated. His memos, I am convinced, were just as much in case of attack, as a cathartic endeavor designed to ease his conscience. The language alone makes this obvious. Was he completely innocent? Of course not. But he was worried that the noose was tightening, and if it were made too tight, to soon, he’d not be able to escape.

As it turns out, Basi’s internal prophesy rang wholly true.

In this memo, Chapter IV of the series, Basi becomes darker and edgier. He is not entirely comfortable with his Minster (Collins) and the constant flux of competing agendas of everyone from the Premier on down to the daisy-chain of PR consultants representing the various parties, who still believed that if CN wasn’t theirs, then a consolation prize would materialize.

The opening of the memo, dated October 23, 2003, gives you a perfect glimpse into the milieu behind the scenes, not one month prior to the formal awarding of BC Rail to CN. Basi actually refers to the potential collapse of the deal (read: the abandonment by parties convinced that CN are the favoured bidder and a possible subsequent publicity nightmare) as “falling into the abyss.”

It’s clear that if any of the stakeholders wavered and went to the press with detailed accusations of corruption, the deal was in jeopardy. Plus, without CN knowing that the others were still at the table, how could the government get any commitments out of CN in advance?

Incredibly, Basi actually states this.

The astounding, shameless usury here, is completely breathtaking. The BC Liberal government, while involved in a clearly slanted process in favour of CN, a company run by David McLean–close friend of Gordon Campbell, was actually actively manipulating BNSF and OmniTRAX to stay at the table, by having aides Basi and Virk work their magic through various PR consultants salivating at the trough they could see, but couldn’t yet reach.

This is what your government descending into. This was the Premier you re-elected.

Twice.

What amazes me is how active Cabinet members like Reid and Falcon were saved from inside information, while the Premier himself and Deputy Premier Christy Clark, were active participants in discussions and advice-making. More on this later.

Basi, after describing the balancing act as “tricky” also airs his frustrations with PR consultants from Pilothouse Communications; admitted briber Erik Bornmann, Brian Kieran and Jamie Elmhirst (who is currently an active campaigner for the Christy Clark in her bid to become Premier). Basi finds himself at odds with the consistent need to juggle their “agendas and personal self-interest.”

Later, Basi unleashes on CN as he realizes their arrogance could cost the deal to collapse. Additionally, he becomes concerned that the very sensitive freight shippers are in the midst of a difficult relationship with CN because of CN’s alleged “shady side deals for their friends.”  This is incendiary, as Basi doesn’t elaborate and in the absence of an inquiry, we’ll never know what he meant or if YOUR government did business with a corporation whose intimidatory conduct towards other stakeholders through the process, crossed into even darker territory.

Additionally, Basi names for the first time, Jess Ketchum, a fellow I’ve known since 1988 and have a great deal of time for. Ketchum was representing BNSF. For the first time, too, Basi gives us a detailed account of how the Premier’s friends MUST be treated. Ketchum is a former Social Credit turned BC Liberal hierarch, who is very close to another Campbell loyalist (and major donor), Peter Armstrong, of The Armstrong Hospitality Group and Rocky Mountaineer Railtours. Armstrong, who is a close friend of CN boss David McLean, was also the fortunate winner of the valuable West Vancouver-to-Whistler line after CN took over BC Rail. The other bidder in that line, who complained bitterly about the process, was headed by businessman John Haibeck (a very reputable, respected individual), who is also husband to outgoing CTV (British Columbia) anchor Pamela Martin.

As an interesting aside, the BC Liberal government had put a condition on the sale of BC Rail to CN, that the West Vancouver to Whistler line go to an “experienced rail company” And extremely odd condition by the Campbell government, considering that that part of the BC Rail line was always loosing money…..so in the end it passed to Rocky Mountaineer and the Premier’s friend Peter Amrstrong, from Cn and the Premier’s other friend, David McLean, as Rocky Mountaineer would be the only real “rail operator” in the bidding.

Then, Basi recalled how Martyn Brown, the Premier’s (now former) Chief of Staff, badly and publicly upbraided a staffer for not (immediately) returning Jess Ketchum’s phone call.

