Thursday, September 16, 2010

RailGate Reunion....The Witness And The Minister

Timelines
MatterVille


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Thursday 6:00pm....Updates at the bottom of the post....
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OK.

Bear with me for a moment or two here, because I want to establish a timeline of how RailGate originated.....

Spring of 1996....Gordon Campbell promises to privatize BC Rail....Barely loses election to Glen Clark he really should have won.

1996-2001...Gordon Campbell's political friend and uncles, which include CN Boss David McLean, RockyMountain Railtours Boss Peter Armstrong, and campaign co-chair Patrick Kinsella, help raise and/or donate oodles and oodles of money to Mr. Campbell's political party...Former BC Reform party staffer Martyn Brown is hired as an 'advisor' to Mr. Campbell.

Spring of 2001....Gordon Campbell promises NOT to privatize BC Rail....Wins election in a landslide....Brings in John McLernon to head BC Rail Board who assembles a very fine group of Directors that includes Mr. Brian Kenning (who also gave oodles of money to Mr. Campbell's party in the run-up to the 2001 election).

August of 2001.... BC Rail hires Campbell campaign co-chair Kinsella to provide the company with 'strategic advice' at $6,000 per month for 49 months until 2005.


Fall of 2001...The very fine BC Rail Board, according to now Basi-Virk-Basi Trial witness Mr. Kenning, tells the government of Gordon Campbell (and, presumably, its then chief-of-staff Mr. Martyn Brown) that the railway should be privatized.....Witness Kenning also tells the Basi-Virk-Basi courtroom that it took a year to convince the government of this.


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So.

Did it really take a year (ie. from the Fall of 2001 to the Fall of 2002) for the BC Rail Board to convince the government of Gordon Campbell to sell-off the entire railway and break it's 2001 election promise?

Well, according to public statements by then Campbell goverment Transport Minister in charge of BC Rail, Judith Reid*, in the Summer of 2002, you just might conclude that that was actually the case.

Why?

Because at that time, according to Ms. Reid, they were only planning to sell off parts of the people's railway to make it more profitable such that BC Rail could continue on as a viable Crown corporation.

Luckily, the statements of then Minister Reid were recorded for posterity by Paul Willcocks in an Op-Ed piece published in the Vancouver Sun on August 10th, 2002:**

BC Rail is quietly planning to sell its longest stretch of track to a private operator, the latest step in what critics call a slow-motion Liberal flip-flop on privatization.

And to make the deal attractive, BC Rail is asking municipalities for a subsidy to the new owner, something the Liberals pledged to eliminate provincially but consider acceptable from municipal governments.

On the block is the 400-kilometre line that runs from Fort St. John to Fort Nelson. No one has talked publicly about the sale, but BC Rail president Mark Mudie has met with local mayors to pitch the need for a property tax break that would cost them about $850,000 a year in potential tax revenue.

Transportation Minister Judith Reid said Friday the plan to sell the line -- the latest in a series of shutdowns and sell-offs at BC Rail -- doesn't break the Liberals' campaign promise to keep BC Rail as a Crown corporation. The Fort Nelson subdivision is a money-loser, she said. "The alternative is to close this line."


But here's the thing.....

Was that really the case?

Did the government of Gordon Campbell really and truly have no intention of selling off the entire railway in August of 2002?

And, more, to the point did Gordon Campbell himself?


(Note to PAB-Bots....Despite what you probably think we don't know, we are actually pretty sure we do... Know the answer to that last question, I mean.......Stay tuned)



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*Of course, in August of 2002, Ms. Reid was also co-accused Robert Virk's boss.
**Apologies, don't have a link for Mr. Willcocks column....I do however have then entire thing...If anybody wants it, please send me an Email at: pacificgazette at yahoo dot ca...
It is not lost on us that RailGate obsessives have probably already noticed that Mr. W's OpEd contains a reference to, surprise!, former BC Rail president Mr. Mark Mudie....Mr. Mudie, who by all accounts really was trying to make a go of the thing, was fired before the month was out. .....And even if you are not a Railgate obsessive, the circumstances surrounding that firing will not be lost on you if you have been paying attention....
Post lunchtime-update....This post has been up for twenty minutes now....Sitemeter tells me that the PAB-Bots have this one on speed-dial....Talk to you all after work...
Post-workday updatier....In his VSun piece today, Neal Hall says the payments to Mr. Kinsella were $7,000 per month...He may want to go to the source material on that one....And if any Citizen J's were in the courtroom today, enquiring minds would should like to know precisely when the matter of the good Mr. Kinsella's compensation came up today...Mr. Hall did have one new bit of info, that stablemate Keith Fraser did not, which is that witness Kenning suggested that there was a 'Chinese Wall' between the CIBC World Market folks and the rest of the CIBC regular folks such that everything was kept confidential etc....Honestly...After all we've gone through with solicitor/banker/client privilege, I just about fell off my chair laughing when I read that codswallop....


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18 comments:

BC Mary said...

A tip o'the tuque to you, RossK, for eagle-eyed attention to important details.

Now ... [ahem ...] ... is it OK by you if I add it to my collection at The Legislature Raids?

