Report of the Independent Advisor into the Allegations Respecting Financial Dealings Between Mr. Karlheinz Schreiber and the Right Honourable Brian Mulroney

Table of Contents

Schedule 3

Contradictions and Inconsistencies in the Evidence of Messrs. Schreiber and Mulroney

The testimonies of Messrs. Schreiber and Mulroney before the Ethics Committee have made public many previously unknown facts about the dealings between them. Their statements have also uncovered several discrepancies in the events surrounding the cash payments received by Mr. Mulroney.

The Harrington Lake Meeting

Messrs. Schreiber and Mulroney disagree on what was discussed at their Harrington Lake meeting. Mr. Schreiber stated that at the Harrington Lake meeting, Mr. Mulroney agreed to perform services for him after leaving office. Mr. Mulroney, however, claimed that he entered into the deal to work for Mr. Schreiber after stepping down as prime minister, but while he was still a sitting Member of Parliament.

The Amount of Cash Exchanged and the Scope of the Retainer

Mr. Schreiber stated in both his November 7, 2007 affidavit and in his testimony before the Ethics Committee that he paid Mr. Mulroney a total of $300,000, in three installments of $100,000, to obtain approval for the Bear Head project in Canada. Mr. Mulroney stated that Mr. Schreiber paid him $225,000, in three installments of $75,000, to promote Thyssen's light armoured vehicles internationally.

According to paragraph 36 of Mr. Schreiber's November 7, 2007 affidavit, he approached Mr. Mulroney in late 2002 to request the latter's assistance in obtaining "private or government commitments" for the expansion of Mr. Schreiber's pasta manufacturing and franchise business in Ontario and across Canada. Mr. Mulroney did not contradict the above details in his testimony, but he did claim that the promotion of Mr. Schreiber's pasta business did not form part of the original business agreement reached in 1993. It remains unclear when, and to what extent, the promotion of Mr. Schreiber's pasta business became part of the agreement between Messrs. Schreiber and Mulroney.

Mr. Mulroney stated that he hesitated before accepting the cash from Mr. Schreiber at their first meeting in Mirabel, Quebec - Mr. Schreiber told him, "I am an international businessman and I only deal in cash. This is the way I do business." Mr. Mulroney conceded that accepting the cash was a mistake, and stated that had he been offered a cheque in place of cash as a form of payment he would have certainly accepted it.

Services Rendered

At the Pierre Hotel meeting, Mr. Mulroney claimed that he gave Mr. Schreiber an extensive report on his work promoting Thyssen's products abroad, which had included meetings with officials in China, Russia, Europe and the United States. According to Mr. Mulroney, Fred Doucet was also present at the Pierre Hotel meeting. Mr. Schreiber asserted that Mr. Mulroney rendered no services in exchange for the payments.