Basi writes, “The message was simple, if you don’t return the call of a friend of the government, your (sic) going to hear about it from Martyn in front of everyone. I think the only person who speaks to the Premier more than Martyn does is Jess Ketchum.”

Subsequently, Basi lets his anger get the best of him. After being summarily used, along with Virk, for the entirety of the process the BC Liberal government directed the sale of BC Rail to CN, he speaks to Finance Minister Collins unguardedly–clearly with his ‘outside’ voice. “If things go sideways and CN proceeds to break every promise…this will be something the Premier will wear, not us.”

But as in the previous chapters, you see Collins emerging as the cool hand.

Collins, the fixer, the redeemer, the point guard for the Premier, firmly “warns” Basi that “the only viewpoint that matters is the Premier (sic).”

Below, please read Chapter IV of ‘The Basi Files’:

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Comments

61 Responses to “BREAKING NEWS/EXCLUSIVE: ‘THE BASI FILES’ (CHAPTER IV)–BASI MOOD STARTS TO DARKEN AS HE STARES INTO THE ABYSS”
  1. Robert F. says:

    Alex, the Webster Foundation should name an award after you for what you are doing. The significance of this material can not be understated.

    As a British Columbian I want to thank you on behalf of myself and my family for exposed a corrupt Premier and stoping me and my wife from voting for Christy Clark. We will vote for Abbott now.

    Thank you Alex for all you are doing. The people of the province owe you great thank yous.

    • AGT says:

      Robert:

      You are too kind. I appreciate your fine words and will promise to continue to provide you the real story behind the sale of BC Rail. And the players…

      I wish you and your family well in your deliberations and no matter whom you support, I encourage you to vote your conscience.

      It sounds like you’re doing precisely that.

      Be well.

  2. Don F. says:

    Well Alex, I am lost for words.
    This one has it all doesn’t it? An there she is, interconnections between Elmerist, Bornmann, Christy Clark, Bruce Clark. The lies to keep CN in a bargaining position by using other bidders, the Premier is finally implicated for the dictator he is, Collins the fixer who’s only concern is that of Gordon Campbell. Makes one wonder if the people of B.C. who owned the railroad were ever even a passing thought to all concerned.
    Bornmann what a piece of crap that is. Be interesting in the coming days to see how CP and Omni will react to being used this way by these mongrels. I hope Christy has a good night sleep tonight!
    And then there is the finally, ” the only viewpoint that matters is the Premiers”
    Thanks for this Alex
    Don

    • AGT says:

      Yes, thank you. I’m glad you noticed Christy’s name being specifically mentioned in the memo. I was going to point it out but thought it better to concentrate on other matters since I am in possession of other much more damaging material with respect to her direct participation in the disposal of BC Rail.

      Basi’s observations should be viewed more significantly than Bornmann’s. Basi was writing his political epitaph. He had nothing to lose at this point. He clearly saw that once the sweater snagged it would all unravel. Bornmann on the other hand, had every reason to point fingers at everyone else, in the hopes of saving his own hide. Mind, that’s the political camp he hails from…..that’s how they roll.

  3. Henri says:

    Alex just to let you know your story is getting out, your site is being referred to at prime time crime along with other sites regarding this scandal, under the banner “Stench”

    http://www.primetimecrime.com/

  4. Stephen says:

    Wow, this takes guts to publish this stuff.You have some new respect from me. I would want you to do this whether it was an NDP government who I support or these people with the most crass sense of entiltlement. The truth will set us free whatever your political stripe. Keep it going please.

  5. Deep Throat says:

    Alex:

    As per Basi’s first sentence in the second paragraph on page two regarding his concern that CP would withdraw from the RFP process (as they eventually would do), I think your readers would be interested to know that it was Pilothouse (knowing that the ‘fix’ was for CN and being the Machiavellian consultants that they were) who were the ones that orchestrated CP’s accusatory letter of withdrawal.

    They did this because they knew full well that this would ensure that their client Omni Trax would at least get Roberts Bank as a consolation prize.

