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CBC News: the fifth estate - Wednesdays at 9pm on CBC-TV, Fridays at 10pm ET/PT on CBC NewsworldMore about our showSubscribe to our e-mail newsletterContact UsMONEY, TRUTH & SPIN
WEDNESDAY FEBRUARY 8, 2006 Bookmark this page | E-mail to a friend
SCHREIBER AND MULRONEY
Karlheinze Schreiber Karlheinz Schreiber told the fifth estate that he gave Brian Mulroney $300,000 after Mulroney stepped down as Prime Minister.
While under oath, Brian Mulroney didn't mention he received $300,000 in cash from Karlheinz Schreiber, when the former Prime Minister was asked about his relationship with the German Canadian businessman after he left office.

Mulroney denies a relationship with Schreiber
The exchange between Mulroney and government lawyer Claude-Armand Sheppard took place in Montreal's Palais de Justice, during Mulroney's April 17, 1996 examination for discovery.

"Did you maintain contact with Mr. Schreiber after you ceased being Prime Minister?" Sheppard asked.

Mulroney 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 elaborated, "when he's on his way to Montreal, he called me and asked me and I say perhaps once or twice, if I could come to a cup…have a cup of coffee, with him at a hotel. I think I had one in the Queen Elizabeth Hotel with him. I had one in the coffee bar at the Queen Elizabeth Hotel."
(Listen to the April 17 testimony 9:06 or read the court transcript .pdf file)
(read more of Sheppard's interview with the fifth estate)

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The Queen Elizabeth Hotel meeting
What Mulroney did not mention was that Schreiber had given him an envelope with $100,000 in cash at the Queen Elizabeth Hotel. Or that Schreiber had given him another envelope filled with cash at another meeting in another Montreal hotel.
Mulroney with Schreiber Brian Mulroney and Karlheinz Schreiber in Germany with then-Chancellor Helmut Kohl.

Mulroney also did not mention a meeting in New York city where Schreiber gave him another envelope filled with money. He also did not mention a meeting he had with Schreiber at Harrington Lake, Quebec, just days after he resigned as Prime Minister.

Later in his examination Sheppard asks Mulroney "the Canadian government alleges that very substantial sums were paid to Mr. Schreiber by Airbus Industrie, and you didn't discuss with Mr. Schreiber whether it was true or not?"

Mulroney responded by saying, "what preoccupied me, inasmuch as I had never heard of the Airbus matter in my life, what preoccupied me, were the extraordinary falsehoods and injustices that involve me…and the fact that Mr. Schreiber may or may not have had any business dealings was not my principal…my principal preoccupation. I had never had any dealings with him."

Mulroney, a business associate
While Schreiber did provide hundreds of thousands of dollars in cash to Mulroney after he stepped down as Prime Minister, he told the fifth estate the two weren't close personal friends.

Schreiber and Mulroney Karlheinz Schreiber and Brian Mulroney.

See more photos.
"Well, I've never been to his home," said Schreiber. "He has never been to my home. We met in his office, at a building – at a restaurant or in a club or what, when he was with others."

When William Kaplan interviewed Brian Mulroney in 1997 for Presumed Guilty, his first book on the Airbus affair, Mulroney said his relationship with Schreiber was minimal.

"I knew Schreiber in a peripheral way," said Mulroney. "He was associated in my mind with the Alberta Progressive Conservatives. That was the limited extent to which I knew anything about him. I knew who he was, and that he had been involved in Bear Head."

Mulroney spokesperson Luc Lavoie said in 1999 in a taped phone conversation with the fifth estate it was a myth that Mulroney and Schreiber were friends. (visit the media page to listen to clips of Lavoie's conversations with fifth estate producer Harvey Cashore)

"They were not close. They were never close," said Lavoie. "Actually, they were not - it would be totally wrong to describe them as friends. Because they were not friends. They were acquaintances who had learned to know one another through this project that he was pushing using any means available."

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