Schreiber’s last stand – for now.

by kadyomalley on Friday, April 17, 2009 8:02am - 76 Comments

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After three days on the stand, we’re still waiting for those seven scandals that the witness promised to deliver as he headed into the hearing room last Tuesday, but keep in mind that the final round of questions goes to Schreiber Schtrikeforce lead counsel Richard Auger, who will likely make every effort to ensure that Schreiber gets an opportunity to explain all those inconsistencies and contradictions that have cropped up between his past and present testimony.

Before Auger takes the floor, however, Team Mulroney’s Guy Pratte will get one more chance to grill his client’s former international business associate, and Robert Houston, who represents Fred Doucet, gave notice yesterday afternoon that he plans to spend a couple of hours on this witness — and then there’s Judge Oliphant himself, who may have a few as yet unanswered questions as well.

9:10:11 AM
You know you’re at the Oliphant Inquiry when the security guards are trading theories about Schreiber’s testimony between laments over the previous night’s hockey game.


Welcome back to Camp Oliphant – which is holding a rare Friday hearing in order to make up for the holiday weekend, and where the media contingent is holding up surprisingly well, considering. Then again, with Auger up later today, there’s always the possibility of an afternoon surprise outbreak of news. Such is what we reporters live for, after all.

9:30:03 AM
No good mornings, no cordial inquiries into the quality of his belated nap last night — it’s right back to business for Pratte, who directs Schreiber back to the binder that covers the fifth estate lawsuit. Schreiber, however, has other ideas: He interrupts Pratte to apologize to him for being so very tired yesterday afternoon – he is, after all, 75 years old, he reminds the comparatively boyish lawyer, and then tries to go off on an entirely different tangent, much to Pratte’s surprise. Schreiber wants to explain how, in his questions, Pratte is attempting to exactly the same thing as he tried at the Ethics committee – what, exactly, is not clear, and as Pratte points out, he wasn’t actually a witness at that particular committee. The judge eventually blows the whistle – figuratively speaking, although that’s not a bad idea for future hearings – and reminds the witness that despite the best efforts of the commission to inveigle parliamentary agreement, those committee proceedings are privileged, so Schreiber – and everyone else – might want to stay away from testimony that transpired therein.

Auger pipes up to point out that the questions are also bordering on areas covered by solicitor-client privilege, but Oliphant assures him that Pratte is an experienced lawyer, and knows what he can and can’t ask; if he doesn’t, Auger can always intervene.

9:37:52 AM
Now that the opening battlelines have been drawn, it’s back to that “letter of comfort” that Mulroney’s lawyer requested – “assurances of comfort”. Schreiber says that *his* recollection was that he had been asked to deliver an affidavit, but Pratte reminds him that this is – or was – his lawyer’s account – and he never uses the word “affidavit”, only “letter”.

9:40:51 AM
Schreiber is definitely trying to push Pratte’s buttons – he once again started to point out something that was said at Ethics, which turned out to have the perhaps unanticipated side effect of giving Oliphant the opportunity to voice a little of the frustration that he – and the commission – clearly feel over being deprived of the testimony at Ethics. He reminds Schreiber that his lawyers did ask Parliament to waive privilege, but were rebuffed, and notes that if they’d challenged the refusal in federal court, they’d likely still be mired in uncertainty. Schreiber chuckles in his most avuncular manner before pointing out that the committee was *also* frustrated during its work – they weren’t able to get all the documents from the RCMP, after all.

9:47:51 AM
Pratte gets back to the fifth estate – yes, I know, I think we’re all wondering just how CBC can best exploit this all this indirect earned media for upcoming promos – and Schreiber’s extradiction woes, as explained to/by Linden McIntyre, during which he described a “lavish lunch” at the Savoy with Brian Mulroney — who was not, Pratte hurries to establish, there just to see Schreiber, but who invited him to dine in his suite.

Did Schreiber know who *paid* for the lunch, Pratte wonders. It wasn’t him, after all, and apparently, it was a pressing enough question for Schreiber that he wrote to the manager of the hotel in question to find out.

9:52:47 AM
Okay, so somehow, the fact that Schreiber wrote to the hotel to get confirmation that he – Schreiber – didn’t pay for the lunch in question, even though he *knew* who had picked up the tab. Although actually, neither he nor Pratte has come out and said that it was the former PM who footed the bill, but I guess that’s what we’re supposed to conclude, since in this case, Pratte claims that the whole letter-writing ruse was to embarrass Mulroney by going public – via the CBC, of course – with the sordid details of what Schreiber describes as a “2,000 franc salmon lunch”. Okay, that does sound rather extravagant for three people.

10:02:22 AM
You know, Pratte really has to work on maintaining control of his cross examination; Schreiber is definitely getting bolder about interrupting him, and the judge seems to be fairly noninterventionalist as far as curtailing his increasingly frequent pushback to lines of questioning that he finds unfair. (That’s been true with past witnesses as well, for the record.)

Also, I’m not sure why Pratte thinks that the fact that Schreiber has been calling for a public inquiry for more than a decade is necessarily a fatal indictment of his character and credibility, since it’s not as though it was a particularly closely kept secret — his desire for a full public airing of the whole saga weaves in and out of his scrawling correspondence with prime ministers past and present — and it doesn’t make him seem any more sinister.

10:07:09 AM
“Speaking of misleading,” Pratte begins, his patience clearly but a distant memory, let’s move to another affidavit, in which Schreiber claimed that Mulroney told him that he was willing to meet with Harper, which he actually found out from MacKay. A minor point, but one that attracts the judge’s interest as well; at the very least, it’s an accidental omission of a third party that changes the inference, as far as what he can testify directly.

10:10:37 AM
More on Schreiber’s travels from Switzerland to Nova Scotia – who paid for that ticket, Pratte wonders — and did Schreiber try to get proof of it, as with the salmon.

Fast forward, then, to his arrest — in Toronto — related to the German charges — $46 million alleged misbegotten dollars, according to Ontario court records, although the total keeps changing, according to Schreiber. We also get a Schreiberism on his ever mercurial relationship with the media — back then, he wasn’t so fond of us, Pratte notes. Sometimes he likes us, sometimes he doesn’t, the witness notes.

Back in Ontario circa 2006, meanwhile, Schreiber was battling extradiction in his own unique way, hiring lawyers and dispatching lengthy diatribes to Vic Toews, Stephen Harper and any number of other luckless ministerial pen pals.

10:22:04 AM
Schreiber once again briefly seizes control from Pratte – who is trying to question him on his fight to stay in Canada – and delivers a thunderous, if somewhat hard to follow, summary of the myriad reasons why the Canadian goverment should have rejected the extradition request – which, Pratte manages to point out when he stops to take a breath, his lawyers have made seven different times before various courts, but have lost every single time. It’s not over, Schreiber assures him – and us – somewhat ominously.

10:35:37 AM
Sorry about that unscheduled gap – these Berry issues always crop up right when things suddenly start getting good on the stand, like Schreiber delivering a spontaneous ode to the journalistic accuracy of Harvey Cashore, who he previously viewed as a “nemesis” most deadly, a shoutout to former Liberal MP Robert Thibault — “What media outlet is he with?” asks the judge, all innocence – whether actual or feigned, ITQ can’t begin to guess, although he seemed genuinely surprised to learn that the two men had actually met prior to his appearance at the Ethics committee– and an accusation from Pratte that Schreiber leaked – or rather, gave his lawyer permission to leak – the crucial affidavit that sparked this entire inquiry. It’s all very dramatic – and Schreiber clearly got a good night’s rest, because he’s giving as good as he gets as far as the back and forth with Pratte.

This whole inquiry, in fact – or so goes Pratte’s line of attack – is just another attempt by Schreiber to dodge the German justice system, isn’t it? Isn’t it? This is clearly meant to be the dramatic conclusion to Pratte’s evisceration of the witness, but Schreiber seems unfussed. He isn’t a “visionary” like Pratte, he points out. I think he means he won’t predict the future, but anyway, that’s it for Team Mulroney – and it’s time for our mid-morning break.

See, I told you today could get exciting!

10:57:53 AM
I’d just like to note that throughout his fantastical oratorical meanderings through past history, Schreiber made a point *not* to condemn the courts as part of the vast conspiracy arrayed against him, which is probably a pretty clever tactic considering the background of the person who is, to him, the most important spectator: Judge Oliphant himself.

Also, he’s taken it upon himself to favour certain journalists – not ITQ, alas, I think he thinks we’re some sort of court transcriptionist who doesn’t realize she’s supposed to sit upfront – with various bits and pieces from the binders and his own treasure trove of documents. During the break, he was handing out copies of the transcript from that Ethics committee meeting that he keeps trying to sneak into his answers.

11:01:40 AM
And we’re back – with a special request from the combined legal forces, minus Pratte for some reason, for a slightly shorter lunch break in order to end a bit earlier today so that all and sundry can enjoy the “glorious day” it is in Ottawa — it’s true; it *is* glorious out there. The judge agrees, earning the silent applause of everyone in the room, and then it’s over to Robert Houston, the next lawyer to take the stand, who represents Fred Doucet, and wants to know more about Schreiber’s diary and address book. Oh boy.

