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Bob Mackin (Updated July 4) 

The mayor of the city with the highest proportion of ethnic Chinese in British Columbia says he will not boycott a People’s Republic of China-sponsored reception at September’s Union of B.C. Municipalities convention.

Mayor Malcolm Brodie (left) and China’s Consulate-Gen. Tong Xiaoling in 2018 (PRC)

“I think the issue of civil rights in China has always been an issue and there have been protests of many kinds going back over the years,” said Richmond Mayor Malcolm Brodie in an interview with theBreaker.news. “From the city’s point of view, we have a very strong business sector, we have a huge number of ties between Richmond and China, Hong Kong and Taiwan, so I think from my point of view it’s just important we communicate. I don’t know that refusing to go to a reception is going to have any measurable effect on the entire issue and, so, from my point of view, if I’m able to, I will attend.”

Port Coquitlam Mayor Brad West told theBreaker.news last week that the UBCM should refuse the Chinese consulate’s $6,000 sponsorship payment and free food and booze reception on the grounds that it is a form of foreign lobbying and that China has a deplorable human rights record. In a May interview, Australian author Clive Hamilton called influence-buying and influence-gathering standard operating procedure for the Chinese Communist Party. 

Two Canadians, Michael Spavor and Michael Kovrig, were jailed in China last December in retaliation for the arrest of Huawei executive Meng Wanzhou at Vancouver International Airport. Meng is wanted in the United States on fraud charges. China has since stopped buying Canola and Canadian meat. Meanwhile, a million Uighur Muslims have been interned in Xinjiang on religious grounds and mass-protests in Hong Kong erupted last month against a proposed extradition law with China. China promised to let Hong Kong govern itself for 50 years after the United Kingdom ceded control to Beijing in 1997. 

China’s Vancouver consulate has sponsored the UBCM convention since 2012, when Xi Jinping became president. Brodie said remarks by Chinese consulate officials at the receptions he has attended have been about trade and economic development.

“People will make up their own minds whether they should attend that reception or not, but there has always been a diversity of receptions and other activities in association with UBCM.”

PoCo Mayor Brad West (Twitter)

Brodie said a reception at the convention sponsored by CUPE could also be seen as inappropriate, because Richmond is heading into contract negotiations with the city workers’ union. Brodie conceded that the substance of the lobbying by the consulate and the union cannot be compared.

“If you’re going to start picking and choosing you need to be consistent about it,” Brodie said. “Like everybody else, we have to be fair and balanced in our approach and get past any kind of overt lobbying that may go on. Having been at previous receptions at UBCM hosted by the PRC, I think the idea that we’re being lobbied at those events, other than to open up general lines of communication, I really think may be overemphasized.”

China is B.C.’s second biggest trading partner, behind the U.S. The 2016 Census found 107,080 of Richmond’s 196,660 residents were ethnic Chinese. Nearly 45% reported their mother tongue was Chinese. Cantonese led with 43,295, ahead of Mandarin at 39,540.

Brodie’s Canada Day itinerary included the late afternoon Canadian National Day Multicultural Carnival at King George Park in Richmond, hosted by the pro-Beijing Canadian Alliance of Chinese Associations.

In March, CACA chair Chen Yongtao was a guest delegate to the 13th National Committee of the Chinese People’s Political Consultative Conference in Beijing. The carnival featured People’s Republic of China Consul Gen. Tong Xiaoling, Deputy Wang Chengjun and senior consul staff Hu Qiquan, Wang Jin and Ding Tian.

Brodie said he was not aware of Chen’s political affiliation and said he did not hear any political discussions at the event. “It was clearly a celebration of Canada, right down to the lion dance, where they had a dragon that went into the shape of a maple leaf,” Brodie said.

Three MPs, four MLAs and a councillor each from Richmond and Burnaby also attended.

Richmond Mayor Malcolm Brodie with Burnaby Coun. James Wang (left) and Richmond Coun. Chak Au at a Canada Day event in Richmond hosted by a Chinese Communist Party-related group. (Phoenix TV)

Since West complained to the UBCM, Delta Mayor George Harvie and Kamloops Mayor Ken Christian have said they would boycott the reception. Vancouver Mayor Kennedy Stewart will also not attend China’s reception at the UBCM, said spokesman Alvin Singh. 

