UPDATE 1-Canadian PM still puzzled by minister's resignation

UPDATE 1-Canadian PM still puzzled by minister's resignation

Canadian Prime Minister Justin Trudeau on Thursday said he was still puzzled by the decision of former veterans affairs minister Jody Wilson-Raybould to quit last week, even though she addressed the Cabinet on Tuesday.

Trudeau is battling a crisis that centers on Wilson-Raybould and allegations that his officials pressured her last year to ensure construction company SNC-Lavalin Group Inc avoided a corruption and bribery trial when she was justice minister. Trudeau, speaking to reporters in Atlantic Canada, did not answer directly when asked about a report in the Globe and Mail newspaper on Thursday alleging Wilson-Raybould told the Cabinet she had come under improper pressure from officials.

"I continue to be surprised by Jody Wilson-Raybould's decision. ... This is not a decision that remains clear to me," he told a televised news conference in Dartmouth, Nova Scotia. The issue could threaten the ruling Liberals' chances in an election this October. Trudeau aide Gerald Butts, a major architect of the Liberals' surprise victory in October 2015, quit on Monday while insisting he had done nothing wrong.

Trudeau on Wednesday calmed restless legislators at a meeting to discuss the two resignations but sidestepped questions about how he planned to handle the crisis, party sources said. (Reporting by David Ljunggren; editing by Jonathan Oatis)

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