Mulroney's Bofors

RUMOURS about European firms paying huge bribes to politicians and other intermediaries to smoothensales of their products surface periodically, but more often than not they peter out for lack of hard evidence. But while the ongoing bribery scandal in Canada involving a European company (Airbus Industrie) and politicians (notably former prime minister Brian Mulroney), too, might eventually end in a scurrilous whimper, for the moment there are enough intriguing and murky clues to power a hard-headed investigation.

The pay-off allegations involve the sale of 34 Airbus aircraft to Air Canada in 1988. The Canadian contract—the largest civilian aircraft order in Canadian history—had sparked off a fierce bidding war among major aircraft manufacturers, the European consortium's Airbus Industrie, the Boeing Company of Seattle and McDonnell Douglas of St Louis. Air Canada's decision to accept a bid from Airbus Industrie over a rival offer from Boeing, whose 737, then and now, is the world's bestselling airliner, was a major North American success for Airbus. The European consortium of French, British, German and Spanish firms has for years been attempting to replace Boeing as the dominant international player in the jetliner market.

Rumours that heavy lobbying and multi-million dollar commissions had accompa-nied the Airbus deal surfaced soon after, but official inquiries failed to unearth substantive leads. Earlier this year, however, a Canadian Broadcasting Corporation news programme reported that Airbus could have paid commissions to Canadian politicians through Swiss bank accounts. The investigation was re-opened, and two months ago the Canadian government made a formal requestto the Swiss authorities for help in the inquiries. It is believed that commissions to the extent of $20 million were paid. Air Canada was then still a nationalised carrier.

At the heart of the allegations is Mulro-ney, who was prime minister when the deal was signed. The alleged modus operandi: Air-bus signs a deal with a Lichtenstein-based shell company, IAL Leasing, which is controlled by German-Canadian businessman Karl-Heinz Schr-eiber, who has connections with Mulroney's Conservative government; Schreiber helps open Swiss bank accounts for two Cana-dian politicians, one of whom is Mulroney, in return for their influence in securing the contract with Air Canada.

But Airbus and Mulroney have vehemently denied these allegations. The former prime minister has in fact scored a few points himself: he has filed a $50-million lawsuit against the Canadian government for damaging his reputation by naming him in its request for Swiss assistance.

However, last week a mystery man surfaced, claiming that he had been present when Schreiber and Frank Moores opened two Swiss bank accounts. Moores is an Ottawa lobbyist, politician and long-timefriend of Mulroney. The mystery man, subsequently revealed to be Georgio Pellosi, a former employee of Schreiber, said both accounts were in Moo-res' name, but one was code-named Devon. Pellosi says Schreiber later told him that Devon referred to Mulroney; but he cannot say for certain if money did make its way into Mul-roney's account.

Meanwhile, questions have been raised about how Mulroney managed to get hold of the Canadian government's letter to the Swiss authorities in which he is named, along with Schreiber and Moores. Account-holders would have known about the investigation: Swissbanks are required to notify them if foreign governments seek to have their accounts frozen. Does this mean Mulroney held an account? No, said a spokesman for Mulroney, after days of silence. Schreiber, who does hold an account, had tipped off Mulroney about the letter, it was stated. The former prime minister commissioned an English translation of the German document. Evidently, it was this translation that was leaked to the press, enabling Mulroney to file for libel damages.

No doubt, allegations and denials will fly in the next few months. What the Swiss authorities will find when they complete their investigation by Christmas is anybody's guess. But one thing is certain. In the absence of laws preventing European firms from paying commissions, unlike North American firms, it will not be long before the next scandal breaks out.바카라 웹사이트