    They knew that by staying in the process their client would become the last ‘stalking horse’ and thereby ensure that CN would have to pay a higher price for BC Rail then CN wanted.

    They knew that the Premier and Gary Collins would be obliged, therefore, to reward their client Omni Trax for their knowing acquiesce to this corrupt RFP process.

    Finally, it is interesting to note that the RCMP’s tapes of the meeting between Collins and the head honcho of Omni Trax at the Villa de Lupo restaurant in Yale town has never been disclosed to anyone.

  6. RonS says:

    What can I say! Absolutely astounding! I knew this government was full of liars but I never, in my wildest dreams, thought the corruption would run this deep. It was like a feeding frenzy. Mind boggling. Keep up this wonderful enlightenment!

  7. RonS says:

    Is there any way to get the RCMP tapes under the FOI?

    • AGT says:

      Anything disclosed at trial is available. Anything not disclosed may be subject to a request for release unless there was a matter of law that arose (privacy, etc.) precluding such a release of documents or related material.

  8. sharon says:

    The Province….Keith Fraser…a must read: Lobbying firm tied to Basi – Virk paid up to $10,000 a month.

    Brutal.

  9. Melfort says:

    To clarify the relationship of Rocky Mountaineer with CN, Rocky Mountaineer did not “win” the North Vancouver to Whistler line as such. What it won was the exclusive right to operate a passenger service over that line and rest of the ex-BC Rail line as far as Prince George for a period of 10 years, with an option to renew for another five years, in co-existence with CN’s freight operations. This was accompanied by the right to operate such a service over CN’s existing “B.C. North Line” route between Prince Rupert and Jasper. In effect, Rocky Mountaineer is a tenant on these lines.

    In exercise of these rights, since 2006 Rocky Mountaineer has operated a daily train (during spring and summer) aimed at the tourist market between North Vancouver and Whistler, and a less frequent two-day service between Whistler and Jasper, running on the CN North Line between Prince George and Jasper. While BC Rail’s passenger services lost money and were terminated in October 2002 (some say to help clean up unwanted loose ends before the freight operations were put up for sale/lease), the Rocky Mountaineer service is aimed at affluent tourists paying much higher fares and thus has more potential to be profitable.

    These passenger rights were won through an RFP process announced on November 27, 2003, two days after the announcement that CN had been awarded the freight operating rights, and some eight months before the takeover deal was finalized in mid-July 2004. Thus, this process was conducted jointly by both CN and the nominally-independent BC Rail in the final months of the latter’s existence. But the award to Rocky Mountaineer was not announced until September 3, 2004, some six weeks after CN had taken full control of the line.

    The timing of this RFP is significant. Every page of the RFP document in my possession is dated November 23, two days before the official announcement that CN was the successful bidder for the freight operations. It states in the introduction that “CN has been selected as the successful bidder for the operation of BC Rail. In its proposal to the Province, CN, in conjunction with BC Rail, has committed to promptly issue an RFP for the operation of Third-Party Passenger Trains.” So CN and BC Rail officials were working hand-in-glove to put this RFP together before the freight deal was formally announced. The RFP runs to 19 pages and has obviously has been vetted by lawyers, so it wasn’t cobbled together overnight.

    Now, let’s relate that timing to the bidding process for the BC Rail freight operation sale/lease/takeover.

    On October 24, the day after the latest Basi memo released by Alex, a government update issued under the authority of transportation minister Judith Reid stated that: “The Evaluation Committee continues its assessment of the three private sector proposals to revitalize BC Rail. As noted previously, no decision on a recommended proponent for negotiations will be announced until the Evaluation Committee is satisfied all issues have been adequately addressed. When that process is complete, the provincial government will make the official announcement of the successful proponent for negotiation of a rail revitalization agreement.”

    This makes it sound as though the process still has some way to go. But as far as Basi is concerned, CN is already considered the preferred bidder.

    On November 3, the government issued its next update, announcing that the “Cabinet is preparing to select a proponent, with whom the province will then enter negotiations on a final contract. To assist in those negotiations, the province has struck a steering committee that will help ensure the best deal for British Columbians.”