Looking forward to more ...

Ian said...

RossK, the first draft of the Comm strategy prepared by National Public Relations says the BC Rail Board has recommended privatization but no decision has been made. The date of that draft is November 2002.

But why hire National to prepare a comprehensive privatization comm strategy if the decision isn't a forgone conclusion - as you suggest here. There's passing it through cabinet and then there's deciding in your own heads what has to be passed through cabinet. Those two things don't have to occur at the same time.

RossK said...

Mary--

Please do.

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Ian--

Very, very, very interesting.

Can you send me the details so that we can add it to the timeline (i.e. take it a further three months past Ms. Reid's statements)?

Thanks.

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Secondlook said...

Well done, RossK - no doubt the devil is always in the detail.

To that end it is important to note the genesis of Martyn Brown's path in politics/linkages, now Campbell's Chief of Staff.

Some people will say that what I am posting is not related to BC Rail . . . but I respectfully disagree.

Martyn was entrenched with VanderZalm during his reign of terror and followed him into BC Reform with Delany - same old muck and selfish agendas.

Any wonder the continued chaos under Campbell with many of the same gang that aided and abetted under VanderZalm: a very active3 Armstrong, Martyn Brown, Kinsella, Lyall Knott - all involved with BC Rail;

There is no difference between the agenda practiced by the Zalm or Campbell - just different 'prizes' of public assets were targeted. When the Zalm was forced to resign in disgrace the boys disowned his image and moved on.

For those of us who understand the 'insider' sloth that dates back decades . . . it is folly for anyone to follow the pied piper Zalm as he lusts only for power & his own private interests.

Of course BC Rail is a travesty and the more that is revealed the better because it clearly educates people as to behind the scenes malevolence that has been festering since the Zalm's era.

British Columbia needs a good cleanup at the top; the BC Rail scandal and HST chaos are simple symptomatic of a much bigger problem that has become engrained in the poltical/justice systems.

Until this matter is targeted nothing will change.

God help BC if people are blind enough to allow the likes of VanderZalm to portray himself as some born again white knight - NOT - because of their justifiable, deep anger against the Campbell Govt.

For what it's worth, I believe a broader perspective with BC Rail in the spotlight and all that it encompasses, is a key to British Columbia's return to political sanity and economic health for the people. People don't change and the rotten linkages are ingrained with this circle.

RossK said...

secondlook--

There most definitely is a lot to be found, devilish and otherwise, in the details.

And I very much agree with you on the reincarnation of Mr. Vanderzalm.

It is one of the reasons I have written so little about the tax revolt.

I mean, I understand why, for example, Mr. Tieleman is trying to hive off the red meat faction from the Gordon Campbell party, in terms of the realpolitick vote splitting thing, but....

In my mind, in the end, all prop is bad prop regardless.

North Van's Grumps said...

Loved the closing question that McCullough lobbed at the witness, one that he's suggested that he think over, not for Friday, but Monday.

The question goes to the heart of the research that you (RossK and Norman Farrell) dived into on the question of indemnity.

Mr. Kenning agreed that the amount included in the sale was $250 million and by compounding the amount to today it would be worth........ and that's where the Defense lawyer for Bobby Virk has left Mr. Kenning. His first estimate, more a guestimate is $500 million, before the gavel sounded, ending today's session.

And before I forget, there was National Public Relations and there was National Labrador (the names shows up in YW notebooks Binder 2A) mentioned in today's proceedings. Throw in the name Randy Wood with National Labrador.

RossK said...

NVG--

Beautiful!

What a kicker...CP, it could be surmised, smoked them out on the hidden tax incentive thing with it's high bid at the very beginning....

Funny, don't you think, how SP Berardino tried to get that out of the way right at the front end of Mr. Kenning's testimony...

Ha!

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kootcoot said...

"Of course BC Rail is a travesty and the more that is revealed the better because it clearly educates people as to behind the scenes malevolence that has been festering since the Zalm's era."

I would suggest that the festering goes back to that feller who went into insider stock fraud/trading after politics - namely, Bennett the Lesser!

The dismantling of his father's legacy (BC Rail, BC Ferries, BC Hydro etc.) began under the alcoholic son's watch, but was relatively glacial until Herr/Capo Scampbell was handed the keys to drive the province into the ditch!

Kim said...

Agreed, the rot goes deep into our past. Remember "Honest" Bob Sommers, the forest minister under WAC Bennett? Wasn't he run out of office for accepting bribes for TFLs?

We have to agree that politics in this province have never been for the faint of heart. Same goes for Canada now that I think about it. But on all levels, things have gotten decidedly evil lately. It feels like an endgame, in a game of chess where not only are we pawns, we didn't even know it until recently. Well, speaking for myself of course.

Secondlook said...

I appreciate your reply and insight, RossK.

Whew . . . good to see that you share the same clear perspective re: Warped Willy using the current political crisis for his own manipulations.

I 'get' and agree what you said:

I mean, I understand why, for example, Mr. Tieleman is trying to hive off the red meat faction from the Gordon Campbell party, in terms of the realpolitick vote splitting thing, but....

