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Basi-Virk political corruption trial ends in surprise guilty pleas

VANCOUVER — In a surprise move today in B.C. Supreme Court, Dave Basi and Bob Virk have changed their pleas to guilty at a political corruption trial.

As a result, the Crown stayed the charges against the third accused, Aneal Basi, who was accused of money laundering.

The guilty pleas bring a sudden end to the trial, which began last May and was expected to continue until next March.

The Crown contended Dave Basi and Bob Virk accepted benefits from a lobbyist in exchange for confidential information about the bidding process for the freight division of B.C. Rail.

On Monday both men pleaded guilty to accepting benefits and breach of trust. They must serve two years less a day under house arrest.

At the time of the offences, in 2003, Dave Basi was the senior political aide to finance minister Gary Collins, and Virk was the ministerial assistant to then transportation minister Judith Reid.

Aneal Basi worked in government communications.

Dave Basi and Bob Virk now admit they leaked confidential documents to Pilothouse, a lobbying firm that represented one of the B.C. Rail bidders, OmniTrax.

Aneal Basi was accused of laundering money by accepting cheques from Pilothouse and passing along money to his cousin, Dave Basi.

Dave Basi now admits he accepted benefits totalling $25,695 from Erik Bornmann of Pilothouse.

Dave Basi and Bob Virk also admit they accepted $1,500 each from the lobbyist to attend a Denver Broncos NFL football game with their wives.

The money was to cover flights, hotels and meals while in Denver, where the head office of OmniTrax was located.

Dave Basi also pleaded guilty to accepting $50,000 from a development company to get land on Vancouver Island out of the Agricultural Land Reserve.

The matter has been part of separate indictment.

Special prosecutor Bill Berardino made a submission Monday morning on an appropriate sentence to the trial judge, B.C. Supreme Court Associate Chief Justice Anne MacKenzie.

The judge said she accepted the joint submission on a conditional sentence of two years less a day to be served under house arrest.

"It is important to recognize that a conditional sentence is not a more lenient sentence," MacKenzie said.

She added there is often the shame of encountering members of the community.

The judge imposed on Dave Basi a fine of $75,695 and, if in default, he will have to serve an additional 18 months in jail.

The judge also ordered Dave Basi and Virk to perform 150 hours of community service — at least 10 hours each month, to be completed within 18 months.

The judge imposed conditions allowing the men to go outside for an hour of physical activity each day and to take part in activities with their children, and to travel to and from work.

Dave Basi, 44, has been married 23 years and has two children, aged 10 and 15.

Virk, 30, has been married nine years and has two children aged six and four years old.

Neither has a previous criminal record.

New Democratic Party MLA Mike Farnworth, who was in court for the guilty pleas, said outside court that the B.C. Rail deal has "stunk" from the beginning and now it’s time to hold a public inquiry into the matter.

He said the trial, which could have provided answers to the public, ended with a "whimper" and a plea bargain.

"One thing’s pretty clear – it stinks. It stunk from the beginning," Farnworth told reporters.

"I think the government will be extremely pleased that this will not go to full trial," he added.

"I’m not sure why a deal has been cut now but I know the government will be very, very happy," Farnworth said.

The trial, which has been plagued by repeated delays, began last May but had only completed the testimony of one witness.

It had been adjourned until today, allowing the Crown to spend last week trimming its witness list.

nhall@vancouversun.com

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