11:04:59 AM
Once again, the binder-jumping befuddles the witness, although not for long: eventually, he and Houston are both gazing at a photocopy of a page from Schreiber’s diary, specifically the page of “D”-initialed acquaintences from his contact list. Not surprisingly, there’s a listing for Gerry Doucet, as well as Edmond Chiasson, who was counsel to Bear Head.

Houston wants to know a little more about the corporate structure of BHI. Were there directors? Was Schreiber one of them? Who held the shares? Schreiber doesn’t recall if any directors were ever appointed, but says that Thyssen was the original shareholder. But according to Houston, the shares were actually held by AIL – which is one of Schreiber’s many shell corporations, isn’t it? In ITQ’s defence, it really is hard to keep them all straight; even Schreiber seems to have difficulty, although that could be deliberate. Anyway, Schreiber dismisses that, and says it must have been a “joke”. Oh, German accounting humour.

Gerry Doucet, however, is listed on corporate documents, as is Fred Doucet – although his last name, Houston observes, is misspelled, even though Gerry’s appears correctly.

11:13:47 AM
More delays in flipping to M – “for Mulroney,” Houston explains, thus spoiling any surprise as to the purpose of this line of questioning – and apparently, his name does, indeed, appear in the diary. Sidebar: Wouldn’t it be fun to see the *rest* of his address book? Imagine the names and numbers! Fax numbers, too, given his predilection for that delivery system for his correspondence.

Anyway, back to the shares, and IAL – which on a subsequent document, the initials of which were “struck out” and replaced by KHS – Schreiber, in other words. Oh, that was just a mistake by Klanke, Schreiber breezes along, Klanke apparently being German for Tibor. Schreiber attempts to explain the Thyssen incorporation process, but Houston – who isn’t one for suffering shillyshally and is already commanding considerably more obedience from Schreiber than did Pratte – has more IAL-related references, including the sale of the shares to Thyssen via the Doucet brothers, who were “custodians” of the stock.

11:22:52 AM
Okay, so we finally get to see where Houston is going with this — he claims the $100,000 deduction was to buy Bear Head shares from Thyssen, which Schreiber categorically denies; he suggests that Houston check the German court records, which show that he was the one who took the money from the Thyssen account, and muses that this is something Houston might want to ask Pelossi. Oh, there are a lot of things that *everyone* will want to ask Pelossi, that’s safe to say.

A change of tabulated scenery, now, and more about the signatures on the original Agreement that resulted in all those “success fees” going out, at least according to Schreiber, and Houston is most curious about the order in which the various signatories put pen to paper, particularly Perrin Beatty, who was last, according to Schreiber, but not according to Beatty – at least, according to Houston, and when Schreiber starts citing Frank Moores as his source, ITQ’s brain explodes, although thankfully, it’s a minor incident with no serious casualties.

11:31:34 AM
The relentless Robert Houston – who, from ITQ’s perspective, is doing a noticeably better job of handling Schreiber than Pratte – may be about to hit a landmine, at least as far as his very pointed questions about the irregular accounting methods deployed by Schreiber; the two eventually end up in a standoff over why the invoices for those “success fees” were set out in a particular way, since Schreiber claims that it was an attempt to, uh, simplify tax matters for the recipients, and Houston points out that the people he claims can corroborate that version of events are either dead or too ill to testify. (The latter qualification, it’s worth noting, refers to Gerry Doucet, Houston’s client’s brother.)

11:36:06 AM
Another oddity in the “success fee” invoices – a mysteriously disappearing $100,000, which Schreiber shruggingly suggests might have gone to Bitucan — “perhaps for Indonesia”. Was he paying himself a success fee too, Houston wonders, to which Schreiber replies, why not?

11:41:49 AM
And now, the death of Bear Head — specifically, when Schreiber began to realize that the project was shuffling to an ignomious death. This is mostly well trodden ground, as far as what Schreiber admits to having known, and when he knew it — although as we learned yesterday, there’s also the separate question of when he *believed* what he knew. The Schreibermind is a mysterious place.

11:46:08 AM
Oh, touche, Fred “The Doorman” Doucet — in response to Houston’s question on whether he took notes from any of these meetings with Mulroney and Fred Doucet, Schreiber tells him he did not – “I’m not a spy”. So people who keep records of meetings are *spies*, Houston boggles. As far as Schreiber is concerned, they are – especially when said notes include all manner of inaccuracies.

11:52:34 AM
And now, onto October 11th and 12th of 1993, as recorded by Schreiber, and the $30,000 figure that appears under the entry for 9am that morning, as do the names Jurgen and Hastedt — two then-Thyssen employees — and listings for later that afternoon and the next day that mention Doucet and Edmond Chiasson, a “staunch” Liberal supporter – as is his wife, Houston points out – and a repeat of the $30,000 from the previous page, and that list of politicians – and Chiasson.

What does all this mean? Well, according to Houston, it means that Schreiber knew all along that the money was going to these particular politicians. At which point Schreiber tells him that he wasn’t even in Canada at the time, so — oh, really, I give up. I can’t figure out why it matters whether he knew or didn’t know about the donations; as far as I know, they all got the money. Didn’t they? Does it matter whether Schreiber discussed what must have seen like charmingly tiny sums of money to be parcelled out to politicians from either side of the aisle while he was in Germany, or Canada? Other than inspiring a sense of deep appreciation for the various electoral financing reforms that have since been foisted upon our democratic process?

12:00:46 PM
Oh, here’s something that Schreiber might have wanted to mention a little earlier in the process: When something appears in his diary, it represents his *intention* to do something — not necessarily what actually happened. Is it just me, or is that – kind of important? Does he correct entries when events don’t transpire according to plan?

12:04:02 PM
Ahh, the New York meeting, at which Schreiber contends that Doucet was an uninvited guest – well, at the meeting with Mulroney, that is, which I guess is where Houston is going with this. More pointing at diary entries, including an encounter of some sort with Greg Alford – up next week, I believe.

12:07:27 PM
We *are* getting a lunch break, right?

Oh, and Houston is doing his best to demolish Schreiber’s claim that he didn’t expect Doucet to be there by pointing out that he – Schreiber, I guess – had made sure that he had a copy of the defence white paper that was discussed during the New York meeting, as well as the “Quebec project”, which Schreiber maintains was still alive, even after the election of the Parti Quebecois – until mid- to late-1995.
One thing Schreiber *does* recall, however, is Fred Doucet being on the phone, and waving it out the window — even though Houston challenges him now with the fact that Doucet *didn’t even have a cell phone*, a revelation made somewhat less thrilling when Schreiber points out that it could just as easily have been a land line, since it was right by said window.

12:13:09 PM
Okay, so I guess we *aren’t* getting a lunch break today — it was supposed to be at 1, I think, but Houston just told the judge that he has another half hour or so to go. Oliphant gives Schreiber the choice of carrying on, or breaking for lunch, and Schreiber assures him that he’s fine with the former: it’s during the afternoons that he gets tired.

And so, onward we plunge — to the memofied meeting between Doucet and Schreiber at which Schreiber claims that he told The Doorman that he wouldn’t commit perjury.

12:17:31 PM
Okay, this is getting irritating: Houston keeps referring to what he’s been “instructed” his client will testify, at least when it will contradict Schreiber’s version of events. Which he will probably do in the next few weeks – certainly by the end of the hearings – and will do so under oath, and subject to cross examination by the *other* parties’ lawyers, so why does he – or rather his lawyer – get to grill Schreiber on testimony that hasn’t yet been given?

12:23:53 PM
More questions about Doucet’s memo on that meeting with Schreiber, and the various salacious comments that Doucet claims that Schreiber said at the time.

Ah, and another pass at solving the enigma of the last paragraph of the memo – on which, if I were Houston, I’d not spend too much time at all, as it suggests that Schreiber was so hard up for cash that he was demanding payment from media outlets seeking interviews, which the witness once again dismisses as “nonsense”, and repeats his theory that actually, that sounds more like *Pelossi*, not him.

12:30:50 PM
Oh, and remember all those pictures of Mulroney and Doucet that decorated the latter’s office? It’s a small point, Houston allows, but his client will testify that these were in his *private* office, which Schreiber went through *after* the meeting. Schreiber maintains that he was only ever in one room with Doucet, and resists Houston’s nagging to acknowledge his fuzziness.

12:33:28 PM
Bob Houston has a theory, y’all – about that $250,000 figure that appeares on the mandate letter: It was because he – Schreiber – had forgotten how much money he paid Mulroney, and had actually slipped $100,000 into *his* pocket. Huh. Will Doucet testify to that, I wonder? That will make for an interesting cross examination.