“In the Mayor’s experience, these events do not accomplish anything constructive and thus he avoids them no matter who is hosting,” Singh said. He added that Stewart “prefers direct meetings with specific goals,” such as a June 24 meeting he had with Hong Kong’s representative to Canada where Stewart raised the Hong Kong diaspora’s opposition to the extradition bill. 

On Canada Day, Victoria Mayor Lisa Helps Tweeted that “China and Canada have a very strong and long relationship. Like all relationships, sometimes there are challenges. UBCM always has a reception hosted by the Chinese Consul and unless Ottawa directs, I think it should continue this year.”

On Twitter, West said he was “appalled at [Helps’s] morally compromised, pathetic rationalization of UBCM taking money from China.” He pointed out that UBCM has not always featured such a reception and the reception began without a membership resolution or direction from Ottawa.

“Ottawa has directed the Trans Mountain pipeline be built and the Mayor fights it tooth and nail. Why do the heinous actions of China get a pass?” West wrote.

Brodie was re-elected for a fifth time in 2018. One of his challengers, Richmond real estate and immigration lawyer Hong Guo, denied that China is a human rights abuser. 

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Bob Mackin (Updated July 4)  The mayor of

Bob Mackin

B.C. Lottery Corporation’s head of security and compliance for almost four years suddenly departed July 2.

A mid-afternoon internal staff memo announced the end of Rob Kroeker’s employment with the Crown corporation. A similar statement published later on the BCLC website said it was “effective today” and thanked Kroeker for his service. No reason was given.

BCLC CEO Jim Lightbody did not respond to a message from theBreaker.news.

Spokeswoman Lara Gerrits would not say when or if Kroeker gave notice and refused to confirm or deny that Kroeker had been fired. Gerrits cited the employment history clauses of the Freedom of Information and Protection of Privacy laws. Ryan Panton, a spokesman for Attorney General David Eby, said the ministry would not comment for privacy reasons.

Asked about any severance payment to Kroeker, she said that would be in BCLC’s annual Financial Information Act report.

BCLC’s Desmarais (left), Lightbody and Kroeker (BCLC)

It is the fourth high-profile BCLC executive departure since last November, but the most-significant because it comes just over a year since Peter German’s scathing 2018 Dirty Money report on money laundering in B.C. casinos. 

Taking over Kroeker’s job on an interim basis is Brad Desmarais, the vice-president of casinos. The retired RCMP and Vancouver Police officer was Kroeker’s predecessor before his 2015 promotion. Desmarais oversaw the bungled rollout of anti-money laundering software in 2013 when he was then-head of security. Kroeker, Desmarais and Lightbody attended a Macau convention on Asian gambling in 2017 while B.C.’s government was in flux.

Preceding Kroeker out the door at BCLC’s Virtual Way Vancouver office were: 

  • Susan Dolinski, who left last November after more than 11 years  as vice-president of public affairs;
  • and Monica Bohm, who left in May as vice-president of digital and enterprise services. She had been with BCLC for 11 and a half years.

Chief financial officer Amanda Hobson’s resignation was announced in an April 25 news release that included complimentary quotes from Lightbody. She is joining Finning as senior vice-president of investor relations and treasury. Her bio remains this week on the BCLC website. BCLC did not issue news releases when Dolinski and Bohm left.

According to last year’s statement of financial information, BCLC paid Kroeker $241,437 (plus $50,471 in expenses), Bohm $240,672 ($34,753), Dolinski $243,063  ($34,642) and Hobson $256,782 ($62,740).

The Kroeker, Bohm, Dolinski and Hobson departures come under the new NDP-appointed board of directors headed by former JP Morgan investment banker Peter Kappel.

Kroeker changed his LinkedIn profile to call himself a “management consultant” on July 2. By late afternoon, after BCLC confirmed his departure, his bio was finally removed from the BCLC website. Coincidentally, Kroeker left five days after BCLC’s PlayNow website briefly took bets on whether the Vancouver Canucks would extend general manager Jim Benning’s contract or fire him.

