Gov’t. Won’t Stand In Way Of Karlheinz Schreiber In Canada As He Prepares To Testify

Karlheinz Schreiber left a Toronto detention centre Wednesday for what promises to be a momentous event – testimony before a House Ethics Committee on his alleged $300,000 payment to former Prime Minister Brian Mulroney.

At first it looked like his long awaited deposition wouldn’t happen, since the German-Canadian businessman faces extradition back to his native country on fraud, tax evasion and bribery charges. He’d threatened not to cooperate with the panel at all if he’s sent back.

But there’s a new wrinkle that could change everything. Justice Minister Rob Nicholson, under intense pressure to keep Schreiber here for all the coming probes into the growing scandal, now says he won’t oppose the star witness’s appeal to stay his latest exit order. He was scheduled to be put on a plane this Saturday – two days after his appearance before the committee.

His lawyers are due in court on Friday and now that the federal objection is gone, most expect he’ll be allowed to remain as long as it takes for his final appeal to reach the Supreme Court of Canada. And that could be a while. It’s not clear how this latest development will affect Schreiber’s appearance at a public inquiry, which has yet to be officially set.

“On behalf of the Attorney General of Canada, I am prepared to consent on strict terms to a judicial stay of the surrender order pending the outcome of your application for leave,” to the Supreme Court, a letter from Nancy Denison, senior counsel for the Justice Department, reads.

Nicholson had originally refused to bow to Opposition demands that he delay the extradition but had a change of heart amid heavy criticism.

Mulroney is expected to take the stand next week and provide equally explosive testimony.

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