German-Canadian arms dealer Karlheinz Schreiber chuckles while testifying at the Oliphant Commission in Ottawa April 15, 2009. (Blair Gable/Reuters)

The head of a public inquiry into Karlheinz Schreiber's dealings with former prime minister Brian Mulroney has recommended the German-Canadian businessman remain in Canada until the inquiry is completed later this month.

Justice Jeffrey Oliphant told the inquiry in Ottawa on Wednesday he has no power to order that Schreiber remain in the country, but it would be a "travesty of justice" if Schreiber is booted from Canada before the commission's work is finished.

Oliphant urged Justice Minister Rob Nicholson to delay extradition to Germany, where Schreiber is wanted on charges of fraud, bribery and tax evasion.

Oliphant was responding to an application from Richard Auger, Schreiber's lawyer at the inquiry, seeking an order, direction or recommendation that his client remain available in Ottawa based on his status as a party to the inquiry.

If Schreiber were to be removed from Canada, Oliphant said his ability to communicate with his counsel would be "diminished, if not destroyed.”

"Out of an abundance of fairness … it would be a travesty to remove Mr. Schreiber from Canada while the commission is still at work," Oliphant told the hearing.

"I hope the minister will see fit to accept the recommendation I have made."

Nicholson ruled last year that Schreiber could stay in the country long enough to participate in the Oliphant inquiry. But it's never been clear whether that meant until the end of the judge's work or just until Schreiber finishes his own testimony.

Yannick Landry, the lawyer representing the Justice Ministry at the inquiry, told the inquiry on Wednesday he had no information on whether Nicholson intended to push for Schreiber's extradition before the inquiry's hearings wrapped up.

The hearing before Oliphant was suspended for a week on Wednesday and is expected to come to a close on June 22 or 23. The deadline for Oliphant's report to the federal government is Dec. 31.

With files from The Canadian Press