Ex-BCLC VP Susan Dolinski (BCLC)

Kroeker, a former RCMP officer, joined BCLC after heading security at Great Canadian Gaming’s River Rock Casino Resort. After the NDP took over in July 2017, British Columbians learned that River Rock had been a magnet for transnational money launderers, peaking in July 2015. Kroeker had boasted in an August 2015 interview with Business in Vancouver that it would be impossible to launder money at River Rock. Meanwhile, BCLC financial reports boasted of the revenue from high stakes Asian gamblers.

Under Premier Christy Clark, the BC Liberals appointed Kroeker to the Justice Institute of B.C. board. He was forced out as chair in October of last year in the wake of the German report, which detailed how money from whale gamblers from China flowed into the illicit drug trade and real estate market.

Last week, Kroeker was on the list of registrants to attend the Trace International Bribery and Economic Crime Summit in Vancouver, where German and Attorney General David Eby were featured speakers. 

Also representing BCLC at the BECS was Kevin deBruyckere, the former RCMP inspector who was the chief investigator of Project Everywhichway, the code name for the probe into the BC Rail privatization. deBruyckere joined BCLC in April after three years as HSBC’s head of anti-money laundering investigations.

Two months ago, the Horgan NDP government announced a judicial public inquiry into money laundering in B.C. Hearings are expected to begin this fall. Justice Austin Cullen has a May 2021 report deadline. 

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Bob Mackin B.C. Lottery Corporation’s head of security

A decade ago this weekend, the King of Ponzi Schemers was sentenced to 150 years in jail.

New Yorker Bernie Madoff pleaded guilty in March 2009. His lawyer wanted only a dozen years, but Judge Denny Chin made sure he would never leave jail alive for bilking $65 billion from tens of thousands of investors.

No reporter knows Madoff better than Diana Henriques, author of The Wizard of Lies: Bernie Madoff and the Death of Trust. The New York Times bestseller was made into an HBO film starring Robert De Niro.

Investigative reporter Diana Henriques (dianabhenriques.com)

Henriques is one of the best in the business at following the money. She was in Vancouver last week to speak at the Trace International Bribery and Economic Crime Summit.

“I actually had known Bernie before you’d ever heard of him,” Henriques told theBreaker.news Podcast host Bob Mackin. “He had been a trailblazing innovator in the world of NASDAQ, even before the world of NASDAQ.”

He could buy a stock for $1 a share and sell it for $4 under the radar. He harnessed the potential of technology to further his scheming.

“You could almost say he automated Ponzi schemes, he did for the Ponzi scheme what he did for over the counter stock trading,” Henriques said. 

A decade later, are investors and regulators wiser?

Henriques said there have been steps forward, such as reformation of the SEC whistleblower office. But poorly funded policing of markets and a lack of trained, experienced people mean there is still a long way to go.

“I am hoping it won’t take another giant Ponzi scheme to get to the point where effective regulation is taken,” she said.

Listen to the full interview with Henriques. Plus commentaries and Pacific Rim and Pacific Northwest headlines.

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A decade ago this weekend, the King

Bob Mackin

An SNC-Lavalin executive said he was at a meeting in Montreal with the engineering and construction company’s top global executives on the same day that RCMP officers raided headquarters more than seven years ago.

Hentie Dirker, the company’s chief integrity officer, spoke June 26 at the Trace International Bribery and Economic Crime Summit in Vancouver. Dirker was, on April 13, 2012, still the regional compliance officer for Siemens Canada when he was invited with the CEO of Siemens Canada to speak at the SNC-Lavalin meeting.

SNC-Lavalin chief integrity officer Hentie Dirker

He said they were there to tell the SNC-Lavalin executives from the Siemens experience how the company could still succeed “even if things happened and there were issues and bad people doing bad things.”

“SNC, as a company, was trying to take all the necessary steps to make sure how do we get past this and what can we learn from companies that went through this already,” he said, referring to the Siemens global bribery scandal that exploded in 2005.

Dirker said the execution of a search warrant at SNC-Lavalin headquarters happened while he was on stage. “We had to stop the meeting at the time,” he said.