12:35:06 PM
Houston – who has a rather disagreeably hectoring tone, I have to say, that grates more with every passing moment, although that could be the low blood sugar crankiness kicking in – also doesn’t think much of Schreiber’s explanation for his handwriting appearing on the mandate letter, and spends his last few minutes in an effort to — I don’t know exactly, get Schreiber to confess to having written it all out? If so, he will have to learn to live with disappointment, because Schreiber sticks to his story to the end. Or at least the end of the morning session, which has now arrived. The hearing reconvenes at 1:45 – so check back then. In the meantime, the ITQ thumbs need a break – and some sunshine. See you in an hour!

1:35:49 PM
It’s amazing how even a short — well, relatively speaking — lunch break can restore a liveblogger’s equilibrium, not to mention the elasticity of her thumbs. We’re now awaiting the return of the judge and the kickoff of the afternoon session, which may prove to be just as illuminating — or enmurkifying, depending on your perspective — as the first part of the day. It’s all up to Schreiber’s head legal wrangler, Richard Auger.

Will he ask about that heretofore unmentioned meeting between Schreiber and Mulroney in the latter’s office on the Hill, thus relegating any otherwise eyebrow-raising revelations from the morning testimony to the ninth paragraph at best? We’ll soon find out.

You know, I don’t think I’ve been this crazed with livebloggery on a Friday afternoon in months. Thank goodness I have half a Rice Krispie square in my bag in case of an emergency. And a bag of Cadbury mini-eggs in case things get *seriously* dire, but I’m hoping that won’t be necessary.

1:44:13 PM
Auger looks surprisingly calm, although he does have a tendency to adopt the classic defensive crossed-arm pose. I think he may have gotten a haircut for the occasion.

1:45:58 PM
And here we go: Auger tells his witness that he wants to return to Wolson’s “crash course on Bear Head”. Aw, man, is there going to be a test on this? Because I think some of the details from Monday may have been pushed out by subsequent testimony.

He starts out by pointing Schreiber at the letter he wrote to Peter White, which laid out what Thyssen planned to do, as far as marketing vehicles to North American and NATO countries, and a second letter that specifically stated non-NATO countries were *not* part of that strategy.

1:49:24 PM
More about export controls, and COCUM – that may or may not be spelled correctly – which was, according to Schreiber, an international organization that monitored the export of military equipment to communist and non-NATO countries. It was in effect until 1994, and was then replaced with another agreement that didn’t come into effect until 1995 or later.
During his discussions with Mulroney, Schreiber says that there was never any mention made of “exceptions” to the rule, as far as exporting material; Thyssen insisted that all COCUM restrictions be followed.

1:52:13 PM
And now, a much quicker trip down memory lane to Schreiber’s testimony while being questioned by Wolson, on his desire to meet with Mulroney to continue his “dialogue” on Bear Head from the June 3 meeting – a “dialogue” that, as per Auger and confirmed by Scheiber, went on for “many, many months”, at Harrington Lake and even at the Pierre Hotel in New York. Schreiber concurs that they were “constantly in discussion” — right up until the project was dead.
Auger then moves to another binder – I’ve lost track, to be honest, and I don’t have my laptop so I can’t even follow the PDFs – and an affidavit in which Schreiber discussed a capitalized-A “Agreement” – which is never defined or explained in any way, but which Auger suggests was an “evolving work in progress” about everything from Bear Head to organizing funds for Mulroney, and was the same discussion that took place at Mirabel. There was no Agreement – capital A or small a – that “happened magically in one day at Mirabel”, right? Schreiber agrees. No magic.

2:01:22 PM
Did Mulroney, Auger wonders, ever tell Schreiber that they should hold off on any discussions on future employment until after he had left the office of prime minister, or was no longer an MP? No. What about the phrase “cooling off period”? No, according to Schreiber, that didn’t come up.

So basically, this is Auger’s attempt to neutralize Team Mulroney’s claim that the Schreiber affidavit that forms the underpinnings of the inquiry itself – or, at least, the terms of reference. Is it working? Hard to tell. Somehow, I have a horrible feeling it may all land in the lap of a federal judge someday.

2:06:41 PM
For Schreiber, it turns out that “finalizing an agreement” means handing over the money, which is why, Auger suggests, he referred to the Mirabel meeting as such. In his world, it’s just not an agreement without a wad of thousand dollar bills in an envelope, I guess.

2:09:07 PM
Auger then moves to a – is it a deposit slip? A piece of paper serving as such? I didn’t catch the specifics, but anyway, Schreiber was apparently trying to find out how much money was available for the project – BHI, I guess – and the paper in question includes the figuer $500,000. All this happened on July 12, 1993 – between the Harrington Lake and Mirabel meetings, I guess.

Attached to the same affidavit, Auger notes, is a photograph of Brian Mulroney, which Schreiber says he received when he returned to Canada “later in the year” — December 1993, where it was waiting for him in his Ottawa office. According to Schreiber, during the Harrington Lake meeting, Mulroney told him it was a copy of the photo that would eventually appear in the House of Commons, as his official prime ministerial portrait. Wait, doesn’t Mulroney have an official portrait – like, in oil? Maybe they use a photo as a placeholder until there is a painting ready for hanging.

2:16:29 PM
Oh, good, the mandate letter. Haven’t heard about that in – at least a couple of hours. Auger goes through all the occasions on which Mulroney and Schreiber didn’t decide to draft an agreement or contract, and Fred Doucet mysteriously declined to suggest doing so – up until February 4, 2000 – a few months after that fateful fifth estate broadcast, but fully “six or seven years” after what Auger meticulously refers to as “the commencement of the dialogue.”

Did Schreiber know it was Doucet who typed up the document? No, he didn’t. Did any of us? Does it matter? That wasn’t rhetorical; I really don’t know.

Auger then moves to Fred Doucet’s several years retrospective memo to himself on the meeting in New York, particularly the frequent use of the word “international”, which Schreiber concurs he never mentioned during the discussions *he* had with Mulroney.

Oh, and “watching brief”? According to Schreiber, that wasn’t a term that he used at the time, yet it still turned up in the Doucet-typed mandate letter.

2:24:25 PM
Well, the hearing may still be underway and Schreiber is still on the stand, but that hasn’t stopped Team Mulroney has just sent out a press release summing up “A week in the Life of Karlheinz Schreiber”. It’s too long to post the whole thing here – and besides, that’s what newswires are for, right? – but here’s the opening paragraph:

Four days ago Karlheinz Schreiber strode into the Inquiry promising “seven scandals in one.” By the end, he limped off the witness stand, broken by rigorous examination, discredited as a believable witness, his reputation in ruins.  His main allegation – that he entered into an agreement with Mr. Mulroney while he was still Prime Minister to lobby
domestically – was destroyed by his own testimony under oath.

Whew! Makes you wonder why we’re still here, doesn’t it?

2:27:38 PM
Speaking of being here, Auger has finally gotten to the delicate matter of the Schreiber handwriting that miraculously – what is the opposite of a miracle, by the way? – appeared on the mandate letter.

The judge jumps in for a moment and wonders how Doucet would have known about one of Schreiber’s German companies – the witness suggests he could have given him a business card. He then tells Schreiber not to attribute “any particular significance” to him asking a question of a particular witness; sometimes he just likes to get stuff straight in his own mind. Amen to that, judge.

Oliphant then offers Schreiber the chance to explain how handwriting that he acknowledges is his got on that mandate letter, and Schreiber, surprisingly, does not put on his best tin foil hat and head off to Conspiracy Town — he just sticks to his claim that he may have written those words at some time, but it wasn’t on that document.

2:33:52 PM
Oh, so *that’s* why Pat MacAdam is on the witness list for next week: he reminisced about the Mulroney/Schreiber relationship on that infamous 1999 fifth estate report on the “mysterious dealmaker”. Anyway, Auger reads from a transcript of MacAdam’s interview, which discusses how Schreiber and Mulroney met before the latter even took over as leader of the opposition, all of which Schreiber confirms.

There is also more Kaplan – subsequent to his first book, just to be clear – which credited Philip Mathias with first “cracking” the story of the $300,000 payment, an article of which Schreiber concedes he was “vaguely” aware; at those times, Auger notes, Schreiber was aware that the story had gone public — it had been on national television that he had met with the former prime minister, and given him cash.

It’s weird to sort of mentally go back to that actually fairly brief period between the settlement of the libel suit, and that first CBC broadcast, when as far as most of the world was concerned, Schreiber was nothing more to Mulroney than an occasional coffee-drinking companion.

2:45:12 PM
Yikes. Someone – I’m not sure if it’s Schreiber, or an errantly turned on mic, but occasionally, the audio fills with the longest, deepest most rumbling sigh I’ve ever heard.

Anyway, the questioning has veered off to what may or may not turn out to be the tangent of the day; Auger reads past comments but Schreiber on other contact between himself and the former prime minister – this was during the Eurocopter trial, for the record – and Bernstein’s failure to follow up on Schreiber’s comment that he had met with Mulroney on several other occasions – in the lobby of the House, in his office — SCREEECH.

Wait — “in his office”? As in, his parliamentary office? Let’s go back to that, shall we?

