B.C. Attorney General David Eby and former RCMP investigator Peter German deliver portions of report on money laundering at the B.C. legislature, March 7, 2019. (Tom Fletcher/Black Press Media)

B.C. VIEWS: Money-laundering melodrama made for TV

Public inquiry staged to point fingers before 2021 election

First it was $1 billion a year (maybe) being laundered through Lower Mainland casinos and real estate. Then it became $5 billion (maybe) in real estate alone for 2018.

These dramatic, expanding estimates have persuaded Premier John Horgan and Attorney General David Eby to put aside their serious concerns about cost and a lack of actual charges against actual crooks, and reluctantly agree with a strange chorus demanding a public inquiry into B.C. money laundering.

Eby and Finance Minister Carole James finally released two thick investigation reports this month, trying to quantify the “dirty money” in B.C.’s economy. You may have heard the most shocking conclusion, that billions were (maybe) poured into Metro Vancouver real estate, pushing up housing costs by (maybe) as much as five per cent.

The real estate report, from a panel of academics headed by former NDP deputy minister Maureen Maloney, weighed in at 184 pages. As fellow academic Murtaza Haider pointed out, “the report does not identify a single laundered dollar or account with laundered money or even a single purchase of property purchased using ill-gotten wealth.”

It used computer models and international estimates of crime, going back as far as 1995, extrapolated to Canada and then its provinces.

RELATED: Federal government won’t do its own money laundering inquiry

RELATED: Bring on B.C. money laundering probe, MLA Rich Coleman says

Contracted investigator Peter German’s first “Dirty Money” report dealt with B.C. casinos, estimating that laundering through them may have been as much as $100 million. No one really knows, because among other things, high rollers return to gamble their winnings, running the same money through again. (After all the attention on the River Rock Casino in Richmond, German now allows that this activity has mostly disappeared.)

German’s second report, among its 360 pages, deals with a Global TV news story last November. It quoted an unnamed police source saying money laundering may be 10 times as big as previously estimated, up to $1 billion in 2016 alone. Eby frequently cites this story, and indeed has developed a fawning mutual admiration society with Global TV for its supposedly ground-breaking work.

Responding to German’s inquiries about this TV story, the RCMP allowed that it has classified reports with similar estimates of real estate activities. It refused to release them even to German, himself a former senior RCMP investigator.

German’s conclusion, based on limited disclosure of RCMP data gathering methods, is this:

“The figures now in common parlance are of $1 billion or more per year of dirty money being ploughed into B.C. real estate, and of equally large sums being laundered through casinos. Unfortunately, without actually quantifying these amounts using a generally accepted model and having access to the necessary data, all estimates are guesses.”

The RCMP further contradicted this TV story, saying its still-classified report of high-end real estate purchases over two years does not focus on organized crime actors and does not measure money laundering. In short, this award-winning TV story was bogus.

In an odd move, Global TV joined the B.C. Green Party, the B.C. Government Employees Union and other partisan actors in the chorus of demands for this inquiry. Horgan and Eby had given many solid reasons why a long lawyer festival with no authority to lay charges would be a waste of time and millions.

But now they’ve decided it’s a great idea to stage an inquiry that will put previous government members on the stand, just months before the next scheduled election in the fall of 2021. They’re hoping for compliant TV coverage of that too.

Tom Fletcher is B.C. legislature reporter and columnist for Black Press Media. Email: tfletcher@blackpress.ca


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Prince Rupert shuttle service set to get underway

New shuttle bus between Prince Rupert and Terrace

Cats shot with BB gun in separate Thornhill incidents

The pets were shot in their own yards, neighbours say

B.C. log export rules killing us, northwest harvester says

NorthPac Forestry says Skeena Sawmills has plenty of timber

Terrace RCMP busy over Riverboat Days weekend

Large number of files involve underage drinking

Terrace & District Chamber of Commerce celebrates big win for LNG

Federal government moves on recommendation to provide relief on steel duties

Disney Plus to launch in Canada in November

Analysts say latest streaming service may escalate cord cutting

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

Okanagan bus driver assaulted for asking patron not to smoke

59-year-old in hospital with non-life threatening injuries

B.C. sets rules for ride hailing, same minimum fee as taxis

Larger operating areas seen as threat by cab companies

Two hiking families team up to extinguish fire in B.C. backcountry

Children and their parents worked for three hours to ensure safety of the popular hiking region

Vancouver man arrested after pregnant woman’s SUV stolen, then crashed

Police are recommending charges against a 22-year-old Vancouver man

Elections Canada to assess ‘partisan’ climate change rhetoric case by case

People’s Party of Canada Leader Maxime Bernier has said climate change is not an emergency nor caused by human

Unseasonable snow forces campers out of northeastern B.C. provincial park

Storm brought as much as 35 centimetres of snow to the Fort Nelson, Muncho Lake Park-Stone Mountain Park

Most Read