16 June 2010

Premier's Chief Shocked to Learn of Cabinet Minister's Resignation, Basi-Virk Trial Hears

Vancouver British Columbia - Premier Gordon Campbell's chief of staff was shocked to learn Wednesday that Blair Lekstrom resigned as a cabinet minister last Friday.
 
"I have not been following the news," Martyn Brown testified at the Basi-Virk political corruption trial.
 
"By design, I have not been reading the news or was aware of it," he explained during his eighth day of cross-examination.
 
The bizarre revelation arose as defence lawyer Michael Bolton was questioning the premier's top political advisor about an 21 Apr 2009 column by Vancouver Sun columnist Vaughn Palmer, who had quoted cabinet minister Blair Lekstrom.
 
"He's left the caucus now," the lawyer suggested to Brown about Lekstrom.
 
"No he has not, he's currently the minister of energy mines and resources," the witness replied.
 
There were a few moments of silence as everyone in the courtroom looked at Brown to see if he was joking, in light of Blair's high-profile resignation last Friday over the HST tax.
 
Defence lawyer Kevin McCullough then piped up from his seat, saying Lekstrom's resignation from cabinet and the Liberal caucus "has been on the front page of every newspaper."
 
The judge briefly admonished McCullough for his off-the-cuff remarks.
 
"That comes as a complete revelation to me and a rather disappointing one as well," Brown said of Lekstrom's resignation, which was a bombshell for the B.C. government last week.
 
He explained:  "I want the court to know I have not been following the news."
 
He said he didn't want anything to taint his evidence, so he hasn't watched the TV news or read any newspapers. He also has not contacted his office in Victoria, he added.
 
Bolton also showed another Vaughn Palmer column, published 19 Nov 2003, which detailed how The Vancouver Sun had received a copy of a letter from CP Rail to the premier's office, complaining about a lack of fairness in the bidding process and withdrawing its bid.
 
In response, the government released a "fairness report" from consultant Charles River Associates, which concluded the bidding process was "fair and impartial."
 
Bolton suggested to Brown that the fairness report authors did not contact CP Rail or another bidder, OmniTrax, and instead wrote a "phony report" to justify CN as the winning bidder.
 
"I don't accept that," Brown said. "I don't believe that for a second. It reflects the highest level of integrity."
 
The report was flattering to the government's handling of the bidding process, he said.
 
"It was a great report and corroborates everything we had done," Brown told the court.
 
He said he found the lawyer's suggestion "offensive" and didn't accept the defence theory that there was a "grand conspiracy of a pre-ordained outcome."
 
Last week, McCullough asked Brown if he was aware that a Liberal government staffer contacted Boston-based Charles River Associates and asked if they could get people to attend a luncheon speech the B.C. premier was giving in New York in October 2003, before the $250,000 report was finalized.
 
The witness said he didn't know anything about that or the cost of the fairness report. But he admitted that political staff always tried to fill seats when the premier was giving a speech.
 
Brown, who will continue his ninth day of cross-exam Thursday, is the first Crown witness to be called at the trial, which began 18 May 2010 and is expected to continue until next March.
 
At the centre of the trial is the controversial privatization of BC Rail, which was opened to public tender bidding in May 2003.
 
Premier Gordon Campbell promised during the 2001 election campaign not to sell the publicly-owned railway.
 
The government announced 25 Nov 2003 that CN Rail was the winning bidder, although the deal wasn't finalized until July 2004.
 
CN paid $1 billion to take over the railway operations. The government maintains BC Rail wasn't sold but CN has a long-term lease of up to 990 years, if the government renews CN's lease options. The province still owns the tracks and land.
 
Neal Hall.