A defence lawyer alleged yesterday that new evidence about B.C. Rail executives' bonuses shows the 2003 sale of B.C. Rail was planned at least 15 months before the B.C government publicly announced it, and that it was not an auction of bidders as claimed.

In B.C. Supreme Court, lawyer Kevin McCullough cited a Feb.19, 2002 e-mail to Bob Virk from then-B.C. Rail Vice-President Kevin Mahoney that outlines significant "change of control" incentives as well as lengthy retention and severance payments for some B.C. Rail executives. Virk, David Basi and Aneal Basi are former B.C. government aides facing corruption charges related to the B.C. Rail sale.

McCullough, acting for Virk, said the evidence shows Mahoney was promised a four-month "change of control" payment, a 12-month retention bonus and an additional guarantee of 16-months severance, although he had only been in his position for about two years.

McCullough alleged the pay packages were put in place before the B.C. Liberal government had completed its "core review" of provincial assets like B.C. Rail and before the May 16, 2003 announcement of a request for proposals to buy B.C.Rail.

"They [the B.C. Liberals] promise not to sell B.C. Rail in the election but before the core review, before the sale, they put these incentive packages in," McCullough said. "The best way to get the smooth sale of these assets is to make a motivated package for these executives, to encourage executing and being behind the sale..." he alleged.

Bill Tieleman is a columnist for 24 Hours Vancouver. You can read a longer version of this article on his blog.