Independent media needs you. Join the Tyee.

Blogs

The Hook: Political news, freshly caught

BC Rail bidders pulling out created political problem: Brown

In Basi-Virk trial testimony Thursday Premier Gordon Campbell chief of staff Martyn Brown agreed with David Basi’s lawyer Michael Bolton's suggestion that the privatization of BC Rail had become a political problem for the government in November 2003. Two bidders -- Canadian Pacific and Burlington Northern Sante Fe railway companies -- had dropped out, saying the process was unfair.

"I would agree that if even one of the bidders says they have a problem with the bidding process, then that's a public perception problem," Brown responded.

Bolton then returned to the defence theme -- its allegations that CN Rail was always the favoured bidder - that "the fix was in" -- but that OmniTRAX, another bidding rail company, stayed in the process to make it seem competitive in exchange for getting a promised "consolation prize" of the Roberts Bank spur line.

Bolton: "Do you recall me talking about a 'stalking horse' -- a bidder who's staying in the process, knowing they won't win, to help the seller drive up the price?"

Brown: "You said that, yes. I said...that was preposterous."

Bolton: "But not if they were going to do other business with the BC government?"

Brown: "You'd have to ask them that."

Bolton then raised a dinner meeting between Gary Collins, then-Finance Minister, and two OmniTRAX executives - CEO Pat Broe and VP Dwight Johnson - at the Villa del Lupo restaurant in Vancouver after BC Rail had been announced as sold to CN Rail and before bids closed on the Roberts Bank spur line, worth up to an estimated $70 million.

Bolton noted to Brown that the RCMP had launched extensive surveillance of the meeting.

Bolton: "Was it appropriate for the Minister of Finance to meet with a bidder at that time?"

Brown: "I had and have great confidence in the integrity of Mr. Collins."

Bolton: "I'm going to suggest to you that it was unusual for Mr. Collins to meet Pat Broe and Dwight Johnson between the two bids - between BC Rail and the Roberts Bank subdivision."

Brown: "I don't have any view on why Mr. Collins would meet with them. You would have to ask him."

Bolton: "Did you, Mr. Campbell, Mr. Collins and Deputy Minister [Ken] Dobell meet in December 2003 to discuss the bid?"

Brown replied that they may have met - they had lots of meetings in December because it was "budget crunch time."

Bolton: "I'm going to sugget to you that Mr. Collins told that meeting he was going to meet OmniTRAX executives."

Brown: "If he did I have no recall of that whatsoever."

Bolton: "Well, he'd been advised by Charles River Associates [the BC government's fairness advisor on the sale] not to meet with bidders."

Brown: "You or Mr. [defence lawyer Kevin] McCullough told be that but I don't recall. I don't recall any discussion with Mr. Collins about any dinner meeting with OmniTRAX whatsoever."

Bolton: "The consolation prize was to be offered with thanks from the government for staying in the bidding."

Brown: "I would emphatically deny that - I cannot believe the government or Mr. Collins would be in a position to make a promise like that."

Bolton: "They would be told their Roberts Bank bid would be looked at with favour."

Brown: "The government would be grateful for all the bidders who stayed in the process. But in terms of offering a consolation prize - I would strongly say that didn't happen."

Brown added he wouldn't be surprised if Collins discussed the previous bidding process for BC Rail and thank them for their participation.

Brown: "They were a good bidder, they were an excellent corporate citizen it sounds like."

After an objection from Special Prosecutor Bill Berardino was resolved with the jury out of the courtroom, Bolton went on to the issue of BC government monitoring of the case in 2007.

Bolton told Brown that in April and May of 2007, BC government Public Affairs Bureau officer Stuart Chase was in the courtroom monitoring the case and sending reports to Victoria.

Bolton: "Did you read those reports?"

Brown: "I don't specifically remember any of them - I could have seen one or more - they did go to the Premier's Office."

Bolton: "Did you meet with Mr. Colllins after receiving those reports?"

Brown: "I don't recall."

Brown added he did meet Collins at various public events."

Brown: "I absolutely would have talked to Gary Collins between 2007 and today on a number of informal occasions."

Bolton asked Brown if he discussed the Villa del Lupo meeting with OmniTRAX.

Brown: "I don't recall having any such discussions with him."

Bolton: "When did you learn about the Villa del Lupo meeting?"

Brown: "I don't recall."

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


What have we missed? What do you think? We want to know. Comment below. Keep in mind:

Do:

  • Verify facts, debunk rumours
  • Add context and background
  • Spot typos and logical fallacies
  • Highlight reporting blind spots
  • Ignore trolls
  • Treat all with respect and curiosity
  • Connect with each other

Do not:

  • Use sexist, classist, racist or homophobic language
  • Libel or defame
  • Bully or troll
  • Troll patrol. Instead, flag suspect activity.
comments powered by Disqus