Canada

Ontario court rules Schreiber can be extradited

A ruling by Ontario's top court paves the way for businessman Karlheinz Schreiber to be extradited to Germany to face tax evasion and other charges.

A ruling by Ontario's top court paves the way for businessman Karlheinz Schreiber to be extradited to Germany to face charges of bribery, tax evasion, fraud and breach of trust.

The decision by the Court of Appeal on Wednesday rejects Schreiber's challenge of the extradition and an application for a judicial review of the justice minister's October 2004 decision to surrender him.

"These arguments have been rejected by prior decisions of this court," the decision says. "Extradition is meant to be expeditious. This case has proceeded at a snail's pace."

Schreiber is a longtime Canadian citizen who has worked as a lobbyist and consultant. He was involved in the so-called Airbus affair, referring to mid-1990s allegations of secret commissions paid to members of the Brian Mulroney government in exchange for Air Canada's purchase of a large order of Airbus jets.

Mulroney subsequently sued for libel and, under oath, denied any dealings with Schreiber. Mulroney received a government apology and a $2-million settlement.

Last month, CBC's The Fifth Estate reported that Schreiber gave Mulroney cash payments totalling $300,000 shortly after the former prime minister stepped down.

The cash had been withdrawn from a secret Swiss account code named "Britan." The account was connected to a Liechtenstein shell company set up to receive secret commissions from Airbus Industrie and Thyssen Industries.

Canadian authorities arrested Schreiber in Canada on Aug. 31, 1999 for extradition to Germany.

He has been on bail since shortly after his arrest, as his lawyers argued that extradition would violate their client's charter rights.

Schreiber faces charges in Germany of evading income tax on more than $45.6 million Cdn.

The charges stem from a deal for the sale of German army tanks from arms manufacturer Thyssen AG to Saudi Arabia. German authorities allege Schreiber and others at Thyssen defrauded Saudi Arabia in the course of the deal.

Schreiber can seek leave to appeal to the Supreme Court of Canada.