Former prime minister Brian Mulroney spoke publicly Tuesday night for the first time since allegations concerning his dealings with businessman Karlheinz Schreiber surfaced last month, insisting he has nothing to hide.

Former prime minister Brian Mulroney gestures as he speaks in Toronto Tuesday night, saying he welcomes a public inquiry.
(Adrian Wyld/Canadian Press)

"I want to tell you here tonight that I, Martin Brian Mulroney, 18th prime minister of Canada, will be there before the royal commission with bells on, because I've done nothing wrong and I have absolutely nothing to hide," he said at a Toronto fundraiser for his alma mater, St. Francis Xavier University in Nova Scotia. He was greeted by a standing ovation from business people and government officials.

Mulroney spoke just hours after Prime Minister Stephen Harper announced there would be a formal public inquiry into the allegations and the RCMP said it had launched a review.

Mulroney said he welcomes the opportunity to testify at the inquiry and to hear testimony from those who have muddied his name.

"Put them under the spotlight and force them to testify under oath, so that their conduct and their motives can be fully analyzed," he said.

The allegations against Mulroney came to a head on Thursday when Schreiber filed an affidavit in Ontario's Superior Court alleging that Schreiber negotiated a $300,000 lobbying deal with Mulroney on June 23, 1993 — two days before Mulroney stepped down as prime minister.

The affidavit also claimed a Mulroney adviser asked Schreiber to transfer funds in connection with Air Canada's 1988 purchase of Airbus planes to a Mulroney lawyer based in Switzerland. None of the statements in Schreiber's affidavit has been proven in court.

On Monday night, Mulroney took the unusual step of requesting a full public inquiry into his own actions to give him the opportunity to clear his name.

"Twelve years ago I was falsely accused. I fought and won. Now it seems I'm going to have to fight again," Mulroney said at Tuesday's fundraiser. "I'm not pleased by this, but so be it. I'm going fight and win again."

Mulroney was referring to his 1995 lawsuit against the federal government. He received a $2.1-million settlement after his name was publicly mentioned in connection with a 1995 investigation into the sale of Airbus jets to Air Canada.