The Globe and Mail - 21.10.2019

(nextflipdebug5) #1

MONDAY,OCTOBER21,2019 | THEGLOBEANDMAIL O NEWS | A


Mr. Scheer issued a similar warn-
ing about the rise of the Bloc
while campaigning in Vancouver,
suggesting a vote for the Bloc is
nothing short of a vote for a refer-
endum on separation.
Mr. Scheer’s Conservatives
have used considerable energy
during their campaign to try to
woo voters in Quebec, but polling
data from Nanos Research sug-
gested the Tories still trail the Lib-
erals and the Bloc in the prov-
ince.
Mr. Trudeau is seeking a sec-
ond mandate after his party se-
cured a sweeping majority in the
2015 election–afeatmade pos-
sible, in large part, because the
party picked up 40 seats in Que-
bec last time.
“Canadians need to come to-
gether,” Mr. Trudeau said. “I am a
proud grandson of B.C., but I’m
also a son of Quebec, and we are
going to fight hard together to fo-
cus on the big fight that we all
have against climate change and
building a better future for every-
one.”
Speaking to reporters during a
campaign stop in Laval, Que., the
Bloc’s Mr. Blanchet accused Mr.
Trudeau of misleading voters re-
garding his party. He said separat-
ism wasn’t a priority for his party,
nor was a referendum on the
matter imminent.
“I told my own people yester-
day night that they have to under-
stand this is not our mandate this
time. I am absolutely certain that
Mr. Trudeau knows it and that he
is purposely lying to the Cana-
dians,” Mr. Blanchet told report-
ers.
Mr. Singh also targeted the
Bloc on Sunday, articulating the
differences between New Demo-
crats and the party whose rise
could threaten the political fate
of many of his Quebec MPs.
The NDP currently has 14 seats
in Quebec. “I say to Quebeckers:
If you want somebody who’s go-
ing to fight climate crisis, it can’t
be the Bloc, because they’re not
going to be able to work with the


rest of Canada,” he said.
Mr. Singh also raised the pros-
pect of an election outcome that
results in aminoritygovernment
and said Canadians shouldn’t be
afraid of this.
Mr. Singh said Liberals “do not
deserve a majority ... because
they’ve let you down,” and that
Conservatives are not the option,
either.
He pointed to British Colum-
bia, where an NDP minority gov-
ernment led by John Horgan has
functioned since 2017 with the
support of the Green Party.
“I want to be the prime minis-
ter of Canada because I believe
New Democrats will make life
better for Canadians. We’re going
to fight the climate crisis like we
want to win it, but Premier Hor-
gan pointed out that minorities
are a good thing – yes they are,”
Mr. Singh said.
Mr. Singh had a significantly
lighter campaign schedule than
his opponents on the final day of
the election campaign ahead of
the vote Monday. The NDP was
instead focusing on getting the
vote out, rather than holding
more events, party staff said.
Mr. Scheer’s campaign stops
Sunday included stumping for
the Conservative candidate in the

Vancouver Granville riding held
by former justice minister Jody
Wilson-Raybould, the central fig-
ure in the SNC-Lavalin affair that
played out this year.
Ejected from the Liberal cau-
cus, Ms. Wilson-Raybould is run-
ning as an Independent.
Mr. Scheer told reporters on
Sunday he has considerable re-
spect for Ms. Wilson-Raybould,
but he is still hoping to send as
many Conservative MPs to Parlia-
ment as possible.
Mr. Scheer reiterated his mess-
age in Vancouver on Sunday
warning against an election out-
come that leads to an NDP-Liber-
al coalition, which he said Cana-
dians cannot afford. He urged
Canadians to give his Conserva-
tive Party a majority mandate in-
stead.
Mr. Scheer also made it clear
the political battleground in B.C.
will be critical to achieving this
goal. “B.C. will make the differ-
ence this election campaign,”
Mr. Scheer said during a brief stop
at a campaign office of candidate
Gabrielle Loren in West Vancouv-
er-Sunshine Coast-Sea to Sky
Country.
In a tight race, the get-out-the-
vote effort will make a difference.
James Smith, spokesperson for

