For the first time, B.C. Premier Gordon Campbell looked anxious and uncomfortable facing questions about a government transaction that took place six years ago. But now there is a true whiff of scandal about the 2003 sale of BC Rail.
The story is complicated, which explains why, until recently, it has failed to penetrate the consciousness of most British Columbians. It is not one easily explained on the nightly news, or even in newspapers for that matter.
It arises out of the now-infamous raid on the B.C. Legislature in December, 2003, which led to corruption charges against three government aides. In short, they are accused of leaking insider information to a bidder, for a price. It's a charge they deny.
Because of the liberal disclosure laws in this country, the case has still not gone to full trial. Defence lawyers have literally spent years to subpoena documents in a bid to show that the shenanigans going on behind the scenes of the sale were the work of others, not their clients.
Until now, Mr. Campbell has deferred all questions about the matter to Attorney-General Wally Oppal. And the former B.C. Supreme Court justice has repeatedly declined to comment, saying the matter is before the courts. That has earned him the nickname, Stonewally.
But heading into a caucus meeting Tuesday, the Premier was confronted by reporters wanting to ask about the work Liberal Party strategist Patrick Kinsella did for BC Rail between 2003 and 2005.
The Premier looked rattled and sounded defensive. He mostly stuck to his standard line: He couldn't talk about it.
But this matter is much more serious now. Specifically, the Premier needs to address the re-emergence in this story of Mr. Kinsella, whose name is well known in political circles across the country.
He's been the often-unseen force behind election campaigns waged by prime ministers and premiers from Ontario to B.C. He managed the last two successful campaigns of the B.C. Liberals.
He is a close friend of Mr. Campbell. And recently a memo surfaced that showed he was on the payroll of BC Rail during the period the Crown corporation was being sold. Mr. Kinsella was paid just under $300,000. He issued a statement saying he was helping his client navigate a government review of all programs and services.
In other words, nothing apparently to do with the selling of BC Rail.
But information is likely to surface today that contradicts that statement - a memo that not only connects Mr. Kinsella with BC Rail and the sale of its assets but also with the Premier's office.
This news will surely spark fresh questions about the role Mr. Kinsella was simultaneously playing with CN Rail. The New Democratic Party opposition will undoubtedly want to focus on the increasing appearance that Mr. Kinsella was helping CN Rail with its ultimately successful bid to buy BC Rail at the same time as he was working for the seller.
During the bid period, Mr. Kinsella was seen entering the Premier's wing of the legislature with CN chairman David McLean on more than one occasion. The relationship between Mr. Kinsella and CN was raised in the legislature in May, 2003, by then-NDP MLA Joy MacPhail, who identified Mr. Kinsella as a paid lobbyist for the national rail line.
In an exchange long since forgotten, Ms. MacPhail asked Mr. Campbell if he had ever met Mr. Kinsella and Mr. McLean during the bid phase.
The Premier said at the time he didn't have an answer, and that if Ms. MacPhail wanted to know she could make a freedom-of-information request.
The trail went dry after that.
But now the matter is quite different. There is the appearance that Mr. Kinsella might have been on the payroll of BC Rail and CN Rail during the $1-billion sale of the rail line. And that there were meetings and phone calls going on between Mr. Kinsella and Mr. Campbell and/or members of his office.
I phoned CN yesterday to ask if Mr. Kinsella was a paid consultant or lobbyist during the bid process, and spokesperson Kelli Svendsen said: "We have nothing to say."
Mr. Kinsella, meantime, has long taken a vow of silence on his activities. Let's not forget that CP Rail angrily pulled out of the bid process in November, 2003, complaining that CN had the inside track all along - that the process was effectively rigged in its favour.
The news about Mr. Kinsella's backroom involvement in the rail sale, expected to be made public, is not insignificant.
Mr. Campbell needs to make a clear, unambiguous statement about what he knew about Mr. Kinsella's involvement and when.
The Premier knows, and the Attorney-General knows, he could do this without prejudicing the pretrial motions under way in the court case related to the sale. The case is being heard by judge alone, so there is no jury to taint. I'm sure the judge in the case would grant him leave to do so.
But there is no way the Premier can head into the provincial election in a few weeks' time with this matter hanging over his head.
British Columbians deserve answers. The integrity of the Premier's office is at stake.
