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Police believe two Liberal operatives, including one of Premier Kathleen Wynnes top aides, broke the law by offering a former candidate a government job in exchange for dropping out of the Sudbury by-election race.

The revelation, in a court document obtained by The Globe and Mail on election day, capped a dramatic campaign that included everything from a high-profile party defection to tape-recorded conversations that are now at the centre of a criminal probe.

Despite the scandal, the Liberals pulled off a win. Liberal Glenn Thibeault, who defected from the federal New Democrats to run for the provincial Liberals, beat out NDP candidate Suzanne Shawbonquit by over 1,000 votes.

Shortly before 11 p.m., Ms. Wynne and Mr. Thibeault took the stage in a hotel atrium to the strains of AC/DC's Thunderstruck.

"There was a lot of negativity in this campaign, and you saw through that," she told hundreds of cheering Liberal faithful. "With your optimism, you saw the positivity. You ran a terrific campaign."

But it was Independent candidate Andrew Olivier who placed a distant third who was at the heart of the by-election drama, which will hang over the party even after the ballots are counted.

The Ontario Provincial Police investigation turns on conversations Mr. Olivier had last December with Patricia Sorbara, Ms. Wynnes deputy chief of staff, and Liberal fundraiser Gerry Lougheed.

At the time, Mr. Olivier was seeking the Liberal nomination. But Ms. Wynne instead wanted then-federal MPP Mr. Thibeault to get the nomination unopposed. Both Ms. Sorbara and Mr. Lougheed tried to persuade Mr. Olivier to drop out.

Mr. Olivier, who is quadriplegic and records conversations in lieu of taking notes, made tapes of his discussions. In those recordings, Ms. Sorbara and Mr. Lougheed dangled possible job options for Mr. Olivier. Ms. Sorbara cited posts as a constituency assistant, or an appointment to a government commission studying accessibility issues.

In an information to obtain, a police document sworn before a judge to get a production order for originals of Mr. Oliviers tapes, police allege Ms. Sorbara and Mr. Lougheed broke federal corruption laws by negotiating appointments, citing section 125 of the Criminal Code.

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Liberals win Sudbury by-election despite allegation party broke the law with job offer

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Synopsis | Whigs And Liberals By J. W. Burrow - Video

Libreal Leader Justin Trudeau asksa question during question period in the House of Commons on Parliament Hill in Ottawa on Wednesday, Feb. 4, 2015. THE CANADIAN PRESS/Sean Kilpatrick

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By Joan Bryden, The Canadian Press

OTTAWA - Justin Trudeau's Liberals will vote in favour of the government's new anti-terrorism bill, despite concerns that it provides no mechanisms to guard against abuse of the new powers it would give security agencies.

If the Conservative government refuses to amend the bill to address those concerns, Trudeau says Liberals will still support it but will fix the flaws should they win the coming election.

"The current government can accept that Canadians want greater oversight and accountability, or it will give us the opportunity to offer that directly to Canadians in the upcoming election campaign," the Liberal leader said Wednesday.

Liberals want the bill amended to provide for parliamentary oversight of security agencies and a mechanism to require mandatory review of the legislation in the years to come.

The bill would give the Canadian Security Intelligence Service more power to thwart suspected terrorists' travel plans, disrupt bank transactions and covertly interfere with radical websites.

It would also make it easier for the RCMP to obtain a peace bond to restrict the movements of suspects and extend the amount of time they can be kept in preventative arrest and detention.

And it would create a new criminal offence: encouraging someone to carry out a terrorist attack.

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Liberals to support anti-terrorism bill

OTTAWA Justin Trudeaus Liberals will vote in favour of the governments new anti-terrorism bill, despite concerns that it provides no mechanisms to guard against abuse of the new powers it would give security agencies.

If the Conservative government refuses to amend the bill to address those concerns, Trudeau says Liberals will still support it but will fix the flaws should they win the coming election.

The current government can accept that Canadians want greater oversight and accountability, or it will give us the opportunity to offer that directly to Canadians in the upcoming election campaign, the Liberal leader said Wednesday.

Liberals want the bill amended to provide for parliamentary oversight of security agencies and a mechanism to require mandatory review of the legislation in the years to come.

The bill would give the Canadian Security Intelligence Service more power to thwart suspected terrorists travel plans, disrupt bank transactions and covertly interfere with radical websites.

It would also make it easier for the RCMP to obtain a peace bond to restrict the movements of suspects and extend the amount of time they can be kept in preventative arrest and detention.

And it would create a new criminal offence: encouraging someone to carry out a terrorist attack.

Trudeau said Liberals welcome measures to build on the powers of preventative arrest, expand the no-fly regime and enhance co-ordinated information sharing among government departments and agencies.

But he added: I believe that when a government asks its citizens to give up even a small portion of their liberty, it is that governments highest responsibility to guarantee that its new powers will not be abused.

It is not enough for a government to say simply, Trust us. That trust must be earned. It must be checked and it must be renewed.

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Federal Liberals back terror bill but seek changes

Malcolm Turnbull meets locals on the Central Coast after a 'Politics in the Pub' forum. Photo: Wolter Peeters

Spooked Liberals in NSW are warning the federal leadership crisis threatens to derail their re-election campaign, as a federal Coalition minister conceded on Thursday that a spill motion against Prime Minister Tony Abbott is now likely.

Trade Minister Andrew Robb also joined the fray warning the government would look like political "amateurs" if rebel MPs force a leadership spill.

Malcolm Turnbull taking questions at the Dam Hotel in Wyong on Thursday night. Photo: Wolter Peeters

But Fairfax Media has learned a number of federal MPs are under pressure from state colleagues to line up behind Malcolm Turnbull and force a change, and to get it done quickly.

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On Thursday night, Mr Abbott said a leadership vote would be a "distraction" and insisted he trusted Mr Turnbull and deputy Liberal leader Julie Bishop.

Fairfax Media has spoken to four NSW Baird government MPs who have all taken concerns to federal counterparts.

Their concern, fed by state-based polling, is that the "Abbott factor" could cost 10 to 20 seats in March.

That could be restricted to a loss of 5 to10 without Mr Abbott's drag. The extreme unpopularity of the Abbott government was a factor in the wipeouts of the Newman Queensland government and the Napthine fovernment in Victoria.

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NSW state Liberals urge federal counterparts to replace Tony Abbott