    For the record, that committee consisted for four cabinet ministers (Basi’s boss Gary Collins, as co-chair, with Virk’s boss, transport minister Judith Reid, being the other co-chair, Shirley Bond and Richard Neufeld, both from northern ridings), three backbench Liberal MLAs from northern ridings (Pat Bell, Roger Harris and Blair Lekstrom), and the mayors of Prince George and Squamish, the two towns with the largest BC Rail workforces.

    So as of November 3, the government is announcing that selection of the preferred bidder is imminent, implying that the choice has yet to be made. Just 22 days later, it announces that a deal has been reached with CN, meaning that the cabinet has made its choice and the steering committee has played its role. And in the meantime, a welter of public relations material is prepared for the announcement and an initial transaction contract of more than 80 pages is concluded.

    Not impossible, I suppose, but one really has to wonder if all that was completed in less than three weeks.

    In the meantime, on November 13, CP and OmniTrax were formally advised that negotiations had been proceeding with the front-running bidder; this followed a period in which they had not been in regular contact with the Evaluation Committee. The next day, the Vancouver Sun broke the news that CN had been selected, and on November 17, CP withdrew from the bidding process and complained in writing to the Premier about a “breach of fairness” in the process.

    The government would later maintain that negotiations with CN had continued right up to November 24, the day before the official announcement. But notice the discrepancy with the passenger service RFP detailed above, dated November 23, which began by stating that CN was the winning bidder for BC Rail.

    Meanwhile, on November 6, the RFP was issued for operation of the BC Rail Port Subdivision line to Roberts Bank, which has been described as a possible “consolation prize” for a losing bidder.

    I’ll be very interested to see how the dates in this chronology compare with the Basi memos that Alex has yet to release.

    • AGT says:

      NOTICE TO READER: REQUIRED READING. SUPERB COMMENT.

    • MJ Anderson says:

      Melfort: great to get this information to fill in more of the gaps.

      You say, “…November 17, CP withdrew from the bidding process and complained in writing to the Premier about a “breach of fairness” in the process.”

      Do you know what, if anything came out of that complaint? Clearly CP realized they’d been jerked around and protested to the highest level of government.

      I have a Purchasing Law Handbook filled with case studies of successful lawsuits on unfair bidding and contract awards. If I were legal counsel for CP I’d be very interested in Alex’s blog. Some very high quality information here.

      • Melfort says:

        CP’s complaint was referred to the consulting firm (Charles River Associates of Boston) that was acting as the fairness advisor on the bidding process, and CP was interviewed before that firm submitted its final report on December 17.

        The four finalists (CN, CP, OmniTrax/BNSF and RailAmerica) had been asked to submit detailed second-round proposals to the Evaluation Committee by September 15 (RailAmerica dropped out before doing so).

        CP’s complaint focused on response of the committee after those second-round proposals were submitted. While there was in-depth discussion between CN and the committee, there was no comparable detailed discussion with CP (and presumably OmniTrax).

        The fairness advisor acknowledged that the Evaluation Committee had focused on seeking further details from CN about its bid, after deciding that CN’s proposal made it the front runner. To quote the advisor: “Because there was still a reasonable degree of uncertainty as to whether CN would be selected, the competing proponents were not eliminated from the process. However, because of the sufficiently lower likelihood that these proponents would be selected, the committee and its advisors did not ask them to undertake significant efforts in clarifying their own round two proposals.”

        This would account for the period of uneasiness described by Basi in his memos. CP and OmniTrax weren’t getting much attention. At the same time, the CN proposal was being discussed with parties such as the major shippers, leading to leaks and the growing impression that CN was the front runner, as indeed it was. This scenario and its timing fits exactly with the efforts Basi was expected to make to keep the other bidders in the game.