the NDP, said on election day vol-
unteers will drive supporters to
the polls if necessary.
He said volunteers will canvas
houses, asking supporters if
they’ve voted and offering rides
to polling stations with addition-
al support from volunteers mak-
ing calls to supporters. He said
volunteers will also text support-
ers reminding them to vote.
The NDP also has a “triple your
vote” initiative where people are
encouraged to bring three friends
to the polls, Mr. Smith said.
Liberal campaign spokeman
Cameron Ahmad said the party is
continuing its effort to make sure
voters know where to cast their
ballots. That effort includes going
door to door to talk with voters
and driving people with mobility
challenges and seniors to the
polling stations.
Mr. Trudeau stopped at a mix
of Liberal and NDP-held ridings
across the Lower Mainland and
Vancouver Island on Sunday, tar-
geting seats his party hopes to
gain or maintain. He spent the
day reiterating the Liberal pitch
to voters that Canadians need
to elect a progressive govern-
ment, not a progressive opposi-
tion.
Green Party Leader Elizabeth

May stumped in Vancouver on
Sunday, where she made an an-
nouncement about electoral re-
form before campaigning on Van-
couver Island and her own riding
of Saanich-Gulf Islands.
People’s Party of Canada Lead-
er Maxime Bernier wrapped up
his campaign in his Quebec rid-
ing of Beauce.
The daily tracking survey from
Nanos Research on Sunday had
the Conservatives at 32.5 per cent
and the Liberals at 31.7 per cent.
The New Democrats were at 20.
per cent, the Greens at 6 per cent,
the Bloc Québécois at 7.2 per cent
and the People’s Party at 1.5 per
cent.
The poll was sponsored by The
Globe and Mail and CTV, with a
total of 739 decided voters sur-
veyed on Oct. 20. It has a margin
of error of 3.6 percentage points,
19 times out of 20. Respondents
were asked: “If a federal election
were held today, could you please
rank your top two current local
voting preferences?” A report on
the results, questions and metho-
dology for this and all surveys can
be found at tgam.ca/election-
polls.

Withareportfrom
TheCanadianPress

Election:Insuchatightrace,get-out-the-voteeffortwillmakeadifference


BlocQuébécoisLeaderYves-FrançoisBlanchet,left,seeninLongueuil,Que.,onSaturday,saysseparatismisn’tapriorityforhispartyandthatthere
arenoplanstoholdareferendumontheissue.People’sPartyofCanadaLeaderMaximeBernier,seeninSainte-Marie,Que.,onSaturday,wrapped
uphiscampaigninhisridingofBeauceonSunday.LEFT:GRAHAMHUGHES/THECANADIANPRESS;RIGHT:JACQUESBOISSINOT/THECANADIANPRESS

FROMA

Mr. Tse was born in Guangzhou in
1963, but immigrated to Canada
in 1988, joining the exodus from
Hong Kong ahead of its handover
to Chinese control.
It’s not clear when he received
a Canadian passport, but Mr. Tse
allegedly built the foundations of
his drug trade by importing hero-
in from the Golden Triangle to
North America. He was a Toronto-
based member of a Canadian
gang called the Big Circle Boys,
said Jeremy Douglas, an Ontario
man who began his career as a
Queen’s Park asset analyst, but
has for much of the past 20 years
led UNODC in Southeast Asia. Mr.
Douglas has spent the past three
years tracking Sam Gor through
the work of police in Australia,
Myanmar, China and elsewhere.
His office provided assistance
to Myanmar airport officials
when they detained Cai Jeng Ze, a
member of Sam Gor. UNODC
analysts also estimated the un-
derworld consortium manufac-
tures 300 tonnes of meth a year,
or enough for roughly 10 billion
doses of a powerful drug whose
use is soaring across Asia.
In part, that is because of the
purported savvy of Mr. Tse, who
Mr. Douglas sees as a business in-
novator, marshalling sophisticat-
ed chemistry and logistical skills
to not just feed a market, but help
grow its size. “He’s disrupted a
massive business and made it
even bigger. He’s done to the drug
business what Uber has done to
the transport business, or Netflix
has done to movies. This guy has
looked at it, seen an opportunity,
and took it and revolutionized it.”
At least some of that savvy was
honed in Canada, it is alleged,
where Big Circle Boys was estab-
lished around 1987, soon drawing
police attention – and grudging
admiration.
In 1992, Toronto Police consta-
ble Shu Tong Tarn, in court testi-
mony, described the group’s ori-
gins in the 1960s with Red Guards
in mainland China who escaped
to Hong Kong and turned military
prowess to crime. Some then took
advantage of Canada’s refugee
program to arrive in Canadian ci-
ties, where they specialized in
armed robbery, credit-card coun-
terfeiting and heroin trafficking.
“A great many of them are, in
my opinion, criminally brilliant,”
Toronto police detective Kenneth
Yates said in testimony to the U.S.
Senate permanent subcommittee
on investigations. At the time, the
Big Circle Boys were so successful


