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.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

COVID-19 cases grow to 13 at B.C. First Nation near Fort St. James

“This is very serious,” says Nak’azdli Whut’en Chief

Directional traffic change coming to one-way street beside McLeod Elementary

This change will be in effect starting Monday, Oct. 5.

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Cullen confirmed as B.C. NDP candidate for Stikine despite party’s equity policy

Former Tahltan Central Government President Annita McPhee said the process made her feel “abused”

B.C. records 98 more COVID-19 cases, most in Lower Mainland

One new senior home outbreak, Surrey Memorial outbreak over

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

$250K reward offered as investigation continues into Sea to Sky Gondola vandalism

Police also asking for specific footage of Sea to Sky highway around time of incident

Trudeau ‘disappointed’ by RCMP treatment of Sikh officers over mask issue

World Sikh Organization of Canada said taking Sikh officers off the front lines constitutes discrimination

Liberals reach deal with NDP on COVID-19 aid bill, likely averting election

NDP and the Liberals have reached an agreement on COVID-19 sick-leave

Most Read