        I’ve only seen one brief reaction by CP to the announcement of CN’s winning bid, although I can’t lay my hands on that clipping right now to quote it directly. But I remember the gist quite clearly. CP’s chief executive Rob Ritchie stated that in accepting a $1-billion bid from CN, the government was obviously putting a priority on the selling price rather than factors such as community benefits and jobs. The clear implication was that CP had put in a more balanced bid, with less cash involved but more concern for employment and community impacts

        Here’s a little tid-bit about the importance of the cash. You will often see the start-up date of operations under CN cited as July 15, 2004. But in fact, the legal changeover happened at 3 p.m. on July 14. I asked a senior BC Rail manager why this took place during the day, rather than midnight, which would seem more neat and tidy for administrative purposes. He explained that by closing the deal at 3 p.m., the government was able to deposit the $1-billion payment before the bank closed and thereby gain an extra day’s interest.

        • AGT says:

          This is fascinating. Pls do not stop offering these very insightful additions to my posts.

          Without insulting you, do you mind contacting me at agtsakumis@shaw.ca?

          You do not need to reveal yourself and may use a proxy. But I have some questions fro you which I would prefer not to ask here.

          • MJ Anderson says:

            Melfort: Again, thanks for another outstanding post.

            The majority of people don’t understand the enormous amount of time and money that goes into putting together a bid to purchase an asset, especially of the magnitude of BC Rail.

            Internal to your own company you analyze whether the asset is a strategic fit. If that’s a yes, then an internal financial analysis takes place: at what price does the cost outweigh the benefit?

            You get that number and then you go into your due diligence investigations: financial, condition of the equipment, environmental, safety etc.

            You then cycle back, refine your numbers, write the whole thing up and submit it in exact accordance with what the bid package specifies. It takes time measured in weeks and money measured in six (and probably seven!) figures to get it all done.

            After that, you wait and watch and hope like hell the process is going to be fair. If you get a gut feel something is going on that shouldn’t, be assured this is one place where you can be pretty damn sure your instincts are right. Because the penalties for a corrupted process are so severe, tinkering with it is done under cover of darkness and the cone of silence.

            The BC Rail story needs telling, not only to protect ordinary people from the rapacious practices of a too-powerful government but to uphold the integrity and sanctity of the bid process.

            Let’s keep the discussion going – it’s the most effective weapon we have to curb government excess. Paraphrasing Newton’s First Law, everything maintains its present state unless an external force acts against it.

  10. RonS says:

    After a night spent tossing and turning I have to say Alex I’m very proud that you are doing this. I know from past experience with CKNW, being a frontline HST Petitioner, the Lame Stream Media would never publish or comment on this. I’m also watching some videos regarding the Run of River deals and along with these revelations, I know I’m going to have many more restless nights. It’s hard to put in words the disgust, anger and sickening feeling while lying in bed with all this information flying around. It makes me even more determined to work hard when our chance for the recall of Marc Dalton here in Maple Ridge-Mission. Great Work!

    Here is the link for the run of rivers video’s should anyone want to watch them. http://ashlu.info/video/bcrivers.html

    Once again Cheers and keep on truckin!

  11. RS says:

    “If they feel like they have been ignored and cheated then the only thing that will beat them to the court house to file their law suit will be the headlights of the car they are driving in.”

    In light of the revelations revealed within Basi’s memos-to-file, could the “validators” not jump in their cars, turn on the lights and race to the court house?

    Hasn’t Campbell perpetrated a crime of some sort? Can’t he be prosecuted for breach of trust or fraud or larceny?

    How do they all sleep at night?

  12. ron wilton says:

    Wow Alex, finally, a reporter in BC with true journalistic gonads. My faith is restored.
    Interesting that the well written Basi noted “the track record for CN is one of broken promises and shady side deals for their friends”. Sounds like Gordo found a soul mate in McLean.
    I believe the ‘price’ that CN ‘paid’ was the original ‘price’ McLean and soul mate Campbell agreed on before Gordo was even elected.

    Speaking of epitaphs, how’s this…Here ‘Lies’ Gordon Campbell.

  13. Brian says:

    I wish I could read the file but, alas, I am on my iPhone. sigh….

  14. James says:

    Alex,

    I work very long hours and as is my routine rush home late at night to read your blog. The horror stories you have released on Bassi/Virk and the supporting cast Campbell, Clark, Collins the CCC gang and the associate members of family and friends makes sleep difficult. I will need to discipline myself to wait until morning to look at your installments.

