Monday, April 20, 2009


BC Rail corruption scandal: RCMP asked for criminal investigation into Patrick Kinsella and CN



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.

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 different than 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.


Leonard Krog

Nanaimo, MLA

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

Robert Gillen, Assistant Deputy Minister, Criminal Justice Branch


Outstanding letter. WHAM.POW.SPLAT.

Too bad the RCMP sucks too, not the rank and file, but the organizational entity, leaders and it's relationship to both the provincial and federal governments.
It makes it hard for all of these guys to actually receive justice for what they've done to the people of BC. Parasites one & all. They should have to make restitution to the citizens and taxpayers of our province. It's just not right the things that have been done and it's time for things to be corrected.

Krog is going to make a great Attorney General. :=)
Stonewally deferred to the RCMP on the Ian Bush and Robert Dziekanski atrocities. They'll get quid pro quo for that.

The RCMP rarely takes anything that they can pass off as a civil matter. Only a handful of members have any knowledge of forensic accounting. And these investigations are laughably slow.

There won't be any investigation of the BC Rail incident until there is a change of government. Ontario's Progressive Conservatives floated the Duddley George case until government change. That won't happen unless Carol James promotes democratic revolution in this province. The justice system is a tyranny, that allows for no change. And that is aggravated by the fact that police services dictate print media copy to a high degree. Over half of "Province" covers are cop generated. Hopefully that will change when Canwest is bankrupted. We should break out the champagne when that happens.
Did you see Vaughn Palmer's column today?

It, or rather this blog author, should rewrite BC Liberal's historic announcement on November 25, 2003 and call out the true value of the BC Rail deal being sold to CN Rail.

POINT FIVE BILLION!!!! which sounds a lot better than a mere fifth, at "ONE BILLION"....

If the government can't stop the bleeding, at 9% interest per year, compounding, in less than seven years the value will be a whopping NIL.
Reminder to all:

Anonymous comments are no longer accepted on this blog.

Please choose a USER NAME and re-submit,

making sure that there is nothing libelous in what you write.
Post a Comment

<< Home