that, between 1990 and 1992, the
price of heroin in Toronto fell by
more than 40 per cent.
In the mid-1990s, a Canadian
court sentenced Chun Wai Ng,
who had been head of the Big Cir-
cle Boys to more than 13 years in
prison. His conduct was described
in a subsequent National Parole
Board panel report: “You had ex-
tensive connections in both Chi-
na and Thailand with the drug
trade. Enormous profits resulted
from these activities and you told
the Board today that you sent
money to your brother in China
to buy a coal mine and a taxi.”
Years later, the Big Circle Boys
were accused of helping Chinese
smuggler Lai Changxing transfer
assets to Canada, where he
sought refugee status, but was, af-
ter a heated dispute between Ot-
tawa and Beijing, sent back to
China in 2011, where he is current-
ly in jail.
By 2003, the Big Circle Boys
were “primarily responsible for
much of the exportation of
Southeast Asian heroin that en-
ters the United States,” according
to a report published that year by
the Federal Research Division of
the Library of Congress.
Mr. Tse, who served nine years
in a U.S. prison for drug trafficking
before his release in 2006, re-
mains a member of the Big Circle
Boys and a Canadian citizen, ac-
cording to Mr. Douglas, with fam-
ily still in Canada and a passport
issued in Hong Kong that is valid
through next year. But he also al-
legedly formed Sam Gor around
2010 and, through that group,
transformed meth into a volume
business. The group collapsed
prices and built legions of new
customers, using the protection
of armed ethnic groups in north-
ern Myanmar to build production
facilities that produce what may
be “the best meth ever,” Mr. Dou-
glas said.
In doing so, Mr. Tse allegedly
has helped to speed the narcotics
world away from plant-based
drugs (opium production in
Myanmar, as one example, has
plunged 70 per cent since 1996)
and into laboratory-made chem-
ical products, whose use has
surged in Australia, Japan, South
Korea and throughout Southeast
Asia. Meth seizures across east
and Southeast Asia more than tri-
pled between 2013 and 2018.
Mr. Tse’s suspected reach and
power were documented in a re-
cent Reuters report, which de-
scribed his travel on private jets,
the phalanx of Thai kickboxers
that guard him and his gambling

habits, which included an esti-
mated $88-million loss in a single
night in a Macau casino.
One of Sam Gor’s key break-
throughs: a product delivery
guarantee that replaced, at no
cost to the buyer, any seized
drugs. It’s a policy made possible
by the immense profitability of
turning chemicals into narcotics.
The UNODC estimates Sam Gor’s
annual gross revenue at between
US$3.8-billion and US$17.7-bil-
lion. At the upper end, that is
roughly equivalent to the world-
wide revenue of BMO Financial
Group last year. Drugs believed to
be from Sam Gor were seized in
South Korea last year.
It’s possible they will end up in
Canada, too, Mr. Douglas said.
The Big Circle Boys have played a
role in trafficking fentanyl, he
said.
But Canada, with its evolving
approach to fighting drugs and
organized crime, may also offer
an example of how to battle the
vast and lucrative underworld
networks Mr. Tse appears to have
built, according to Mr. Douglas.
Apart from producing a stag-
gering quantity of illicit drugs, Mr.
Tse has also “effectively rendered
the old war-on-drugs model use-
less,” Mr. Douglas said, making it
virtually impossible to “police
your way out of it.”
Instead, he said, what Sam Gor
has done is shone a new light on
the need for drug prevention and
treatment programs in countries,
particularly in Asia, that have
tended to use only heavy-handed
means to combat narcotics, using
“militarized policing, which
doesn’t work.”
The group’s rapid rise has also
exposedgovernance issues, Mr.
Douglas said, in particular a lack
of co-ordination between coun-
tries and armsof government,
which has allowed drugs to be
manufactured in one country, ex-
ported to another and the pro-
ceeds laundered in a third.
He pointed to Canada as one
example of how to address the
problem.
“What [it has] been trying to
do is trying to integrate the Cana-
dian government response,” Mr.
Douglas said. To battle a new era
of sophisticated drug manufac-
turers and traffickers, he said,
those involved with policing need
to work alongside border and fi-
nancial-crime authorities.
What Canada is doing, he said,
“shows that an integrated ap-
proach is necessary. That’s exact-
ly the type of model we’re trying
to push in Asia.”

