Elmer MacKay - Controversy

Controversy

MacKay is a longtime associate of former Prime Minister Brian Mulroney and German businessman Karlheinz Schreiber, who were negotiating the purchase of Airbus aircraft for Air Canada in 1988. As a result of subsequent Royal Canadian Mounted Police charges against Mulroney for accepting kickbacks on this transaction, a federal inquiry was launched, which found that Mulroney had accepted at least $300,000 in cash from Schreiber after the transaction. Mulroney's defence stated these payments were in return for consulting services. Documents show that MacKay drafted a letter that was eventually released by Schreiber as evidence that Scheiber's and Mulroney's business dealings were legitimate. It is not known why MacKay drafted a letter that was later offered as evidence and supposedly written by Schreiber.

Evidence tabled at the Airbus inquiry included entries in Schreiber’s diary that indicated Schreiber had made phone calls to MacKay on the same dates during which the first two Airbus meetings were held between Mulroney and Schreiber. MacKay has confirmed he had lunch with Mulroney and Schreiber the day of the third meeting. In addition, Schreiber’s diary shows he made phone calls to MacKay on two days in July 1993 when he made banking transactions in Switzerland to obtain money to pay Mulroney.

Although MacKay was closely involved with Mulroney and Schreiber during the time of the Airbus purchases, he has never been formally charged for wrongdoing in the scandal.