I swear, if Auger leaves this hanging again, I’ll – I don’t know what I’ll do, but it won’t be pretty.

2:51:49 PM
You’re killing us out here, Auger — somehow, we went from the precipice of an answer to the question that has hung over the inquiry since Schreiber coyly declined to comment on the meeting that may have been, to Schreiber’s past criticism of Kaplan’s journalism, including, he recalls, on the very first page of Presumed Guilty, which Kaplan got “completely wrong” — the anecdote that opened the book, he says, was ten years out of date. Which, in fairness, could be a typo, but I get the gist.

2:54:42 PM
It’s nearly three, so Auger offers to take a break. Schreiber, obviously enjoying himself, wants to plow onwards, but the judge takes pity on the rest of us and gives us a fifteen minute break.

See you in a few.

3:13:54 PM
Okay, first, a confession: I completely forgot to rise when the judge left at the last adjournment. I apologize to all and sundry, and accept my punishment, whatever it may be. (I was lost in liveblogging and didn’t even look up, not that this is an excuse of any kind.)

Auger is back up, by the way, and we’re going through – is this one of Schreiber’s interviews with Kaplan? It’s so hard to keep track sometimes. Anyway, Auger wants to discuss the sentence in which Schreiber described Mulroney as a “value-added representative to support the sale of peacekeeping and environmental protection equipment out of Canada”.

It’s a frustratingly ambiguous statement – which isn’t the writer’s fault; how was he to know it would eventually end up as the object of cross examination at a judicial inquiry? When questioned about the sentence yesterday, Schreiber confirmed that it was true, and does so again, only in his mind, it meant selling vehicles in Canada — not, for example, to China.

3:22:34 PM
Now he’s just teasing us: Auger brings up the absence of any meetings between Mulroney and Schreiber between 1994 and 2000, but during which time the former prime minister made frequent calls to Schreiber’s secretary, Mrs. Kupp, who worked in Germany, and who worked closely with Mulroney and his lawyers on the original letter to the Swiss authorities. How often, exactly? It was “very intensive” at the time of the Swiss request — “many, many times”, although Schreiber declines to say whether that meant daily, weekly or any other specific measure of time.

She’d be an interesting witness, wouldn’t she?

Anyway, Auger points out that there was a “gap” in correspondence of the written variety throughout that period, and Schreiber notes that there was “no reason” to be sending letters around.

3:27:18 PM
Back to the Mirabel meeting, during which Schreiber did *not* rent a suite at the hotel — he was a Lufthansa VIP at the time, which meant he got a limo to and from the airport to Ottawa, which is a pretty nice perk when you think about it. I wonder if they served a roadside salmon lunch as well? Anyway, he met with Mulroney at *his* – Mulroney’s – hotel room, and flew back to Germany the same night.

3:31:50 PM
Liberal minister alert! A letter from then-Transport Minister David Collenette, circa 1995, which discussed the still technically extant Bear Head project, which arrived shortly before the GM contract was announced, thereby heralding the death of the dream. Okay, that could have been a more interesting segue into Liberaldom, but this isn’t my cross; I’m just the liveblogger.

More about the white paper – *that* white paper, I guess; the one that may or may not have been the major item on the agenda at the New York meeting, which was sent to Mulroney’s secretary. I guess he didn’t have to get his copy from Fred Doucet, and – yeah, that seems to be the point of this sub-sub-tangent.

Oliphant wonders why it matters why Schreiber thinks Doucet sent the fax to Mulroney when Doucet himself will be here to testify, and Auger sort of grudgingly agrees; he, I’m sure, would rather establish Doucet’s motives using Schreiber’s testimony, but he moves on — onto the Alberta lawsuit. Did he ever try to use the Alberta lawsuit to “generate interest” in a public inquiry? Schreiber can’t recall, but he notes that he had already made up his mind that an inquiry was needed, and describes some of his efforts to bring it to fruition, including a vote at committee in support of such an initiative, which the Tories, he recalls, lost by one vote. That would be the standard breakdown of opposition vs. goverment at your typical 2006 era minority committee, yes.

3:41:01 PM
Auger gives Schreiber the opportunity to explain that puzzling AIL reference in the Bear Head incorporation documents, which he — sort of does, but really doesn’t, and eventually suggests that Greg Alford can probably clear it up.

And – wait, that’s it? Well, that’s just great. Is nobody ever going to ask about this mystery meeting? Because that seems like a rather vast and yawning oversight to ITQ.

But that *is* it – at least as far as Auger is concerned; Pratte leaps up to try to clarify what Mulroney meant in the affidavit cited by Auger during his questions, and — well, I guess he sort of got his point across.

Wolson notes that normally, he would have the right to re-examine Schreiber at this point, but since he’s coming back in May, he’ll hold back until then.

Ooh! Cabinet confidence documents! Fresh off the truck of secrecy! Also, a report from Navigant — not sure what that is, but apparently Auger will have to review both that and the cabinet goodies, and discuss them with his client. Oliphant concurs, noting that Auger knows “the limits and boundaries” of what he can and can’t talk about with his client before his next appearance, and as such, can be permitted to speak with him.

And — that’s it until Monday morning. Unfortunately, ITQ won’t be able to liveblog every single day next week, although she’ll be paying close attention to each and every witness, never fear. She’ll keep you posted — but for now, have a great weekend, everyone!

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  • http://www.jackmitchell.ca Jack Mitchell

    I’m psyched!

    The heart must be braver, courage the bolder
    Mind the stronger, as his testimony continues . . .

  • Stephen

    In Schreiberworld the 7 scandals are;

    1) Robert Fowler blocked my sale of life saving armoured vehicles, Fowler lied Canadians died, and I am going to be deported
    2) Allan rock wrote a nasty letter about me to the Swiss and Germans, who want me deported
    3) Stephen Harper is conspiring to get me deported
    4) Stephen Harper is co-operating with Brian Mulroney to get me deported
    5) Brian Mulroney Killed the Bearhead project without telling me or giving me a reason to not be deported
    6) Brian Mulroney didnt interven on my behalf to keep me from being deported despite the fact that I had hired him for other work, see item 3 and 4
    7) My pasta machine is being laughed at and I am going to be deported

    We will see if these are the scandals, oh and for extra schreiberscandal points, Brian Mulroney showed me where the private bathroom from his office was when I drank too much coffee, only he escorted me there.

    • Dot

      Do you just cut and paste your previous commentary from ages ago at andrewcoyne.com? Got any new material? Or has the jury been out for years?

      • Stephen

        That was new material, remeber try the veal…..but as for the substance of your comment.

        I have viewed Schreiber as an storyteller for years. I was quite interested in what he had to say the first time he opened up, years ago. But his pattern is clear, sorry you don’t see it. He holds back tidbits, or claims to have a big prize just behind the door which he will reveal at a time of his choosing.

        His motivation is to avoid extradition and the pattern of behaviour shows that. I know you desperately want to believe he holds some secret info that will show Brian Mulroney to have accepted millions in cash for favours granted. Problem is there isnt any evidence to support that.

        But you know I could be wrong and if he finally does reveal something of importance then fine. But th testimaony to date and over time shows shifing stories, interpretations admissions of being willing to “do and say anything” to avoid deportation.

        The fact that this carny artist has been allowed to run his game says more about his “marks” than it does about him since he was revealed as such a long time ago. Why you choose to believe he is anything other than he appears to be is the mystery to me.

        By all means, let him speak, but he has said nothing new, he said nothing new at the Ethics committee and at this stage can you really beleive him since he has been under oath how many times?

        He doesnt want to go back to Germany because he will go to jail for tax evasion. It really isnt that complicated…..but you want to see Mulroney have the crap kicked out of him, hey whatever floats your boat.

        • Dot

          Well, it seems to me at the time you were most offended by the circus like Committee hearings, and insisted that it be shut down, and a proper inquiry/investigation be undertaken, if required. This was, also, at one time Mulroney’s wish.

          I just find it ironic that you rush to judgment when all of the evidence is not in (from all witnesses), and Schreiber hasn’t even had the benefit of direct exam by his own council.

          So much for due process…

          • Stephen

            And the ethics committee wasn’t a circus???

            Evidence is in? Dot, honestly, what eveidence came out of the Ethics committee. What evidence has been produced. It might, that remains to be seen.

            I am saying this is a waste of time and money, but it has been called so let it go forward.

            The lack of critical faculty exhibited by yourself is amazing. I am sure that if Schreiber indicated he hinted that he had discovered cold fusion but that Brian Mulroney and some Deputy Minister prevented him from bringing it forward you would treat him seriously, despite all evdence to the contrary.

            Now the nice thing about the inquiry to date is we are getting Schreiber “full monty”. And be honest, you would like this guy telling your story, as in he is a believabe reliable straight arrow?

            Do I have an opinion of Schreiber, yup. And that opinion, based on his prior behaviour says, all assertions of his are to be tested, require documentary proof from multiple sources and that anything he says needs to be rubbed against the idea that he seeks to avoid extradition. Other than that I think he is a hell of a guy and would be a real scream at parties.