Police eventually arrested fired SNC-Lavalin CEO Pierre Duhaime in November of 2012 over allegations of bribery around SNC-Lavalin’s McGill University superhospital contract. Duhaime pleaded guilty to breach of trust earlier this year. The company was charged in 2015 for allegedly paying $48 million in bribes to Libyan officials and defrauding the Libyan government for $130 million between 2001 and 2011.

Dirker joined SNC-Lavalin in 2015 to spearhead its turnaround, which employed the Siemens corporate compliance program as its way forward.

In his presentation, Dirker referred to Neil Bruce, the SNC-Lavalin CEO who suddenly retired earlier this month. Dirker said Bruce likened the trials and tribulations of SNC-Lavalin to an egg with distinct pieces, but the media had “managed to scramble it.”

“They see a scrambled egg, a lot of times there is no timeline to all the issues, people get confused about what has happened, when it happened,” Dirker said.

Dirker said that SNC-Lavalin is counting down to April 2021, when it reaches the eighth anniversary of its debarment from World Bank-funded infrastructure projects. In 2021, SNC-Lavalin can ask for an early release from the suspension, if it can show a viable compliance program.

Dirker said SNC-Lavalin has reached a number of settlements to avoid criminal prosecution, including an administrative agreement with Public Works Canada.

“The odd one out, that we really hope we can still get to, is under the remediation process that Canada recently implemented,” he said. “We were not invited in September, October, when it was launched, we still do not know why.”

SNC-Lavalin’s lobbying of the Trudeau Liberal government, in a bid to avoid the trial, sparked accusations of interference by the Prime Minister’s Office after ex-Attorney General Jody Wilson-Raybould refused to overturn the director of prosecutions’ decision last fall.

In March, the Federal Court of Canada denied SNC-Lavalin’s appeal of the federal director of prosecutions’ decision to proceed with criminal prosecution instead of remediation. At the end of May, a judge in Quebec ruled SNC-Lavalin would stand trial for the Libyan bribery and corruption case. If convicted, SNC-Lavalin would be barred from federally funded infrastructure projects. 

Despite the company’s uncertain future, the Horgan NDP government in British Columbia has shortlisted SNC-Lavalin for the $1.4 billion Pattullo Bridge replacement and the $2.83 billion Broadway SkyTrain subway.

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Bob Mackin An SNC-Lavalin executive said he was

Bob Mackin

A real estate investor originally from China is appealing a $1.5 million property tax bill in B.C. Supreme Court.

According to a June 21 petition to the court, Guozhang Wang immigrated to Canada with his family in 2010 and sold his lumber business to his in-laws, Guofang Zhao and his wife Dan Huang for 8 million renminbi. Guofang and Dan did not have 8 million RMB, so they agreed to repay without interest and and without a deadline. They asked for an additional 12.4 million RMB in August 2015, but began repaying when the business improved, including $1.8 million in March 2017.

Vancouver homeowner disputing foreign buyer’s tax on Shaughnessy House (Samuel Cheng)

Wang had already bought four westside properties in 2011, rented them and sold them in 2013 and 2014.

In November 2016, Wang bought a house at 5584 Churchill St. for $8.62 million, but could not find a lender for a $4.31 million mortgage. His CIBC mortgage broker suggested he find a guarantor. So Dan became a 1% title holder through a January 2017 contract purchase addendum.

Wang paid the foreign buyer tax on Dan’s 1% interest, but was assessed $1,529,600, which includes $1,280,070 in foreign buyers’ tax.

In March of this year, the Finance Ministry confirmed the assessment on assumption that the loan repayment in March 2017 was for the acquisition of the Churchill property, deeming Dan had acquired beneficial interest.

The petition argues that Dan does not have a beneficial interest in the property.

“Dan and Guofang do not have any involvement in a real estate business in China or in Canada,” said the petition. “Dan and Guofang have not even visited Canada, aside from one transitory stay of one day (on a YVR layover). The only reason why Dan is on title is because she acted as the guarantor for the petitioner’s mortgage and at CIBC’s request, as added to the title.”

The eight-bedroom, five-bathroom house at the centre of the tax dispute was listed for sale at $11.8 million. 

None of the allegations has been proven in court.

