Allegations B.C. prioritized gaming revenue over money laundering are 'offensive,' former minister says

A former B.C. finance ministerhas denied "offensive" allegationsthe government deliberatelyignored the growing issue of money laundering in casinosbecause they were more concerned about preservinggaming revenue.

Mike de Jong told the CulleninquiryFriday he believed the province made "serious attempts" to better understand and address the organized crimewhile he was responsibleforthe gaming portfolio from 2013 to 2017.

"It has been very frustrating to, candidly, hear commentary that the government was disinterested in the subjector the minister responsible was disinterested in the subject because fiscal considerations took precedence. That's just not true," he said.

"I never saw anything to suggest that people weren't interested in addressing this or were trying to turn a blind eye. I have had people on the phone in the last two years in tears because of the suggestion that that's what happened," he said.

De Jong is among anumber of senior B.C. politicians to appear this week before the Cullen Commission, which is investigating the scope of money laundering in the province and how officials can better address the issue in future.

The public inquiry has heard gaming investigators suspected for years gangs were offeringlarge cash loans to high-rolling gamblersas part of money laundering schemes in casinos across the Lower Mainland.

It has also heardallegations the province particularly de Jong's predecessor, former minister responsible Rich Colemanwas well aware of the problembut was more concerned with gaming revenue thantackling organized crime.

The British Columbia Lottery Corporation (BCLC)typically contributes around $1.4 billion to provincial revenue, a portion of whichis distributed to charities, local governments and Indigenous communities.

De Jong said he did keep a close eye onBCLCrevenue during his time as finance minister, but not because of backwards priorities.

"It was important to know ...what [BCLC's] revenue projections were and, yes, I was pretty hard-assed about the expenses," he told the commission's lawyer, pausing to apologize for the phrase.

"But...I was harsh with every branch of government about managing expenses to the extent possible," he continued.

Seriousness of issue 'crystallized' in 2015: minister

De Jong said the enormity of the money laundering problem "crystallized" in his mind during a meeting with BCLC and its regulator the Gaming Policy and Enforcement Branch, orGPEB in the fall of 2015.

It's been established BCLC and GPEBhad a testy relationship filled with infighting. But during that meeting, de Jong said, the teams saw eye-to-eye andspoke "fairly passionately" about the need for police intervention in casinos.

"That clearly made a significant impression on me at the time," de Jong said.

De Jong raised the concerns with then-premier Christy Clark.The Joint Illegal Gaming Investigation Team (JIGIT) a division of B.C.'s anti-gang police agency was subsequently launched.

In her own testimony Tuesday, Clark saidthe alarm from De Jong was the first she'd heard of the rise in money laundering from within her government. By then, reports of suspicious cash transactions were at "an all-time high."

Interim Liberal Leader Shirley Bond, another former minister who was responsible for gaming in2011, testified Thursday she implemented nine recommendations from a government anti-money laundering report, but set aside the 10th and final recommendation:thetask force.

WATCH |Documents obtained by CBCNews in 2011 showed seniorRCMP investigators warned the province about money laundering in B.C. casinos:

B.C. casino warnings

13 years ago

Duration 3:19

Top-level RCMP officials had warned the solicitor general's office about money laundering at B.C. casinos, the CBC's Eric Rankin reports

More cabinet ministers next week

Former minister Colemanand former solicitor general Kash Heed are scheduled to appearbefore the inquiry next week. Attorney General David Ebywill also testify.

The government launched the Cullen Commission in 2019 after three reports detailed how hundreds of millions of dollars in dirty cash had distorted B.C.'s luxury vehicle, real estate and gaming sectors over a decade and a half.

Onereport in 2018 saidcasinos had become "laundromats" for proceeds of crime,with more than $100 millionlikely cleaned in B.C. since the early 2000s.

The Cullen Commission's final report is due Dec. 15.