            If you havent looked at any of this prior then I understand your desire to listen, as you havent had the chance to see Schreiberama in all its glory…but you indicate you have been folowing this so I can only surmise that you, like Thibault, are subject to pixie dust and con men.

            There is nothing new here, other than Schreiber being caught in false or misleading affadavits and testimony and the continuing saga of salacious promises.

            I await the sober reflections of the Justice Oliphant. This of course does not preclude Justie Oliphant from also finding that Mr Mulroney has been econmical with the truth as well, which I am sure you will take as the whole point and use it justify a public hanging.

            Schreiber has conned many, including the 5th Estate, usually willingly. When you wake up to that fact then you realize this has been an exercise in deportation avoidance by Schreiber and an exercise in Mulroney derrangement Syndrome by Cashore and others, but that judgement can come later.

          • Dot

            Very presumptuous of you to put words into my mouth. I have argued most of those same points with you elsewhere before you did the “switcheroo”.

            But, good advocacy for your latest firmly held position, until it changes.

    • an online reader

      Will any “no deportation for proof deals” come to light before all witnesses are questioned ?

  • archangel

    And so the Justice System kept Scheherazade in Canada as it eagerly anticipated each new story, until, one thousand and one cross-examinations, and seven revelations later, the audience had not only been entertained but wisely educated in morality and kindness by Karlheinz Scheherazade who was _____.
    [Fill in the blank]

    • archangel

      Oh, and Kady — what do privateers and buccaneers have in common?

      • James Connors

        I’ll bite. Privateers let the market decide the price of ears? Buccaneers, fixed price per ear?

        • MJ Patchouli

          Fixed price: a buck an ear…

  • Anon

    Thought that Schreiber held up pretty well yesterday. Hope someone will ask him about that one-on-one meeting with Mulroney at his office.

  • Eli Xenos

    I’ve grown fond of Karlheinz. Ya, I never confused him for Jesus; he’s not tall enough. Still, I must give myself a head-knock to remember that he sent a plane load from Quebec to tip the balance against Joe Clark. Yes, he’s a bad guy but he was only a helper of some larger players.

    • Wotcher?

      How tall was Jesus?

      • Dot

        If he was a coffee, he’d be a vente. Schreiber is, at best, a tall, more likely a short.

        • archangel

          An espresso doppio?

          • http://www.jackmitchell.ca Jack Mitchell

            With Schnapps.

  • Sean Stokholm

    Kady, your tag inspired me (I know you probably meant Schreiber, but it worked better this way)…

    Tyssen’s Privateers

    Oh the year was 1993
    (How I wish I was in Baie-Comeau!)
    A letter of marque came from Karlheinz
    For the head of a bear and the four-nine-fives

    God damn them all, we were told
    We’d work for cash-stuffed envelopes
    We’d sell the jeeps, shed no tears
    Now I’m a broken man from the Fifth Estate smears
    The last of Tyssen’s Privateers

    So I shilled armoured cars in faraway lands
    (How I wish I was in Baie-Comeau!)
    Old Schreiber bugged me night and day
    And when he got tired, in stepped MacKay

    God damn them all…

    But it wasn’t enough for that German beast
    (How I wish I was in Baie-Comeau!)
    There was never an end to his calls and pleas
    And his crazy plans for a pasta machine

    God damn them all…

    So here I sit in my seventieth year
    (How I wish I was in Baie-Comeau!)
    Oliphant and his gang have me in their nets
    And my only friend is Ignatieff

    God damn them all, we were told
    We’d work for cash-stuffed envelopes
    We’d sell the jeeps, shed no tears
    Now I’m a broken man from the Fifth Estate smears
    The last of Tyssen’s Privateers

    • http://www.jackmitchell.ca Jack Mitchell

      Brilliant!

      • Sean Stokholm

        Thanks! I sure wish I could edit it to spell ‘Thyssen’ properly, though.

    • Eli Xenos

      Indeed excellent. The poem is Homeric in the style of the Iliad. We need a song in the style of the Odyssey wherein a hapless hero pines for release from a cloying goddess, and passage to his home of long ago and his heritage as a son of an electrician. Psychopathological insights, that’s what we need, eh?

      What compelled the old boy to travel road up and the road down to Anomos. What compelled the sins he did, and the sins he did not do. That is, of course, if such behaviours were sinful and not merely eros of judgment.

    • E.B.

      I think some accreditation or apology to Stan Rogers should have been included. But, other than that, I raise a glass of “Garnett’s Homemade Beer” as a toast. Cheers.

      • Sean Stokholm

        Thanks – I certainly wasn’t trying to pass that off as my own creation, so much as running with Kady’s pun – I assumed Barrett’s Privateers was widely enough known. However, on the off chance someone hasn’t heard it before, I insist you immediately check out

        http://www.youtube.com/watch?v=G-PQbdmQRwc

    • MJ Patchouli

      I sang it aloud. Great work; great entertainment for the crazy person who works from hom…

  • knick

    Pratte’s manner today is somewhat less unprofessional than yesterday. But two days of intense questioning by Pratte seems to have achieved nothing but the establishment of some relatively trivial inconsistencies in Schreiber’s previous statements. Today’s line of questioning simply confirmed what Schrieber has said all along, that he would do anything to avoid deportation to Germany. If this is the best that Mulroney’s team can do, then it does not look good for Mulroney’s period on the stand where he will have to explain once and for all why he, as PM, accepted cash from someone who would do anything to stay in Canada.

    • john peters

      2 days? he didnt even need a day after the work that wolson did. this is such a waste of time.

  • WarrenT

    Thank God Pratte is through. He doesn’t measure up to Ontario standards. So far the quality of counsel on all sides is disappointing. Auger hasn’t objected once the improper questioning about Greenspan’s instructions or purely improper questions about Schreiber’s motives. Absolutely no foundation.

    • john peters

      we’re you watching on mute? how do you mesure lawyers in ontario vs……ontario? he’s from ottawa.

      “by height.”

      • WarrenT

        Sorry, I thought he was Montreal. I’m surprised he practices in Ontario. Not by height by professional performance. Ontario standards are pretty high.

  • http://news.gc.ca/web/dsptch-dstrbr-eng.do?mthd=ntnl Steph C

    With the House on break, it is the only game in town for the sans-politicos journos. As you say, however, we could still get the usual Friday afternoon low-profile-but-should-be-high-profile announcement. Any theories of what poisonous darts Steve’s soldiers will bring to town next week? Will they stick with the Iggy <3 taxes line or something uglier?

    Back to the inquiry, there are two bowtie guys there: Media Relations Guru Barry McLoughlin and Schreiber’s lawyer (?). Justice Oliphant looks more like a short-sleeve shirt, no-tie guy, but that’s just me.

  • http://arsenisms.blogspot.com/ Fat Arse

    @ Sean Stokholm

    Marvelous – I started to laugh so hard I just blew java through my nose!

    Thanks for the levity.

    • Sean Stokholm

      thanks!

  • http://arsenisms.blogspot.com/ Fat Arse

    QUESTION for the computer literate.

    As my name may suggest I am both large and dense – tried to figure out if it is possible just to stream the AUDIO from this inquiry. No luck so far.

    Phoned CPAC to see if their site offers such service – but the polite lass at reception didn’t have a clue what I was asking.

    Does anybody know if there is a site that streams this in Audio format only?

    • Harbles

      It appears not. They do have a low bandwidth video feed though.
      Why did you need an audio only feed? Didn’t want to waste the pictures? lol
      They have podcasts but by nature are not “live”. I’m not sure if this Inquiry is included on the podcast list though.
      I’d doubt if any other sites would have audio but CBC does have video coverage on theirweb page.

  • Ted

    This is it. The whole thing was a front set up by IAL (i,e, airbus) as a way to funnel money to BM

  • Peter

    Mulroney’s counsel spent a lot of his time trying to prove that Schreiber wanted an en enquirey and as Schreiber said Mulroney also claimed he wanted an enquirey so “i was in good company”.
    The only difference is which is very important and enlightening Schreiber wanted an all encompassing enquirey with no limitations so everything comes out whereas Mulroney fought with his big battery of lawyers to limit the the scope of the enquirey and the questions that could be asked and unfortunately the truth and total revelation will suffer because all the facts will not come out..
    Why was Pratte so upset that Schreiber got a letter from the Savoy hotel that Mulroney picked up the 2100 dollar tab for the extravagant luncheon – Schreiber was very right to get some paper evidence when dealing with Mulroney but it appears Mulroney is very touchy about this meeting not only because of the obscene extravagance but also the prime reason for the meeting was to attempt to obfuscate the fact that Mulroney did receive 3 hundred thousand dollars from Schreiber which he had never to that point in time declared to Revenue Canada and the noose was getting tight for Mulroney.