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Bob Mackin A real estate investor originally from

Bob Mackin

A group calling itself Canada Strong and Proud is robocalling Canadians, with a two-question survey about federal party preference and support for oil and gas pipelines.

A 292-word “About Us” page appears on its website. Spoiler alert: it does not actually offer information about the shadowy organization. No names, titles, affiliations or office addresses. No privacy statement — even though Canada Strong and Proud wants to know who you are and how to reach you for its database. Makes you wonder, is it really Canadian-run? 

It is part of the race to campaign anonymously through June 30, after which campaign-period disclosure rules kick-in on the way to the Oct. 21 federal election. You can blame Prime Minister Justin Trudeau and the Liberal Party of Canada for letting this happen.

In this era of the permanent campaign, why not order full transparency for all political campaigns, at all times?

Click below to listen to the robocall and the organization’s outgoing message. 

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Bob Mackin A group calling itself Canada Strong

Bob Mackin

Troubled SNC-Lavalin is one of the three shortlisted bidders for the $2.83 billion Broadway Subway.

The Montreal engineering and construction company, which faces a criminal corruption trial in Quebec, has been involved with every stage of building rapid transit in Metro Vancouver and is considered a favourite to extend SkyTrain’s Millennium Line under Broadway to Arbutus.

Trevena (left) and Horgan tout toll free B.C., but not free information in B.C. (BC Gov)

Also shortlisted by the B.C. NDP government on June 25 were Spain’s Dragados and Calgary’s Aecon, under the Broadway Connect name, and the Spanish-Italian Acciona-Ghella Joint Venture. The preferred bidder is scheduled to be chosen in spring 2020.

For the Broadway Subway, SNC-Lavalin is officially listed under “West 9th Partners,” but the news release does not say who the partners actually are. It is a list of SNC-Lavalin companies: SNC-Lavalin Capital Inc., SNC-Lavalin Constructors Pacific Inc., SNC-Lavalin Inc. and SNC-Lavalin Group Inc.

The company’s tunnelling partner on the Canada Line and Evergreen Line projects was the Italian-headquartered Seli Group. Some of Seli’s Canada Line workers were imported from Latin America and paid less than European counterparts. On the Evergreen Line, the boring machine was stalled for six months in the sinkhole-prone tunnel.

Additionally, SNC-Lavalin Constructors Pacific Inc. was one of dozens of SNC-Lavalin entities that were banned in 2013 from bidding on World Bank-funded projects after corruption in Southeast Asia. If convicted in Quebec, SNC-Lavalin would be disqualified from federally funded infrastructure contracts in Canada and may cease to exist.

Despite all of SNC-Lavalin’s warts, Horgan seemed unconcerned when asked in March about the possibility it could win another major project in B.C. 

“SNC-Lavalin is a large company,” Horgan told reporters. “They put in bids on projects around the world and we’ll look at that closely and if they’re the best bidder and they can meet the requirements of the people of British Columbia, then they will be successful.”

Acciona is the contractor for the stalled $778 million North Shore Wastewater Treatment Plant project in North Vancouver. District of North Vancouver issued a Stop Work order April 10, after a $20 million B.C. Supreme Court lawsuit against Acciona by subcontractor Tetra Tech that ground construction to a halt in March.

Acciona is also a partner with SNC-Lavalin in a joint venture bid for the $1.4 billion Pattullo Bridge replacement. The key matchmaker appears to be Jim Burke, the former head of SNC-Lavalin operations in B.C. who now works as a consultant to Acciona. Burke has intimate knowledge of the Broadway Subway project, due to his time on the due diligence panel that advised the B.C. government on TransLink’s business case. theBreaker.news recently confirmed that South Surrey-resident Burke made political donations while he was with SNC-Lavalin’s Vancouver office to campaigns in Quebec.

In the 2010 SNC-Lavalin annual report photo, Riadh ben Aissa (left), Jim Burke and Pierre Duhaime.

Kiewit and Flatiron are the other bidders for the Pattullo, but a source has informed theBreaker.news that the contract could be awarded sooner than the scheduled fall 2019 announcement.

The NDP’s community benefits agreement that requires higher-cost union labour on provincial infrastructure projects has caused Kiewit and Flatiron to withdraw, leaving SNC-Lavalin the default winner.