Kingpin:Underworldconsortiummanufactures


about300tonnesofmethayear,analystsestimate


FROMA

In all three systems, the Crown corporation would continue
to set prices and process orders.
The industry consultation is part of a revamp of the Onta-
rio Cannabis Store, the OCRC’s provincial cannabis wholesal-
er. It comes after the first year of legalized cannabis across
Canada left licensed producers and retailers struggling to gain
market share from black-market players that continue to
thrive with low-cost, high-demand cannabis offerings.
Last month, the provincialgovernment ordered the OCS to
re-examine its business model. Ontario is lagging other prov-
inces in the rollout of cannabis stores, largely because of the
province’s decision to award a limited number of licences via
lottery. As it stands, the OCS acts as a wholesale middleman,
purchasing cannabis from producers, warehousing it and
selling it on to retailers at a mark-up. A common complaint is
that it buys product retailers and their customers don’t want,
leaving cannabis to grow stale in a government warehouse.
“The OCS is exploring a range of models that could increase
private-sector participation in the storage and transportation
of recreational cannabis to retail stores,” OCS spokesman Daf-
fyd Roderick said in response to questions about the survey.
Direct delivery would allow producers to ship cannabis di-
rectly to bricks-and-mortar retail stores. In a flow-through
system, growers would still ship to a distribution hub, but pur-
chase orders would originate with individual retailers and
product would be warehoused for fewer than 24 hours before
being sent along to stores.
Both models would bring producers more in line with re-
tailer demand, while reducing the OCS’s warehousing respon-
sibilities. However, the OCS would still set prices, list available
products and manage purchase orders coming in from retail-
ers. It would also continue to manage cannabis e-commerce.
Saskatchewan is the only province where cannabis distri-
bution is fully in the hands of the private sector. Both Alberta
and British Columbia, where private stores are allowed, still
use government-run warehouses for wholesale distribution.
The new proposals are already generating debate among
producers, who have varying capacity to ship to individual
stores and process individual orders. Keith Merker, chief exec-
utive officer of mid-sized producer WeedMD Inc., said that the
direct delivery system would disproportionately favour the
largest producers who have resources to establish complex
logistics chains. “I think we would potentially end up in a sit-
uation where you’ve got a Beer Store-like model which some
people refer to as a foreign-owned monopoly,” said Mr. Merk-
er, who advocates keeping the status quo, at least in the short
term.
There are 24 licensed cannabis stores open in Ontario, but
the government is in the process of licensing 50 more, and
there could eventually be hundreds of shops across the prov-
ince. “It makes it a little bit difficult to plan when you’ve got
flow-through orders coming [from retailers] that you may or
may not be able to satisfy, versus long-term planning with the
OCS where they have more understanding of the [cannabis
growing] cycle,” Mr. Merker said.
At the opposite end of the spectrum, Trevor Fencott, CEO of
retail chain Fire & Flower Inc., said the proposals do not go far
enough. Ontario should move to a wholly private model in
which producers and retailers set their own prices and deter-
mine product selection, he said.
“It will cost taxpayers no money, and I guarantee you we
will have better product selection, better prices and the con-
sumer is the one who wins, and the black market is the one
who loses,” he said.
He pointed to lower retail prices in Saskatchewan, where
Fire & Flower runs a distribution business alongside retail
stores. “We’ve never been short-shipped, we’ve always got the
product we want because we are experts in the field, and we
have not ordered product that doesn’t sell,” he said.

Distribution:Ontariolags


otherprovincesinrollout


ofcannabisstores


FROMA
Free download pdf