    • herringchoker

      Actually Peter, Pratte was clearly trying to demonstrate that Schreiber was in the habit of arranging to “bump into BM” and then claiming they had inportant business together. (He made the same point about Schriebers meetings with BM at the Ritz-Carleton in Montreal. It turns out these meetings were get-togethers at the hotel bar and accompanying lounge.) In Zurich BM clearly frustrated this by having them meet for lunch in his room. Hence contacting the hotel with questions about payment. (Schreiber said this was a joke between him and the hotel manager, another old friend of his.) Just an effort to create a paper trail.

      As to the cost of the meal, I wouldn’t be surprised if the 2000 SF was for the room and associated costs, probably for several days. I managed to rack up a $500+ bill for two nights in Charlottetown last year (sans meals) and I wouldn’t be surprised to discover that BM has a higher per diem than me.

  • Stephen

    Dot says,

    “Very presumptuous of you to put words into my mouth. I have argued most of those same points with you elsewhere before you did the “switcheroo”.

    But, good advocacy for your latest firmly held position, until it changes”

    My position hasnt changed, nice assertion…where can I sign up for the KHS school of debate.

    So what is your position on KHS actually, I wouldnt want to put words in your mouth. You find him to be believable or are you going to take the intellectually lazy way out after all this time and claim I wait to hear the evidence, its not like this story hasnt been told many times before. My position is I wait to hear something new from KHS, no switcheroo….I am still waiting.

    So really DOT, what say you after much deep thought about this whole affair, its not like it hasnt been in the news, for 15 years!

    • Dot

      Stephen, of andrewcoyne.com wrote this some time ago:

      The issue, and I share your doubts, is supposed to resolve the issue of what the $300,000 was for. Was it for future or past services.

      This needs to be clear in the terms of reference.

      Shcreiber has said future services, which is what you are addressing. Of course Schreiber is hinting, winking and nodding that maybe iot was for prior services, never explicity always a hint.

      The broader terms of reference for the inquiry need to look at the air canada airbus deal in general, and where at least half the comissions went amounting to $10,000,000. Once again if they are success payments for lobbyists thats fine….a commission salesperson.

      However, apparently the aircanada contract stated that there were to be none of these, a way to get the lowest price.

      As it relates to BMXPM, it is all about the $300,000 being for past or future. If the future, there really is no issue, and that appeared to be the issue in the lawsuit, which BMXPM won. The government made an unproven allegation and was rightfully taken to task, lets be clear that no matter who the citizen is the government can’t engage in rumourmongering. The power of the state is awesome and nearly infinite and needs to be properly engaged.

      WHatever you think of BMXPM anyone interested in rights should be behind him on that lawsuit.

      However, we asa nation need to understand what was the $300,000 for…past or future. At the end of the day that is the issue.

      http://andrewcoyne.com/columns/2007/11/prime-ministers-and-their-friends.php#5918070750234417604

      My thoughts are on the andrewcoyne.com site. I posted there as “Derek”.

      I will await until all evidence is in from this inquiry before rendering my final verdict.

      • Critical Reasoning

        Derek. You’ve finally settled on a gender.

        • Dot

          I threw that in recognizing I’d confirm ITQ’s and Inkless’s suspicions, going back to pre online commentary when you needed to e-mail directly to offer sometimes constructive criticism, or god forbid, suggestions on what to cover, more often than not, not well rec’d.

  • Catherine

    It seems to be to Mulroney and gangs’ benefit that the Harper Federal gov’t decided to not include testimony obtained from the ethics committee.

    They are setting Schreiber up as the sacrificial lamb.

    • Scott M.

      It’s a miracle!

    • Stephen

      Its not like evidence or testimony has a expiry date, they can ask the questions again and get it resubmitted as new, or say it again. Which partially explains why the lawyers so far are nitpicking…they want to get it all on THIS record.

      As for why…someone with more knowledge than I needs to comment, as I understand it from Oliphant’s comments they asked “Parliament” to waive priveledge and “Parliament” refused. What the reasoning or precedence is behind all of that I don’t know. I suspect, subject to confirmation, that it deals with Parliamentary supremecy and Parliamen not wanting to set a precednce that its hearing can be used in courts…..or something like that…..I think it is more prosaic, ie bureacratic and legal, than a plot by the Dark Lord, but we are in Schriberworld where all manner of things are possible.

      • knick

        Wasn’t there some back and forth on the Ethics Committee about witnesses being more likely to appear and be forthcoming if witnesses were assured that their evidence before the committee would be privileged?

  • knick

    “12:17:31 PM
    Okay, this is getting irritating: Houston keeps referring to what he’s been “instructed” his client will testify, at least when it will contradict Schreiber’s version of events. Which he will probably do in the next few weeks – certainly by the end of the hearings – and will do so under oath, and subject to cross examination by the *other* parties’ lawyers, so why does he – or rather his lawyer – get to grill Schreiber on testimony that hasn’t yet been given?”

    That did seem odd – Houston didn’t just make these comments once or twice, but frequently. Is it some sort of legal manoeuvre to get testimony on the record that otherwise wouldn’t appear until later? If so, why?

    So far, the destruction of Schreiber’s credibility seems somewhat underwhelming.

    • Mike Redmond

      It is logistically difficult to have Mr. Schrieber come back after the other witnesses and ask him if his recollection is the same as the evidence they gave. It is a fairer process to put to him the evidence that other witnesses intend to give and allow him an opportunity to respond to it now. If, for some reason, that evidence is not elicited in future, Mr. Schreiber’s counsel can point that out and Justice Oliphant will weigh Mr. Schreiber’s responses accordingly.

      (I wouldn’t have thought by now that Mr. Schreiber had any credibility left to destroy.)

  • herringchoker

    Hi Kady,

    Bob Houston’s questions about Fred and Gerry were about how their names appeared in KH’s diary, not any corporate documents. It was actually a good point. Gerry and Chaisson’s names appeared several years in a row, alphabetically, whereas Fred’s name was scribbled in for the first time at the bottom of the page in 1988. As KH pointed out, at the start of each year, he would go through the previous year’s journal and copy relevant contacts in the next year’s volume. Hardly an earth-shattering revelation (as Gerry and Chaisson were his Nova Scotia lawyers) but a fair indication that he had no business with Fred before 1988.

    He also managed to misspell both their names, he just misspelled them differently.

  • thejaberwock

    Re: your 12:17 comment. There is actually a reason why counsel put evidence that has not yet been given to a witness under cross-examination. It’s known as the “rule in Brown v. Dunn”. Essentially, it’s considered unfair and impermissible to lead evidence AFTER a witness has testified, which contradicts or makes that witness look like a liar, when you haven’t put the evidence to the witness and given him/her a chance to respond to it at the time of their testimony. Of course, in this case, Schreiber will be called twice (and will have the chance, presumably, to respond to the evidence called in the interim). So there might be an argument that Brown v. Dunn doesn’t apply. But it’s a pretty longstanding common law rule and the safer course for counsel is to put the questions to him now.

    In terms of whether it’s unfair to put testimony on the record this way, that isn’t really a factor. The basic rule is that you can ask a witness anything on cross-examination, within the bounds of relevance and privilege, so long as there is at least a basic good faith basis for believing that the proposition you put to the witness is true. Fortunately, anything said by the lawyers is not “evidence”, it’s just a pointed question. The only evidence is what the witness says in response. No unfairness here.

    • Mike Redmond

      Thank you for that clear explanation.

      But is Mr. Schreiber going to be called again? He’s already given his evidence in chief through the commission’s counsel. I haven’t been watching the procedural aspects of this hearing that closely, but is it intended that he will give his evidence, again, through his own counsel? That seems an odd way to proceed, since, presumably, he would then be subject to further cross-examination by everyone.

      • thejaberwock

        My understanding is that he is going to be called twice – once now (in which he is examined by: Commission counsel, all other parties’ counsel, then re-examined by his own counsel); and once towards the end of the hearings (in which, again, he will be examined by Commission counsel, all other parties’ counsel, then re-examined by his own counsel).

        I believe that, like in other public inquiries, the right of re-examination by one’s own counsel comes last during any witness’s testimony.

        • Mike Redmond

          I wasn’t aware they were intending that. Presumably the same process will apply to Mr. Mulroney.

          If I were Mr. Schreiber’s counsel I might thing twice about putting him in that position again. He apparently finds it challenging to tell the same story twice without significant variations in detail. Still, a further examination might be entertaining.

          Insofar as the purpose of this process is concerned, though, to date I’m not sure he has provided any new insights into the issues which Justice Oliphant is considering. To the extent he has given any consistent evidence, Mr. Schreiber’s testimony to date would seem to confirm in broad strokes, exaclty what Mr. Mulroney has stated. In any case, it does seem those hoping for some new revelations regarding the “Airbus Affair” will be disappointed.

  • Peter

    Herringchoker
    What Schreiber said was a joke about the Savoy meeting and the receipt was the remark that it may be needed for income tax purposes in Canada.
    You better believe that Schreiber is very happy that he got this piece of paper trail as proof of this meeting when you are dealing with a character like Mulroney.

    • herringchoker

      Very happy, especially when he was meeting with the Fifth Estate the following week.