The Ministry of Transportation and Infrastructure has not responded for comment.

theBreaker.news asked fairness advisor Jane Shackell, but she did not confirm or deny.

Shackell, from the law firm Miller Thomson, is the fairness advisor on both the Pattullo and Broadway Subway. Her job is to monitor all workshops and topic meetings for bidders, proposal evaluations and the selection of the preferred bidder. She also reports on an ongoing basis to the province.

“As fairness advisor for the Pattullo project, I advise the project team on fairness issues during the procurement, and report to the Project Board on whether the procurement is carried out fairly and in accordance with project documents,” Shackell said by email. “Other than providing those reports, my role does not include commenting on any aspect of the project.”

Shackell’s name may be familiar to B.C. politicos. According to Elections Canada, she has donated $28,535.31 to the Liberal Party of Canada since 2005.

The companies above have worked together on other projects.

SNC-Lavalin truck in Yaletown, outside a Liberal May 22 fundraiser

Broadway Subway bidders SNC-Lavalin, Aecon, Dragados and Acciona also have contracts on BC Hydro’s $10.7 billion Site C dam. Kiewit and Flatiron previously combined to build the $3 billion Port Mann Bridge. Dragados and Carlson were partnered on Flatiron’s Pattullo bid.

SNC-Lavalin is the main builder of the new $4.4 billion Samuel Champlain Bridge in Montreal, with Dragados parent ACS and the ACS subsidiary Hochtieff.

theBreaker.news also confirmed that SNC-Lavalin vice-president Sam Boutziouvis has lobbied B.C. government officials since last fall — including the office of Transportation Minister Claire Trevena — despite anti-lobbying clauses in the Pattullo Bridge and Broadway Subway procurement rules. Boutziouvis and Trevena had planned to meet in Victoria on budget day in February, but a death in Boutziouvis’s family cancelled the meeting at the 11th hour.

Meanwhile, the NDP-established B.C. Infrastructure Benefits Crown corporation that hires and pays union workers on major infrastructure projects is looking for an ad agency.

On June 24, BCIB published a tender call for “creative development and production services,” with a deadline of July 9.

BCIB is shopping for an ad agency to develop campaigns to target potential workforce contractors and other stakeholders.

“We also require a more robust brand platform, building off of work conducted internally,” says the request for proposals from the yellow construction helmet logo’d Crown corporation.

The non-union Independent Contractors and Businesses Association calls BCIB a ploy to pay-off the NDP’s big money union donors.

theBreaker.news reported that BCIB CEO Irene Kerr, who formerly ran the Port Mann Bridge tolling operation, attended a May 22 Liberal Party fundraising lunch for Prime Minister Justin Trudeau’s re-election campaign. BCIB denied paying for Kerr’s lunch at the $250-a-plate event at the Opus Hotel in Yaletown.

Coincidentally, an SNC-Lavalin truck was parked outside the hotel. 

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Bob Mackin Troubled SNC-Lavalin is one of the

Bob Mackin

Vancouver city council’s member of the Union of B.C. Municipalities board is downplaying China’s sponsorship of the annual convention and party for local and provincial government officials.

“It’s an hour and a half of canapés and a bar with some speeches and trade delegation-type stuff. It’s not really super nefarious,” said Green Coun. Pete Fry, who met with Xi Jinping’s local

Pete Fry (left), Arjun Singh and Tong Xiaoling (PRC Consulate)

envoy in May to discuss the Sept. 23-27 convention in Vancouver.

The local People’s Republic of China consulate has sponsored UBCM since 2012, the year that Xi became president. Last year, the Communist Party’s supreme leader became president for life. Fry said the consulate pays $6,000 a year for an ad in the program plus whatever it costs for the catered ballroom to ply politicians and bureaucrats with free food and booze.

“We’re building a pipeline to ship bitumen to China, we’re doubling the size of Centerm port to handle more shipments from and to China, so I think there is a bigger conversation and economic development is a big part of what UBCM is supposed to be about,” said Fry, noting China is B.C.’s second-biggest trade partner, with $6.7 billion in 2017 exports.

theBreaker.news attended the 2017 UBCM convention in Vancouver, where the China reception at the Fairmont Waterfront Centre hotel featured a lecture by Acting Consul General Kong Weiwei. Kong summarized the May 15-23, 2017 China-paid junket for mayors from Cariboo Regional District, Barkerville, Williams Lake, 100 Mile House, Port Moody and Port Coquitlam and showed a propaganda video about Xi’s massive Belt and Road infrastructure program that stretches to Africa and Europe.