It's all about the "but": an ill conceived mistep - perhaps fueled by a heafty dose of political expediency but . . . 'slip slidin' into the mud & mud tends to stick!

Anyone who would share a stage with this tried and true 'joke' of a former Premier, as Mr. Tielman most certainly knows, is frankly creepy given they helped bring him down;

tainted optics that will probably turn a lot of voters off the NDP.

It is a sad commentary that any BCers - over and above Campbell's sour 'soup'- would allow themselves to get sucked in by this former deceitful Premier believing he was going to lead them anywhere but into oblivion as before with ironically, many of the same gang around that holds hands with Campbell.
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Yes, Koot . . . Bill B has a lot to answer for, including not taking critical action to stop the Zalm succession at the Leadership.

He has everything to thank his father, the Honourable WAC Bennett for; he would never have become Premier without his Dad's name and legacy.

Secondlook said...

This statement above:

"Anyone who would share a stage with this tried and true 'joke' of a former Premier, as Mr. Tielman most certainly knows, is frankly creepy given they helped bring him down;"

. . more properly was meant to read:

"Anyone who would share a stage with this tried and true 'joke of a former Premier, as Mr. Tielman most certainly knows he is, creates a creepy scene given that the NDP helped bring him (the Zalm) down."

. . . that's better!

RossK said...

Thanks SL--

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Koot--

Thanks for telling us how you really feel, and I know most of it is justified....

But I've gotta tell'ya - the perjoratives really make me cringe.

Why?

Because when it comes to lifestyle stuff, I really do try to follow the 'there but the grace of the goddess go I' adage..

North Van's Grumps said...

Sometimes to find a specific item on what has been written on the BC Rail sell off you have to go back and look for your own name eg. North Van's Grumps, and so I did.

I came up with this item:3885 Deltaport Way, its an address, which once entered into Google Map, AND using Streetview.... I guess the boys who used to work as Board of Directors for BC Rail never thought someone would go down this path.... we arrive at a stretch of highway that has no building on it... BUT in the "British Columbia Railway Company 2
2009/10 - 2011/12 Service Plan Update" at http://www.bcrco.com/2009servplan.pdf they have this to say:

"Location of Operations
The corporate offices for BCRC and its subsidiaries are located at:
Suite 600 - 221 West Esplanade
North Vancouver, BC
V7M 3J3
BCR Properties also has an operations facility located near Roberts Bank at 3885 Deltaport Way, but all business and administrative functions are managed through the BCRC corporate office in North Vancouver."

Snip

"Since completing the railway lease agreement with CN and the marine terminal lease agreement with Kinder Morgan, BCRC has been reduced to a staff of about 30. Capacity is currently adequate to fulfill its mandate. However, as Gateway and port-related opportunities evolve into development projects, additional resources may need to be added."

now you are going to love this last section:

BCRC’s business activities are mostly in competition with the private sector. As a result, BCRC does not disclose the major sources of revenue and expenses as this is regarded as confidential information.

SharingIsGood said...

Kim,
I couldn't agree more with this part of your statement, "It feels like an endgame." Since the days of Bill the Lesser, I have never trusted the Socreds s Socreds or their new name: BC Liberals. Everything they do smacks of insider trading and old boys networking. It reminds me of what happens between sporters of ivy-league ties. On that note, I wonder if one could find any Dartmouth connections (buckets of cash) in all of this? If the those pools of money don't exist, perhaps our fearless leader just learned from his self-important Dartmouth peers how the plundering was done, centuries back, in New England and the Ohio territory. Perhaps his pump was already primed when he became part of repeating the process in BC.

SharingIsGood said...

Further to my last post, It appears that Jeffrey R. Immelt, CEO of General Electric and Dartmouth Alumnus have had meetings with one another. I wonder what they might have agreed upon? I do know that GE has been the major backer of Plutonic Power, the largest ROR IPP given contracts in BC.

SharingIsGood said...

Many appologies:
This:
"Further to my last post, It appears that Jeffrey R. Immelt, CEO of General Electric and Dartmouth Alumnus have had meetings with one another."

Should have read:
Further to my last post, It appears that Jeffrey R. Immelt, CEO of General Electric (Dartmouth Alumnus), and Gordon Campbell have met with one another.

Anonymous said...

Dear SIG, I was doing a search for "Insider trading", not because of what you wrote way back on September 16, 2010, (above) but because I was curious today to see if a name, a prominent name, would come up in conjunction with the phrase. And it did. But not wanting to jump to the wrong conclusion, I went looking for definition of the phrase "Insider Trading" and came up with this from the U.S. Securities and Exchange Commission:

"Insider Trading

"Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. For more information about this type of insider trading and the reports insiders must file, please read "Forms 3, 4, 5" in our Fast Answers databank.

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information."

http://www.sec.gov/answers/insider.htm

Anonymous said...

Alberta Securities Commission - Insider Trading Report
Transactions entered between 2002-07-27 and 2002-08-02

http://www.albertasecurities.com/DisComp/Insider%20Trading%20Library/5827/InsiderTradingAugust2_2002.pdf