NDP liquor critic Shane Simpson has called for the BC Liberal government to immediately halt the privatization of Liquor Distribution Branch (LDB) warehousing and distribution.
At a July 12 news conference, Simpson revealed 38 pages obtained via Freedom of Information that show Exel Logistics was the only company pushing for privatization. (See “Logistics giant targets lucrative LDB contract” – BIV issue 1176; May 8-14.)
Exel hired Liberal-connected lobbyists Mark Jiles and Patrick Kinsella to seek the deal. Exel vice-president Scott Lyons met August 25, 2011, at the premier’s Vancouver Office to propose privatization to then-liquor minister Shirley Bond and LDB chief financial officer Roger Bissoondatt. That meeting also included Exel lobbyist Rob Madore, the former operations director of Connect Logistics, the Exel-owned company that holds the Alberta liquor distribution monopoly. He registered to lobby in B.C. on April 1, 2010, and is cited in Exel’s October 6, 2009, “Project Last Spike” internal memo in a chart under the heading Pursuit Plan and Owners
The memo also states: “Ensure LDB provides correct costing information to Rich Coleman Minister Responsible for Liquor and Gaming. Rob Madore is meeting with Roger Bissoondatt, CFO of the BCLDB on Oct. 13, 09.”
It is not known whether Bissoondatt met with Madore or what was discussed if he did. Madore declined comment, and Bissoondatt did not respond to interview requests. Bissoondatt became acting LDB general manager after Jay Chambers stepped down as general manager on July 4 to become president of the Motor Vehicle Sales Authority of B.C.
Exel, ContainerWorld, Hillebrand-Westlink, Kuehne + Nagel, Metro Supply Chain Group and Schenker of Canada submitted bids by the June 29 deadline to take over the LDB logistics contract. Between one and three are expected to be shortlisted July 20. Coleman has not responded to repeated BIV interview requests.
But Citizens’ Services Minister Margaret MacDiarmid, who is responsible for government-wide procurement, told BIV that she stands by the integrity of the process.
She downplayed the “Project Last Spike” memo, in which Exel pondered using its relationship with Coleman to influence the writing of the RFP.
“Just because people say things doesn’t make it so,” MacDiarmid said. “People can make assumptions about how they’re going to be able to influence processes, and so on; people can say all kinds of things.”
MacDiarmid and the rest of cabinet are target contacts on Madore’s lobbyist registration.
Kinsella de-registered on March 30, a month before the RFP was published. MacDiarmid said she has informally met Kinsella, a resident of her constituency.
“I did call him when I was campaigning because I wanted to get his vote to get the nomination for Vancouver-Fairview, but I’ve never had a meeting on this topic about the RFP or anything related to this with any of the proponents.” •
