Ex-Canadian PM testifies about scandal

TORONTO (AP) — Former Prime Minister Brian Mulroney denied Thursday he received kickbacks from a German arms dealer while in office, a scandal that has further sullied the reputation of an already unpopular conservative Canadian politician and could result in legal action against him.

Mulroney testified before a parliamentary committee investigating the matter that his two biggest mistakes in life were agreeing to meet with Karlheinz Schreiber and later agreeing to accept a cash payment of $225,000 in Canadian dollars from the businessman after he left office.

He said he accepted the first cash-stuffed envelope a month after he left office and that it was earmarked for lobbying world leaders on behalf of Thyssen Industries, a major client of Schreiber.

“When I look back on it today, I realize I made a serious error of judgment in receiving a payment in cash for this assignment even though it was decidedly not illegal to do so,” Mulroney said.

The committee is investigating whether Mulroney, who served as prime minister from 1984 to 1993, struck a deal with Schreiber while still in office — a violation that could have legal ramifications.

Mulroney said he never claimed the $225,000 on his income taxes until Schreiber was arrested in 1999 — six years after he received his first payment.