    The CCC gang should be added to the list of the top gangs operating in BC as they seem to be better entrenched and have been the cause of more damage than any others. The CCC gang is more dangerous than a full standing army to the people of BC with the damage they have done and could do in the future.

    If Christy is so in favour of a free vote in the legislature on HST to hear the will of the people I would suggest to her a free vote on a Bassi/Virk public inquiry. I would love to hear her spin on this suggestion.

    Alex, please keep your pen sharp and your armor on. Your blog is the best on the web, even though it keeps me awake at night.

    • AGT says:

      My sincerest apologies for the insomnia! LOL!

      I will promise to keep my armor on.

      Mind, then I won’t be able to get to sleep!!! :-)

    • JoeyBirdbrain says:

      Be careful there James, you are on a slippery slope. See, first you want to vote on one lousy little tax, then you win that one and you want to vote on issues of real importance to the private powers that run BC. Like you might want to take back BC Hydro from GC’s friends or stop the destruction of coastal fisheries by the salmon farms.
      Next you will want a vote on everything of real importance because you will discover that the populous is only as stupid as they are made out to be; and that with responsibility comes information. Then you will go on to postulate that an aware and responsible public with the power of control over their destiny must inevitably become more prosperous at the expense of the private capital and media which now exploit them so mercilessly. (freedom my ass)
      From there it is only a few revolutionary steps to better food, better education, better health care – better sex! My God man, do you know what you are asking? Do you want to end up with a PhD. in philosophy with which to amuse yourself in your new wine cellar while awaiting the amorous attentions of your hard bodied revolutionary girl friend fresh from the battle of Kemano? You would need the constitution of a marathon runner. Give it up!

  15. Dave P says:

    All this for a friggin railroad!!??? What lies buried that’s really important. This is merely the tip of the iceberg- think PPP’s for one thing.

  16. g west says:

    I’ve heard, via the grapevine, one of the main reasons the MSM aren’t touching this stuff relates to a concern about libel.

    As I suggested in my original comments (on Basi memo #1) It’s likely that you’ve got that issue covered.

    What surprises me is that large media organizations, with a sizable legal staff, would be so cowed as to completely ignore the memos.

    Of course, much of Basi’s stuff has the flavor of an apologetic and it is obvious he’s skirting any mention of the fact that he has been in the habit – all through these events and prior to them – of taking payoffs he clearly knows are illegal and unethical – so it’s hard to evaluate the record as empirical evidence for anything except his own ego.

    Still, there were things in memo #1 which have put the lie to the sale as a legitimate and arms-length business deal.

    And there are a couple of sentences in this one (memo #4) which deserve to be part of someone’s headline….

    “The Premier can call this whatever he wants, a lease, a partnership, new investment etc. At the end of the day it’s a sale pure and simple, it doesn’t matter how you look at this and what you call it.”

    That has the ring of simple truth.

    Thanks again.

    • AGT says:

      Thx Garth. The libel contentions are pure drivel. That’s just media bafflegab to excuse laziness and apathy.

      I appreciate your comments and promise to keep you informed.

  17. bgreen says:

    thanks for the info, it’s no long about socialists or free enterprisers but right and wrong. Enjoyed your discussion on cknw, happy to see msm staring to pay attention, and an inquiry becoming assured. What abouts its term? A liberal candidate seeing the writing on the wall may suggest a limited inquiry
    As a conservative I am wondering if you see a candidate like Falcon , or a reborn conservative party as the best way forward?

    • AGT says:

      I’m not sure about the Tories provincially. Rey are currently hijacked by extremists.

      If they dial it down an get a decent leader then that might be a different scenario.

      Thx for stopping by. Please come again.

  18. PAUL says:

    Gawd, this story is like swimming in a sewer.

  19. I think BC’s so called mainstream media really show it’s hand and the side it stands on, bloody shameful . I’m digging the fact that you rip some thing out of the ground and shake the roots clean .Truth be told your a rising star in BC journalism. When I was a teen I loved watching Jack Webster ,,just the balls on that guy …well you got a set too man …Cheers keep up the awesome work .

