RCMP launches review of Mulroney-Schreiber affair

The RCMP said Tuesday it has launched a review of new allegations byKarlheinz Schreiber against Brian Mulroney —hours afterPrime Minister Stephen Harper announced there would be a formal public inquiry into the allegations.

A spokesman for the Mountiestoldthe Canadian Press thatthe force would review claims made by Schreiber against the former Progressive Conservative prime minister and decide whether there should be a formal investigation.

The review and inquiryfollow recent allegations by Schreiber that Mulroney was still prime minister when they sealed a controversial private business deal that would see Mulroney get $300,000 in cash for lobbying services.

"We are reviewing the information that was contained in Mr. Schreiber's sworn affidavit," said RCMP spokeswoman Nathalie Deschenes.

"If there's new information that comes to light to the RCMP, we would determine the appropriate course of action … If we would launch another investigation or anything like that, I doubt very much that that would be something we would confirm."

Earlier in the day, Harper said an inquiry into the allegations would be set in motion once he names an independent third-party adviser to recommend parameters for such an inquiry. He said the adviser would be named "shortly."

"The independent third party will give the government the appropriate terms of reference to indicate the way to proceed," Harper said in the House of Commons.

Mulroney comments on inquiry

In his first public comments since the full inquiry was announced, Mulroneysaid Tuesday eveningthat he is confident the inquiry's outcome will be positive for him.

"Twelve years ago I was falsely accused. I fought and won," said Mulroney, who was the keynote speaker at aToronto fundraiser for his alma mater, St. Francis Xavier Universityin Antigonish, N.S.

"Now it seems I have to fight again.… So be it. I'm going fight and win again."

Harper's announcement marks a change in policy from Friday, when he told reporters in Ottawa he would appoint an independent third party torecommend whether to proceed witha full public inquiry into the allegations. He would not at that time say he was calling for a public inquiry.

But thestatement from the Prime Minister's Office on Tuesday said: "I have decided to ask the third party to advise the government on appropriate terms of reference for a public inquiry."

After reviewing the material, the soon-to-be appointed third party would make recommendations on the nature and timing of the inquiry, the statement said.

"A public inquiry is a major step and one that should only be taken when it addresses Canadians' interest, not those of the various parties, whether Mr. Schreiber, Mr. Mulroney or political parties," the statement said.

Justice Minister Rob Nicholson said the pending inquiry "will be a true fact-finding mission and not a witch-hunt."

Mulroneyrequestsinquiry

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

And in the latest political bombshell, it was disclosed Tuesday that Schreiber had circulated copies of a letter outlining the allegations back in March, addressing one of the packages to the prime minister.

Why the Conservative government is only now discussing a public inquiry, seven months after that package arrived, was another subject opposition leaders leapt on.

"The information that triggered this action has been lying around for months now," Liberal Leader Stéphane Dion began. "How can it be that there was this foul-up?"

Harper countered that Schreiber was the subject of ongoing extradition proceedings, and that the prime minister "is never going to get involved in reading correspondence on that matter from such an individual." Schreiber, who is currently in a Toronto jail cell, faces fraud, bribery and tax evasion charges in Germany.

'Conspiracy theory'

The prime minister also dismissed as a "conspiracy theory" suggestions from Liberal MP Mark Holland that the Conservatives knew they had the letters but werecovering up the fact.

Harper said he never saw the letters, because it's not the job of the prime minister to get involved in Schreiber's attempts to avoid extradition to Germany.

"I have to say, I have no relationship with Karlheinz Schreiber and I certainly don't intend to become his pen pal now," Harper 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.

The latter allegation is similar to the accusations that sparked Mulroney's 1995 lawsuit against the federal government, and resulted in the former prime minister receiving an apology and a settlement of $2.1 million in 1997.

None of the statements in Schreiber's affidavit has been proven in court.