Scene from the 2017 UBCM party sponsored by China (Mackin)

Port Coquitlam Mayor Brad West, who was elected in 2018, said the overemphasis on trade with China is the same type of attitude that allowed South Africa’s apartheid system to continue for so long.

“I have an issue with the UBCM accepting cash for access from any foreign government, period,” West said. “The fact that it’s happening with the government of China is in many respects even worse because of that government’s atrocious human rights record. We’re talking about a government that has up to a million of its people interned [in Xinjiang] for being Muslims, you have the Canadians [Michael Kovrig and Michael Spavor] being detained, and to me that makes it even worse.”

Fry and UBCM president Arjun Singh attended a May 13 meeting with Consul-General Tong Xiaoling at China’s heavily secured consular compound in Shaughnessy. Fry said he wants to open up the UBCM convention to other countries for economic development promotion, but has had little interest so far.

PoCo Mayor Brad West (Twitter)

“Both sides agreed that the cooperative relationship between the Consulate General of China in Vancouver and UBCM contributed to mutual understanding, people to people friendship, and local cooperative opportunities between cities of China and the province of British Columbia,” reads the entry about the meeting on the consulate website. “Both sides also exchanged thoughts about how to further improve bilateral cooperation through multilateral participation.”

Asked if China’s human rights record was brought up at the meeting, Fry said “it’s not the kind of thing that was pressed too hard and it was not the kind of thing [Tong] admitted or denied anything.

“It was really just a perfunctory and rather diplomatic meeting. It included a lot of talk about weathery kind of stuff, but also the gist of the conversation was how we could navigate through this reception issue and open it up to be more about international trade and economic development, not just about international trade and economic development about China, expressing that that’s where we would like to see things going.”

NDP trade minister Bruce Ralston (right) and Chinese diplomat Kong Weiwei at the the 2017 UBCM party sponsored by China (Mackin)

West said events like the China-sponsored UBCM reception correspond with Chinese government activities in other jurisdictions, such as Australia.

“All of this is well-documented, these are not hyperbolic concerns expressed, the former head of CSIS [Richard Fadden] raised this as a significant issue,” West said. “This is real. It’s part of a methodical, coordinated and deliberate campaign by the government of China to expand its influence. Some people think they should roll out the red carpet for them, I disagree, strongly.”

U.S., Australian and Canadian authorities have cautioned about Chinese government attempts to influence local governments through pro-Beijing business and expat organizations in a coordinated program overseen by the Communist Party of China’s United Front Work Department.

Clive Hamilton, a professor at Charles Sturt University in Canberra, Australia, authored “Silent Invasion: China’s Influence in Australia.” In a May edition of theBreaker.news Podcast, Hamilton said China’s goal, through United Front, is to undermine resistance to the Chinese Communist Party.

“The CCP knows that its program of influence-buying and influence-gathering over the last decades has been extremely effective, so effective that it can get away with outrageous bullying and not get any pushback,” Hamilton said. “Whether or not the government will push back depends, essentially, on the Canadian people.”

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Bob Mackin Vancouver city council’s member of the

The House of Commons is adjourned for the summer.

Let barbecue season begin.

That means incumbents and hopefuls for the Oct. 21 federal election will spend July and August gnoshing and sipping with their donors and volunteers to prepare for the home stretch in September and October. It is a key time for organizing.

theBreaker.news Podcast host Bob Mackin welcomes back pollster Mario Canseco of Research Co to set the table for the busy summer that follows a rancorous House of Commons session, dominated by the SNC-Lavalin scandal that will continue to dog Prime Minister Justin Trudeau.

Research Co. pollster Mario Canseco (Mackin)

The session climaxed last week when the Liberals passed a motion to declare a climate change emergency one day and then approved the Trans Mountain pipeline the next.

