Winnipeg Free Press

Winnipeg Free Press (Newspaper) - December 14, 2007, Winnipeg, Manitoba By Jack Aubry o Ottawa former prime minister Brian Mulroney said accepting $ 225,000 in Cash from Karlheinz Schreiber was a serious error in judgment but vehemently denied any wrongdoing including tax evasion or accepting kickbacks in his International consulting Deal with the German Canadian businessman. My second biggest mistake in life for which i have no one to blame but myself is having accepted payments in Cash from Karlheinz Schreiber for a mandate he gave me after i left office Mulroney said thursday appearing before the commons ethics committee. My biggest mistake in life by far was Ever agreeing to be introduced to Karlheinz Schreiber in the first place. During his testimony Mulroney attacked Schr Eibers credibility pointing out contradictions in his recent statements compared to what he has said in court appearances. He was accompanied by his wife Mila and his four children. Mulroney said he had no documents to Back up his version of his Cash dealings with Schreiber and that the affair comes Down to one mans word against the other. He said at the time of the 1993 and 1994 payments Schreiber was a businessman without scandal. Russia broken As an example of services he rendered Mulroney said he lobbied former russian president Boris Yeltsin on behalf of Thyssen industries and Schreiber to buy armoured cars but talks came to end when Yeltsin said his country was broke. Towards the end of the hearing Mulroney seemed to question the need for the Public inquiry already called by prime minister Stephen Harper after the former prime minister and Schreiber asked for one in november. When later asked conservative my Russ Hiebert who Heads the governments Side of the committee bluntly said thatus or. Mulroney is opinion. He said the government is awaiting the recommendations of University of Waterloo president David Johnston on the terms of reference for the Public inquiry due Jan. 11. Mulroney said he accepted three Cash payments of $ 75,000 from Schreiber not $ 100,000 As stated by the businessman starting in August 1993 when he was still an my. He denied Schr Eibers allegation that he reached his agreement to work for Thyssen at the prime ministers residence at Harrington Lake in june 1993, when he was still prime minister. Mulroney said All of the allegations made by Schreiber in a november 2007 affidavit Are completely false. He then added he will say anything sign anything and do anything to avoid extradition to Germany where he is wanted on tax evasion bribery and fraud charges. This is the Man who a week before had signed an affidavit loaded Down with falsehoods like a Christmas tree on dec. 25. That was his get out of jail card. He created a frenzy with his two Media allies and Here we All Are today said Mulroney. He also told the committee that Schr Eibers plan has worked out Well. Hers got what he wanted. Hers sitting in his mansion Over in Rockcliffe chuckling. On the specifics of his dealings with Schreiber Mulroney said he entered into an agreement with Schreiber on aug. 27, 1993, at a Mirabel hotel that would see him provide International representation and lobby leaders on behalf of Schreiber and Thyssen. Stressing the Deal was outside of Domestic business Mulroney said he hesitated to take an envelope stuffed with $ 1,000 Bills but Schreiber told him that he Only dealt in Cash. He told the committee that he placed the Cash and a subsequent payment received at the Queen Elizabeth hotel in Montreal in a Safe at his Home and Only withdrew Money from the retainer to cover expenses. A third payment which was accepted in a new York hotel was placed in a safety Deposit Box at an american Bank he said. In one Sharp Exchange nip my Pat Martin flatly rejected Mulroney is explanation ism not calling you a liar or. Mulroney but i want everyone Here to know that i dont believe you. Mulroney never recorded the $ 225,000 on his income taxes until Schreiber was arrested in 1999 six years after the first payment. I thought the Best Way to Deal with this situation was to declare the entire amount As income although i had Only used it for expenses absorbing the expenses myself and compensating myself for the fees to which i was entitled Mulroney said. He denied Schr Eibers major allegations saying he never received any Money in connection with air Canadas Purchase of 34 Airbus planes in 1988, or Money from Thyssen or any other Schreiber client while he was prime minister. Mulroney further attacked Schr Eibers credibility by bringing up an affidavit the businessman filed in the Federal court of Canada in March 2007 you dont have this one. Take a look at it its interesting said Mulroney. He said it confirms that Mulroney and Schreiber did not enter into an agreement until after he left office. He then held up the two affidavits to the maps and asked which one of these is perjury they cant both be the truth. When the maps asked him How they were supposed to know which to believe Mulroney joked if you can figure that out you re going to heaven. Can West news service the Canadian press top news Winnipeg free 14, 2007 Winnipeg repress. 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Mulroney at the committee my second biggest mistake in life for which i have no one to blame but myself is having accepted payments in Cash from Karlheinz Schreiber for a mandate he gave me after i left office. Lavoie november 2007 so when he left he had no Money. He was optimistic he was going Back to his old Law firm but there is a difference Between optimistic and having the Revenue. So the Man kind of i say anguished but worried about How the future would unfold. Mulroney at the committee did i have a ton of Money no. Was i broke no. I had a wife and four Young children and my late Mother to support. But i had been Able to do it since my fathers death and without too much difficulty and i Felt confident that i could do it again. Lavoie 2003 explains that Mulroney was hired to assist Schreiber with his pasta business and to arrange a number of introductions and meetings with International business executives. Mulroney at committee said the agreement was to promote International sales of a Light armoured vehicle made by Thyssen industries. Schreiber then indicated that it would be very helpful to Thyssen to have a former prime minister assist in the International promotion of their peacekeeping vehicles. Mulroney in 1996, was questioned during his libel suit Over Airbus allegations about his contacts with Schreiber after you ceased being prime minister. He replied Well from time to time not very often. When he was going through Montreal he would give me a Call. We would have a cup of Coffee i think once or twice. Mulroney at committee much has been made in the Media of an alleged statement by me that i never had dealings with or. Schreiber a As amounting to a denial of the business dealings i had with him after i had left Public life. This report of my testimony is clearly false As even or. Schreiber himself made absolutely Clear last week. Mulroney november 2007 the Only solution is for the government to launch a full fledged Public commission of inquiry. Mulroney at the committee i think its now Clear that weave got an entirely different situation on our hands. The Canadian press Mulroney denies wrongdoing said meeting Schreiber was his worst mistake i thought the Best Way to Deal with this situation was to declare the entire amount As income although i had Only used it for expenses absorbing the expenses myself and compensating myself for the fees to which i was entitled Brian Mulroney explaining Why he decided to pay income tax Only after Schreiber was arrested in 1999 Sean Kilpatrick / the Canadian press ;