      • Peter

        Yes . Any denials by Mulroney to the Fifth Estate story were now impossible – one of the best moves Schreiber made. The noose was getting tighter for Mulroney and his problems with Revenue Canada. Was there now an attempt by Mulroney to try some type of cover up or lay grounds for a denial of facts ? Was Mulroney above anything like this? Was he telling the truth just like he told Canadians he was supporting Joe Clark at the Winnipeg convention. Was he telling the truth just like when he told Canadians that he barely knew Schreiber or that he may have had a cup of coffee with Schreiber in a hotel?

        • herringchoker

          Joe Clark was my favourite bit of the story. I especially liked the part when KH, Walter Wolf, Frank Moores, Elmer Mackay & BM mind-melded with Joe and convinced him that two-thirds support wasn’t enough. They followed it up by doing the same with the lava creature.

          • herringchoker

            That would be the Horta (thank you Wikipedia!).

          • Peter

            Yes Walter Wolf was a top player for Mulroney in organizing the delegates to vote against Clark at the Winnipeg convention and in fact was credited with raising money for the cabal who were planning and organizing the downfall of Joe Clark.

  • Stephen

    …..and Schreiber fails to produce anything of substance regarding meetings alone in Mulroney’s office that he so salaciously hinted at.

    KHS is one of the best at playing “made you look”. I admit to grudging admiration for his tactical skill, I believe his background before bein an internal business man of mystery was in the “intelligence” business.

    My predicition, he will now have the media chasing him to say what it was, of course it will be said out of court and not under oath.

    Hook, Line and Sinker……

    • Peter

      It is a revelation in itself that Schreiber met with Mulroney in his office because from day one Mulroney told Canadians he had no relationship with Schrieber.
      It is Mulroney’s version of events that is not withstanding scrutiny and he may have yet to return the 2 million dollars to the Canadian taxpayers – in fact he shouldn’t wait to be asked he should return the money on his own.

      • Mike Redmond

        Why should he do that? Mr. Mulroney didn’t receive any monsey personally from the government, he received money to pay the legal fees associated with the settlement of a libel action. That action was based on government statements that wrongly alleged Mr. Mulroney had engaged in criminal conduct relating to the purchase by Air Canada of the A320s. There is still no evidence to suggest any of those allegations are remotely true.

        • Peter

          Mulroney misled the government that Schreiber was not a business partner of his and in fact he barely knew Schreiber. He didn’t disclose that he received 300 thousand dollars from Schreiber. Moores connection who received millions for Air Bus was never thoroughly investigated. In fact Moores was another guy who said he didn’t know Schreiber but the media contacted Moores on holiday in Florida living in one of Schreiber’s condos. Did Moores siphon any money to Mulroney – we will never know I suspect.
          What I do know is that Schreiber wanted a wide sweeping enquirey because he had nothing to hide but Mulroney’s battery of lawyers fought hard and succeeded in limiting scope of enquiry – can anyone guess why the difference between Mulroney and Schreiber on this issue. Who has definitive proof that some of the money didn’t end up for Mulroney’s personal use??? You are dealing with someone who has been known to tell lies.

  • Stephen

    For a little perspective. Here is a little piece from, as quoted by KHS’ lawyer Mr Auger, “the award winning reporter” who broke the Mulroney Schriebergeld, cash payment story. So interesting perspective pre-commission, post Ethics Committe perspective.

    >>>>
    Philip Mathias: The mobbing of Brian Mulroney
    Posted: January 24, 2008,

    Philip Mathias

    In his book Witch Hunts: From Salem to Guantanamo Bay, Robert Rapley, a retired Canadian civil servant, demonstrates that a witch hunt can occur in any country at any time. His examples include the trial of Captain Alfred Dreyfus for treason in 19th-century France and terrorist prosecutions in Britain in the 1970s. In most cases, the accused were innocent.

    Rapley makes no mention of a 21st-century witch hunt in Canada today: the persecution of former prime minister Brian Mulroney, who has not been shown to be guilty of any crime. Mr. Mulroney has been investigated for at least 15 years by the RCMP; by an author with an apparent axe to grind; by the CBC and other media; and now by a Parliamentary ethics committee looking into his dealings with shadowy German businessman Karlheinz Schreiber. In a few months, a public inquiry will be launched by the Conservative government of Prime Minister Stephen Harper into Mr. Mulroney’s conduct, mostly after he left office and became a private citizen. None of these inquisitors has ever found evidence of a crime, and there is no indication there is any to be found. Yet the witch hunt goes on.

    More accurately, the campaign against Mr. Mulroney is what academics call a “mobbing,” a process that is most visible on politically correct university campuses. An unpopular member of faculty is targeted by an accusation and then subjected to an inquisition, which eventually leads to his expulsion in disgrace. Very often, the accusation is trivial or false, and the disciplinary process is abused. This is what has happened to Mr. Mulroney.

    The grudge most Canadians hold against Mr. Mulroney is that he introduced the hated Goods and Services Tax in 1989, a measure that was nevertheless applauded by economists, and later by Liberals. His image suffered a serious blow in 1995, when publisher Seal Books (subsequently absorbed by Random House Canada) decided the best way to excite interest in a book by Stevie Cameron was to feature Mr. Mulroney on the cover dressed opulently in a tuxedo next to the words On the Take, even though the book contained no hard evidence that he has ever taken a bribe.

    In 1995, the RCMP jumped on the anti-Mulroney bandwagon by declaring he was a “criminal” who had “defrauded the government of Canada” by supposedly influencing the purchase of Airbus aircraft by Air Canada in 1988–an allegation for which there was no evidence. The media backed up this campaign, reporting an allegation by Zurich-based accountant Giorgio Pelossi that his employer, Mr. Schreiber, had deposited $5-million into a bank account for Mr. Mulroney as payment for his illegal actions in the Airbus purchase. This allegation was proven false within days.

    One of the characteristics of a mobbing is that the accused is made to vigorously defend himself against false allegations, and when he puts a foot wrong, he is further condemned. During his libel action against the government, Mr. Mulroney was asked by government lawyers if he had ever had any dealings with Mr. Schreiber. In his answer, Mr. Mulroney failed to mention a $225,000-$300,000 deal he had made with Mr. Schreiber for work that he would do after he left office. (Mr. Mulroney and Mr. Schreiber disagree on the amount paid.) Mr. Mulroney’s political savvy probably told him that if he revealed the Schreiber deal, the roof would cave in on him, as it has since done. Mr. Mulroney is now condemned for not revealing this arrangement, even though it had nothing to do with the issue in the libel case.

    The Parliamentary ethics committee was set up to look into the dealings between Mr. Mulroney and Mr. Schreiber and held hearings late last year, with more to come. Individual committee members have tried to piggyback unrelated criticisms of rival politicians in Quebec, Manitoba and Ottawa onto questions about Mr.

    Mulroney’s actions, suggesting the whole process is politically opportunistic. An NDP member even used some of his time to lecture the TV audience about the excesses of capitalism.

    Another frequent feature of a mobbing is a smooth transition from one allegation to another without ever clearing up the first. The Airbus allegation, which sustained the Mulroney witch hunt for 15 years, is now evaporating, and Mr. Mulroney’s inquisitors are feverishly obsessing over a new matter: the $225,000-$$300,000 payment from Mr. Schreiber, a deal Mr. Mulroney may have made in his last days in office. The only matter of substance is the reason for the payments.

    Mr. Schreiber says he paid Mr. Mulroney to lobby with his successor as prime minister, Kim Campbell, in favour of a light armoured vehicle manufacturing facility to be built by Thyssen A.G. in Montreal. (Mr. Mulroney denies this allegation.) If he did make this promise and kept it, he would have violated the 1985 code of ethics guidelines for Cabinet ministers, which he put in place himself while prime minister. But Kim Campbell was prime minister only briefly, and Mr. Mulroney had no influence with prime minister Jean Chretien. So he has likely not violated any ethics codes.

    In a typical “mobbing,” the inquisitors will investigate any matter that is likely to shame the victim, even when it is peripheral to their mandate. The ethics committee now wants to examine Mr. Mulroney’s tax records relating to the $225,000-$300,000 payment, even though Mr. Mulroney received most of the money while he was a private citizen for work that he would do as a private citizen. The Canada Revenue Agency has apparently accepted Mr. Mulroney’s submissions, so why are the tax records of this private citizen a matter of Parliamentary ethics? When a mobbing is in progress, such questions are put aside.

    The commission of inquiry, which will probably start when the ethics committee finishes its work, will cover the same ground yet again, by once more looking into the propriety of the $225,000-$300,000 payment, a virtually impossible task. How will the commission resolve the dispute between Mr. Schreiber and Mr. Mulroney over what he agreed to do, when nobody else was present at their meetings and no documents were kept? And if the commissioners do decide to believe Mr. Schreiber (a man who has already made many contradictory statements) how will they determine Mr. Mulroney’s state of mind when he allegedly made his promise to lobby Kim Campbell? Did he really mean to keep it, or not? And if the commission of inquiry does determine that Mr. Mulroney intended to break his own guidelines, perhaps even in his last days in office, but didn’t do so, is this a matter of substance on which to spend taxpayer’s money, or merely another occasion to disgrace him?