Canseco says the NDP has to get Jagmeet Singh better known across the country. For the Conservatives, they’ll go steady on the economic front and continue to attack Trudeau for his litany of broken promises.

For Trudeau and the Liberals? “There is the advantage of incumbency,” Canseco said. “Somebody who has been there and has more experience than the rivals who are essentially running to replace him.”

Centre-left voters who backed Trudeau to get rid of the Harper Conservatives in 2015 have been repelled by the pipeline approval and the broken promise to reform the electoral system. The Conservatives are highlighting Trudeau’s scandals and failure to balance the budget by 2019.

Meanwhile, Trudeau is portraying himself as a better leader to deal with President Donald Trump. But Trudeau’s visit to the White House was overshadowed by Iran’s downing of an American drone.

Ultimately, Canseco said, the campaign will determine whether Trudeau’s Liberal government is defeated like Paul Martin in 2006 or returned with a minority father Pierre’s in 1972.

Listen to the full interview with Canseco. Plus commentaries and Pacific Rim and Pacific Northwest headlines.

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The House of Commons is adjourned for

Bob Mackin

During its last three full years of business, a Vancouver payment processing company paid its founder $15 million in salary and bonuses, according to federal criminal charges filed in Las Vegas on June 19.

PacNet founder and part-owner Rosanne Day and three others are accused of mail and wire fraud and money laundering in Las Vegas, for allegedly defrauding clients in mail order schemes.

“During the last five years it was in operation, PacNet processed on average more than $100 million per year in cheques and credit card payments from United States consumers to mass-mail clients,” said the criminal indictment filed in the U.S. District Court of Nevada.

The indictment called PacNet “the payment processor of choice for fraudulent mass mailers in the U.S. and around the world.” PacNet, prosecutors allege, was a vital link between fraudulent mass mail clients and banks, enabling fraudsters to profit from criminal schemes by moving money through the banking system undetected.

Day founded the payment processing company in 1994. In September 2016, the U.S. Treasury declared PacNet a significant criminal organization. The designation was lifted in 2017, but the company has never recovered.

Also charged were part-owner and Ireland office head Robert Paul Davis, director of marketing Genevieve Renee Frappier and chief compliance and anti-money laundering officer Miles Kelly. They could face 20 years in jail if convicted.

Davis called himself general counsel, even though he was not licensed to practice law. He was, however, a licensed pilot and often flew the company-owned plane between PacNet’s Shannon, Ireland office, the U.K. and Continental Europe to pick-up mail and payments. Like Day, Davis was also paid $15 million from 2013 to 2015. Frappier received $800,000 and Kelly $650,000 during the period.

PacNet founder Rosanne Day

Clients included companies that sent notifications to consumers intended to mislead them into believing they would receive a large amount of money, a valuable prize or specialized psychic services upon payment of a fee to the companies. Many victims were elderly or otherwise vulnerable.

“Many victims were inundated with fraudulent notifications and were defrauded multiple times. Some elderly victims spent hundreds of thousands of dollars responding to fraudulent notifications before a family member or a victim’s bank detected the fraud and worked to prevent additional losses.”

The indictment said the four executives had been made aware repeatedly that their clients were engaged in fraud. It said Day had been interviewed at least 13 different times since 1996. In 1998, a U.S. officer told her that PacNet was assisting a money laundering operation. Canadian police executed search warrants in 2001 and 207 at PacNet’s offices during investigations of mass mail clients.

The indictment also said they were aware on at least nine occasions between 2013 and 2015 that their clients had defrauded elderly people who suffered dementia and Alzheimer’s.

A statement on the PacNet website called the indictment “factually flawed.”

“PacNet and its employees intend to fight the charges and prove their innocence.”

“PacNet never knowingly processed payments for a fraudulent mailing. If a customer complained, PacNet refunded its money and charged the mailer. PacNet stands by its compliance program.”

PacNet is resisting B.C. government efforts to seize $15.5 million worth of real estate under civil forfeiture laws, including Day’s house on West 22nd in Vancouver’s Dunbar neighbourhood. The company was a member of the BC Liberal AdvantageBC tax rebate scheme cancelled by the NDP. 

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Bob Mackin During its last three full years