Karlheinz Schreiber told a parliamentary ethics committee on Tuesday that former prime minister Brian Mulroney did not receive any money in connection with the Airbus affair.
He said that allegations of Mulroney's involvement in securing an Air Canada contract for the purchase of planes from the European company were laughable.
But Schreiber also told the committee that Mulroney was still a Member of Parliament when he gave him the first of three $100,000 payments. Schreiber said Tuesday that the initial payment came after Mulroney had stepped down as prime minister, although the two discussed future lobbying activities by Mulroney months earlier before he stepped down as PM.
Schreiber, freed on bail by the Ontario Court of Appeal, told the Commons committee Tuesday that he made a deal on June 23, 1993, to work with then-prime minister Brian Mulroney on a future project -- but no financial compensation was discussed.
The ethics committee is probing Schreiber's past dealings with Mulroney -- including $300,000 in cash Mulroney received after leaving office.
Mulroney has never said why he received the money in cash. He did not declare the money in his tax returns the year he received the money, although he did do so several years later. Mulroney has denied all allegations of wrongdoing, and none of the accusations against the former prime minister has been proven in court.
Schreiber said he met with Mulroney at Harrington Lake, the prime minister's summer home, on June 23, 1993 -- two days before Mulroney left office.
He said Mulroney agreed at that meeting to work with him after leaving office.
Schreiber said he told Mulroney that he had funds available for the Bear Head project -- a plan to construct a factory to build light-armoured vehicles in Canada.
Mulroney was supposed to help Schreiber lobby to get the plant set up in Halifax, he said.
"It was a principle agreement that we work together but at that day it was completely unfair for me to say anything else -- we did not speak about money," Schreiber told the committee.
Schreiber started his testimony with a rambling statement that included details and letters pertaining to the deal to sell Airbus planes to Air Canada in the late 1980s.
Schreiber also set off another bombshell by dropping the name of another prominent politician. He said that he donated $30,000 to Jean Charest's Tory leadership campaign in 1993. The money was allegedly given in cash to Charest's brother.
Charest said that his brother recalls that the donation was only $10,000. He also said that it was perfectly legal. The Quebec premier also noted that although Schreiber claims the two have met in the past, such contact was minimal, if it occurred at all.
"I have no recollection of ever meeting Mr. Schreiber," Charest said.
"I don't know him, and never did I act on any of the files that he was interested in."
Schreiber, who has a reputation for keeping meticulous records, provided the committee with binders filled with documents on Airbus, Mulroney, and his correspondence with Prime Minister Stephen Harper.
Starting with apology
Ethics committee chairman Paul Szabo began proceedings Tuesday by apologizing to Schreiber because he was not provided with a belt when he was escorted home last week to look at documents.
As a result his pants fell down as he walked to his doorstep.
Last Thursday, in his first appearance before the committee, Schreiber said that he was not given enough time to prepare.
However, Schreiber surprised the committee by saying the $300,000 in cash payments was supposed to be $500,000, but the former prime minister didn't do the work that was expected of him.
Meanwhile, the Ontario Court of Appeal agreed Tuesday to release Schreiber on $1.31-million bail.
Schreiber is facing a variety of tax and fraud accusations in Germany and has been fighting an extradition order since 2004.
Last Friday, the Ontario Court of Appeal temporarily stayed the extradition order to Germany against Schreiber until the Supreme Court of Canada decides whether it will hear an appeal in the case.
His bail conditions require him to update authorities daily on his whereabouts. He must also surrender to a Toronto detention centre the day before the Supreme Court releases its decision on if it will hear the case.
With files from The Canadian Press
