(The following story by Keith Fraser and Ian Bailey of The Province appeared at Canada.com on January 12.)
VANCOUVER — Canadian National Railway remains committed to buying B.C. Rail despite claims of a link between a police raid on the legislature and the sale, says a spokesman.
Mark Hallman declined comment on the investigation, but said CN is forging ahead.
“We think it has significant benefits for the province of B.C. Our particular offer brings value to the table,” he said.
Hallman admitted that CN is monitoring media reports on the police search, which targeted the offices of the assistants to the ministers of transportation and finance. The raid capped a 20-month investigation of drugs, commercial crime and organized crime.
“We are interested observers of the B.C. political scene,” Hallman said from Concord, Ont., site of one of the company’s largest marshalling yards.
CN is paying B.C. $1 billion for outstanding shares of B.C. Rail, along with the right to operate over its roadbed under a long-term lease.
CN’s commitments, announced in November, include plans to buy new rail cars, upgrade boxcars, eliminate B.C. Rail’s debt and make various investments in northern B.C.
The company beat out three other bidders to assume control of the
92-year-old railway.
Police have said no elected officials are being targeted in the investigation. No charges have been laid. Media reports have suggested police are interested in whether one of the aides, Dave Basi, was involved in breach of trust in his handling of the deal.
Hallman said the police have not sought any information from CN.
Some northern B.C. community leaders say they are worried about the cloud hanging over the sale.
Quesnel Mayor Nate Bello said his council opposed the privatization scheme but is now trying to make the best of it. Talk of a link between government aides raided by police and the work they did during the sale may hurt the struggling economy, he said.
“If anything is murky, it should be uncovered. The public should know what’s going on,” he said.
Prince George Mayor Colin Kinsley said he spoke to both government aides being investigated by police — Basi and Robert Virk — numerous times during the bidding process that led to CN’s purchase, but found nothing untoward in his dealings with them.
“But we don’t need a taint on this thing,” he said. “We need to have the thing resolved. We need to get on with business. We’ve got to grow that railway. It’s a lifeline to the north and particularly to Prince George.”
Williams Lake Coun. Scott Nelson said he hopes there was no improper political interference, but if there was, the deal should be put on hold.
“It certainly calls into question the [bidding] process. There’s been a lot of discussion behind the scenes about what type of information was given out and when it was given out and certainly how it was given out by whom. With the recent raid that’s taken place in Victoria, the people of the north want more fair access as to how B.C. Rail has been involved.”
B.C. Rail spokesman Alan Dever said his company had no connection with anyone associated with the story.
Transportation Minister Judith Reid was unavailable for comment.