  20. Disgusted says:

    memories, light the corners of my mind…

    melfort, couldn’t find Bob Ritchies comments, but do have a great little article from the Vancouver Sun.

    Here’s a sample:

    “In 2002, the government signalled it was considering privatizing the railway company, which operates a number of northern routes.

    Last July, Reid, the transportation minister, revealed that there were four potential bidders for the freight operations, most notably CN Rail and a joint venture involving OmniTRAX. The province went ahead with CN in a $1-billion deal.

    It is not clear how Basi’s alleged breach of trust relates to the bidding process.

    A spokesman for OmniTRAX, which was represented by Bornman and Pilothouse colleague Brian Kieran, told The Sun police have not contacted the rail company for information.

    The province’s lobbyist registry shows Bornman and Kieran were registered representatives of OmniTRAX and its affiliate, The Broe Companies.

    The registry information indicates they were dealing with the offices of Premier Gordon Campbell, Collins, Reid, Competition Minister Rick Thorpe, Deregulation Minister Kevin Falcon and the ministry of energy and mines.

    The decision to award the railway deal to CN was controversial.

    The Sun earlier reported that Campbell was a week away from signing the final deal when his office received a sharply worded critique of the bidding process from Marcella Szel, vice-president for legal affairs for the Canadian Pacific Railway, which was one of the bidders.

    The Liberals were insisting that three bidders were still in the running, but the CPR had concluded that CN Rail had the inside track.

    The letter complained about “a breach of fairness” and a “violation of intent” in the bidding process for BC Rail.

    Szel advised that the CPR was formally withdrawing from the bidding, a move that left only CN and OmniTrax on the official list.”

    http://www.vancouversun.com/business/Basi+probe+tied+drugs+handling+Rail+deal/1424181/story.html#ixzz18iM8fxNZ

  21. Ray Christopherson says:

    Have I missed something? I see no mention of or analysis of contributions to the Liberal Party, or references to cash payments, particularly offshore, to various parties

    • AGT says:

      Ray–I caution you that these kinds of statements can be problematic. I’m not aware of any references to offshore matters. The allegations alone is very serious. Without proof, it’s defamatory.

  22. Josef, obviously says:

    Okay… Alex I’m going to ask potentially dumb questions but I feel I have to ask on a scale of 1 for ignorant and 5 for fully in were the following…

    a) Judith Reid, then BC-Transport Minister

    b) Kevin Falcon, who clearly as Minister of State for Deregulation would have been a part of this…

    c) Christy Clark personally – not her brother, not people trading off of her brand, et al. But Christy herself.

    Thanks.

    • AGT says:

      Your scale is silly, but I’ll use it. Pay attention:

      1) Judith Reid was in it since Bobby Virk was taking direction from the Premier and others and directing the Minister on which direction to move. She left govt and was not on the potential witness list. Level of involvement: 5/5

      2) Kevin Falcon knew about the sale of course, and still foolishly refers to it as a “good deal”. But he was the only Minister who when he was told the Roberts Bank transaction was tainted (Bruce Clark was given the RFP draft by Dave Basi) Falcon immediately canceled the whole thing. Level of involvement: 3/5

      3) Christy Clark dispensed advice to Bob Virk about the shift in union matrix from public BC asset to Cn property. She also had dealings with Erik Bornmann from as far back as a year before the deal closed, when Bornmann’s notes confirm she spoke to him about, “the direction of BC Rail”. She was interviewed by the RCMP, but never charged. She told the legislature that she was essentially an arm’s length from the BC Rail deal but continued after that time to provide Cabinet level information to Virk and Bornmann. Docus confirming this will be published on this blog soon. Her brother was in possession of a draft RFP of the Roberts Bank deal. Level of involvement: OFF THE SCALES. 10+/5

  23. M. Robertson says:

    Thanks for doing this, Alex — so important.

    I think we all need to be contacting the MSM and demanding to know why they are not covering this. The more they realize the story is getting out there, the more pressure they will feel, and the more embarrassment and loss of legitimacy they ultimately risk by continuing to ignore it.

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