    By the time the ethics committee and the commission of inquiry have finished with Mr. Mulroney, their inquiries will have added another year or two to the 15 years that this witch hunt has already been going on. And whatever their ultimate findings, the mere process of investigation may destroy the last shreds of Mr. Mulroney’s reputation and make the disgrace of this former Canadian prime minister complete. After all, who could survive such endless, intense scrutiny into any dimension of the person’s conduct that has the potential to shame him?
    <<<<<<<

    Mobbing, Witch Hunt? In Canada? you don’t say.

    Most teling lines….

    1) One of the characteristics of a mobbing is that the accused is made to vigorously defend himself against false allegations, and when he puts a foot wrong, he is further condemned ……sounds familiar

    2) Another frequent feature of a mobbing is a smooth transition from one allegation to another without ever clearing up the first…..also familiar

    As I have said before, there are those who dont like Mulroney and just want to kick the s**t out of him and this is their supposed chance, which they’ll take again and again as long as they are allowed.

    Produce proof and I’ll change my mind. But after 15 to 20 years of this I remain unconvinced, as has the justice system to date. KHS lack of new allegations, and if there was ever a time for his lawyer to draw them out it was now, should pretty much be the wrapping on the present. This inquiry now is just about trying to figure out what part of everyone’s prior told stories are true so we can move on. After that KHS can go back to Germany to face his other legal issues. Which in my opinion should already have happened.

    I am sure parts of Mr Mulroney’s story will cause eyes to roll but real effect of that will likely be for nought, other than maintaining his currently damaged rep.

    • Peter

      Stephen
      Nice attempt to defend the indefensible – Brian Mulroney lied to Canadians ( and it wasn’t the first time) and he also took 2 million dollars from Canadian taxpayers under false pretenses. Schreiber has been very honest in what his dealings were with Mulroney but all Canadians now know Mulroney lied to Canadians about his relationship with Schreiber – where Mulroney’s lies end no one may ever know – but he has been caught with a few whoppers not only in the Schreiber affair but also in his political dealings with Joe Clark and the Conservative party. His most recent lie was that he did not tell a Conservative higher up that he no longer wanted to be a member of the Conservative party (pathological liars never quit lying). Or how about his story to Ian Macdoald that he knew the Conservatives were in deep trouble during the last election in Quebec, as he was told so by a couple Quebec artists who were over for dinner to his house, but Mulroney didn’t know who to contact in the Conservative party – what hogwash.
      http://www.nationalpost.com/todays-paper/story.html?id=1407628&p=2
      I am also wondering if his supporters think that we should be thankful that Mulroney gave the Conservatives Belinda Stronach ( she may have been good with all her money for Mulroney but we know what a disaster she was for the Conservative Party.)

    • Dot

      A link to Mathias’s Jan 24th 2008 National Post opinion piece would have been sufficient.

      So, since it was Harper who decided to have a public inquiry, and it was David Johnson who independently set the terms of reference, where do you place them on your Salem witch hunt all star list?

      Positions 1 and 2?

      • Stephen

        Harper is reacting, left to his own devices I suspect he would have left this alone, he cant win on this one. Johnson, by all accounts, is a pretty straght arrow…and geez I seem to hear all kinds of complaints that he narrowed this too much. He did what he needed to do when asked by the PM of Canada, no conspiracy. I dont have list, I am saying that you need to ask yourself why with the lack of evidence has this been pursued for so long. What is the motivation beyond pure Mulroney hatred? Or present an alternative to Mathias’ article. As Herringchoker says below, there aren’t many, if any, who know this case any better than Mathias.

        Right now, you have a comercial dispute about a consulting contract. And we are spending millions looking at that. Why?, KHS wants to avoid deportation by feeding salacious hints and half truths to an all to a breathless Fifth Estate, who are so excited that all blood has left the upper half of their bodies and are unable to think clearly. That and they are invested in the story. BTW how will you all feel if there was a receipt from the CBC showing a $40,000 payment to KHS or Pelosi for an interview?

        Dot, no need for the link, I wanted it read, since I suspected there might be some who would comment without having it on the record, so to speak.

    • knick

      The comparison between the ‘mobbing’ process on politically correct university campuses and the actions of a PM with ‘dealings with shadowy German businessman Karlheinz Schreiber’ is a strawman. The former is an example of what may or may not happen on a university campus between academics. The latter is the actual activity of a Canadian Prime Minister.

    • Mulletaur

      It’s a pity to leave the field wide open to those like you who lamely try to defend the indefensible. Fortunately, the vast majority of Canadians made up their minds about Mulroney about the time they knocked his party down to an historic two seats. All the sophistry and lying in the world will not bring his reputation back. Knock yourself out, buddy – the facts of the case are clear, and the jury decided long ago.

      • Stephen

        Sure Mulletaur…whatever. I agree with you his reputation was sullied long ago for a host of reasons. But I guess I happen to give a damn about how the justice system works. I find it objectionable that this continues for the length of time that it has, let alone the money.

        So if the jury is out, why are we still going through the same old hoops if not to satisfy some kind of ritual bloodlust?

        But there is no helping you here, you will continue to assert that “it” is proven and it just isnt the case. Please lay out the case rather than assert it, what is the proof? You want to believe it, thats fine. I dont break my kids beliefs in tooth fairies, Santa Claus or Aliens either. But if you wanted a serious discussion about justice and due process then you would be asking the same questions.

        You hate him, thats fine, thats your right. I don’t hate him, but after being willing to believe he did accept commissions, and sure it would be proven years ago that he was guilty I came to the conclusion there was nothing there and that alternative explainations were required to explain the perpetual attempts to lynch him.

        • Mulletaur

          Justice happens in a criminal court, not a commission of inquiry. As I have pointed out to you before, if you want vindication for Mulroney, you should be calling for the police investigation, which was interrupted by the RCMP’s bad wording on a international rogatory letter, to continue. Only the police backed by the judicial authorities have the investigatory powers required to get to the bottom of this matter. But you aren’t calling for anybody to get to the bottom of this matter – you and the rest of Mulroney’s legal and public relations team have declared him innocent no matter what the outcome of this inquiry.

          Here are a few questions which have not been answered adequately yet :

          1. What were the business and financial dealings between Mr. Schreiber and Mr. Mulroney?
          2. Was there an agreement reached by Mr. Mulroney while still a sitting prime minister?
          3. If so, what was that agreement, when and where was it made?
          4. Was there an agreement reached by Mr. Mulroney while still sitting as a Member of Parliament or during the limitation periods prescribed by the 1985 ethics code?
          5. If so, what was that agreement, when and where was it made?
          6. What payments were made, when and how and why?
          7. What was the source of the funds for the payments?
          8. What services, if any, were rendered in return for the payments?
          9. Why were the payments made and accepted in cash?
          10. What happened to the cash; in particular, if a significant amount of cash was received in the U.S., what happened to that cash?
          11. Were these business and financial dealings appropriate considering the position of Mr. Mulroney as a current or former prime minister and Member of Parliament?

          If those questions were already answered, Prime Minister Harper would not have called an inquiry, risking opening a rift within his party. Nobody was baying for blood, neither was there any particular public demand or appetite for an inquiry. Harper called the inquiry because it was the right thing to do in the circumstances. You should accept the Prime Minister’s judgement in this regard.

  • herringchoker

    I always thought that Mathias (who knew more about Airbus than any other journo) showed real class with that article.

    BTW, in case I missed it, did KH ever reveal his “seven scandals in one”?

  • Bonnie N

    The only way that the truth will come to a conclusion in this inquiry is if KHS and BM tell us what the money was for really.

    If you are a Mulroney fan you believe it’s was for the famous pasta deal.

    If you love the often paranoid KHS the deal was for Bearhead.

    I never believed either story and here’s the rub – neither man has any motive to tell the truth because if the truth is this was for Airbus both would end up in jail.

    Kady, I fear you are wasting you blogging talents and Judge Oliphant is wasting his judicial knowledge on a case that will never come to light.

    • Stephen

      Bonnie you are an oasis of sanity

  • Wascally Wabbit

    Dear Stephen -

    We will no doubt be hearing shortly talking points that suggest that David Johnston left the scope of the inquiry far too wide – and it’s not fair to the former PM or to the soon to be former PM..but I digress!

    Kady – 3:13:54 PM
    Okay, first, a confession: I completely forgot to rise when the judge left at the last adjournment. I apologize to all and sundry, and accept my punishment, whatever it may be. (I was lost in liveblogging and didn’t even look up, not that this is an excuse of any kind.)

    I looked it up in a Papal Bull…

    Your penance is three Hail Mary’s and three curtseys the next time Justice Oliphant enters while in your presence!

  • http://carnewsandviews.com jwl

    You are a godsend, Kady. I had no desire to keep track of these hearings but your posts have made the week’s events manageable to keep up with. Thank you.

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