NDP asks RCMP to Launch Criminal Investigation into Patrick Kinsella and CN in BC Rail Corruption Scandal.

In a bold move today, NDP MLA Leonard Krog stood on the steps of the BC Law courts building and called for a criminal investigation into that lobbyist about town, Patrick Kinsella, regarding his involvement with CN during the BC Rail deal.  Now, if only we knew where Kinsella is… and what campaign he\’s working on for the BC Liberals.

Again, I say it is time for Gordon Campbell to publicly distance himself into the activities of Patrick Kinsella during the BC Rail deal can be formally investigated by the RCMP -since that damn lobbyist registry can\’t handle this… Follows is the NDP Press release and the letter Krog sent to Deputy Commissioner Gary Bass of the RCMP.

Vancouver– From the steps of the BC Law Courts building, NDP MLA Leonard Krog today called on the RCMP to launch a criminal investigation into the BC Rail corruption scandal surrounding the Campbell Liberals.

 Krog, a lawyer, made the request in a letter sent today to Gary Bass, the RCMP’s deputy commissioner for the Pacific Region. 

 “There is compelling evidence,” says Krog, “that the man at the centre of the scandal, Liberal insider Patrick Kinsella, and CN Rail may have violated sections of the Criminal Code of Canada dealing with fraud against government.

 “We believe there are sufficient grounds for the RCMP to launch an investigation focusing on Mr. Kinsella’s dual role with BC Rail and CN,” the NDP MLA says.

 “We are asking the RCMP to move expeditiously so that British Columbians can once and for all know the truth about the corruption scandal that leads to the heart of Premier Campbell’s office.”

 Section 121(1) of the Criminal Code of Canada outlines a range of frauds on the government punishable by criminal sanction. 

 Section 121 (1) (b) makes it an offence for anyone who has dealings with government to make a payment to a government employee unless that employee has the written consent of a senior government official to receive that payment.

 Krog says CN may have broken the law because it made a payment to Kinsella when Kinsella was already under contract to BC Rail.

 Similarly, it is illegal under Section 121 (1) (c) for a government employee to accept a payment from another person or corporation which have dealings with the government unless permission to do so has been granted.

 “All the evidence we’ve seen suggests that Mr. Kinsella may have violated this part of the Criminal Code as well,” says Krog. \”

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 KROG RCMP LETTER :

 

April 20, 2009

Dear Deputy Commissioner Bass,

I write to seek an investigation into the activities of Mr. Patrick Kinsella and CN Rail regarding Mr. Kinsella’s employment contracts with British Columbia Rail and CN Rail.

According to documents released in court and available from BC Rail, as well as media reports about the issue, it appears there is evidence of at least two breaches of the Criminal Code of Canada relating to these contracts and the sale of BC Rail.

As you may be aware, the BC New Democrat Caucus recently learned that Mr. Patrick Kinsella was contracted by BC Rail to assist the government in the sale of BC Rail. Mr. Kinsella’s payments covered the years 2002-2005.

BC Rail documents referenced in the Basi/Virk court proceedings confirm that Mr. Kinsella was hired to work on the BC Rail deal. A transcription of an email between Kevin Mahoney, Vice President of BC Rail and the BC Rail accounting department describes Mr. Kinsella’s work. Mr. Mahoney confirms that the contractual payments to Mr. Kinsella are for “backroom work” on the “Path”. As you know from the RCMP investigation, the “Path” is the government code name for the BC Rail deal.

Additional documents referenced in court strongly suggest that through this period Mr. Kinsella was also under contract with CN Rail, representing their interests with government. Reference was made in court to meetings arranged by Mr. Kinsella involving the Premier and David McLean, the chairman of CN Rail.

More importantly an e-mail exchange between Mr. Mahoney and Mr. Chris Trumpy, the lead deputy minister for the government on the sale, describes Mr. Kinsella working on behalf of CN Rail. The e-mail says “Patrick Kinsella received a call from David McLean who in essence told him the deal was at risk anything they could do would be appreciated and in CN’s view needed now. Kinsella talking to Martyn for immediate support.” In media reports CN has refused to deny Mr. Kinsella was under contract.

 …2

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Page 2

Section 121 (1) (b) states it is an offence if anyone who “having dealings of any kind with the government, directly or indirectly pays a commission or reward to or confers an advantage or benefit of any kind on an employee or official of the government with which the dealings take place… unless the person has the consent in writing of the head of the branch of government with which the dealings take place”;

Likewise, Section 121 (1) (c) is also relevant. It states that anyone commits an offence who “being an official or employee of the government, directly or indirectly… agrees to accept from a person who has dealings with the government a commission, reward, advantage or benefit of any kind… unless they have the consent in writing of the head of the branch of government that employs them.”

From the evidence before the court and in the media reports regarding this matter it appears that Mr. Kinsella and CN may have breached Sections 121 (1) (b) & (c).

As noted above, Mr. Kinsella in his work on behalf of CN sought the intervention of the Premier’s office to save the CN bid in the spring of 2004. At issue at the time was the valuation of a tax advantage related to the agreement as well as a related issue regarding the term of the contract.

 It is obvious that the public interest may be differentthan the private interest at stake in the resolution of a matter like this. Section 121 (1)(C) and (B) are meant to ensure such conflicts do not impact key public decisions, such as the privatization of a significant public enterprise like BC Rail.

For these reasons I request an immediate investigation into the activities of Mr. Kinsella and CN Rail in these matters.

Sincerely,

Leonard Krog

Nanaimo, MLA

C.C. William Elliot, Commissioner, Royal Canadian Mounted Police

Robert Gillen, Assistant Deputy Minister, Criminal Justice Branch

 http://www.bcndp.ca/files/u4/krog_rcmp_letter_04_20_09.pdf

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