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Premier's chief of staff on the defence at Basi-Virk trial

Martyn Brown, Premier Gordon Campbell's Chief of Staff, told B.C. Supreme Court today that he was unaware B.C. Rail had operating profits from 1977 to 2000 before it was sold by the provincial government in 2003.

Brown also denied defence allegations that "the fix was in" to sell B.C. Rail after the B.C. Liberals were elected in 2001.

Brown came under heavy pressure in cross examination by Kevin McCullough, defence lawyer for Bob Virk - one of three former government aides facing corruption charges related to the 2003 sale of B.C. Rail for $1 billion to CN Rail.

"Are you aware that B.C. Rail had operating profits from 1977 to 2000?" McCullough asked Brown in a tense exchange.

"No, I was not aware. I'm aware of the problems they were having.....My understanding was they were saddled with debts, saddled with costs."

McCullough then made a strong allegation: "I'm suggesting the fix was in, B.C. Rail was to be sold."

Brown replied vigorously: "I would emphatically to my knowledge deny that."

McCullough: "You told Mr. Virk that CN was getting B.C. Rail."

Brown: "No - wrong - incorrect."

McCullough: "You told Mr. Virk that the appointments [to the board] to B.C. Rail were Liberal appointments, that they were going to make it happen."

Brown: "Baloney! That's not what happened."

McCullough: "Was there a decision communicated by Gordon Campbell to sell off the assets of B.C. Rail within five years of being elected?"

Brown: "That's preposterous!....That is not at all what I believe to be the case."

McCullough: "Five years - that was the plan - to sell all the assets of B.C. Rail."

Associate Chief Justice Anne MacKenzie intervened: "You asked the question - the witness denied it."

Brown: "Denied my knowledge of it, your honour."

MacKenzie: "Thanks for the correction."

In response to questions about the role of then-B.C. Rail board chair John McLernon, Brown's memory was tested.

"I'm not sure when Mr. McLernon was appointed," he replied.

Then McCullough made another startling allegation.

"On or about September 19, 2003 did you task Mr. Virk to go forward to the media to try and prevent them from running a story that CN [Rail] would be a presenter at a CIBC World Markets conference?"

CIBC World Markets was handling the sale of B.C. Rail for the provincial government at that time - CN Rail was the successful bidder. The defence argues that CN was always going to win the bid and that their clients role was to make it appear an honest competitive bidding contest took place.

Brown responded to McCullough's allegation: "I may have but I don't remember that."

McCullough: "What reason would you have to do that?"

Brown: "I can't speculate on the reason because I can't recall."

McCullough continued: "Do you know where the [B.C. Rail sale] Fairness Advisor - Charles River Associates - are located?"

Brown: "No - I'd presumed they were B.C.-based."

McCullough: "Would it surprise you to know they were based in Boston?"

Brown: "No.....they were highly recommended by Chris Trumpy [former B.C. deputy finance minister] and others."

Virk and co-accused David Basi face breach of trust and fraud charges for allegedly providing confidential government information about B.C. Rail to lobbyists representing a bidder in exchange for money and benefits. Aneal Basi faces money laundering charges.

Bill Tieleman writes about the Basi-Virk trial for The Tyee and 24 Hours Vancouver. This article first appeared on his blog.

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