Evidence of meeting #16 for Access to Information, Privacy and Ethics in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was money.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Giorgio Pelossi  As an Individual
Clerk of the Committee  Ms. Erica Pereira

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

This contract provided for a commission that would be given by Airbus to IAL in the event aircraft were sold to Air Canada. Is that correct?

9:25 a.m.

As an Individual

Giorgio Pelossi

Yes, that is correct.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

How much was the commission?

9:25 a.m.

As an Individual

Giorgio Pelossi

Oh, the amount varied. There was a chart showing various percentages. It depended somewhat on the number of aircraft involved. It also depended on whether or not spare parts were involved, for example. I no longer remember the exact details, but there were a number of different percentages.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

For 34 aircraft, do you remember...

9:25 a.m.

As an Individual

Giorgio Pelossi

I would tell you that right away, because I had a chart drawn up by Airbus. The amount was about $30 million US.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

It was $30 million, in US funds, of course.

9:25 a.m.

As an Individual

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

So for 34 aircraft, I think you spoke about a commission...

9:25 a.m.

As an Individual

Giorgio Pelossi

With the total being $30 million, that amounts to about $800,000 for each aircraft, yes.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

I calculated that if the percentage were 2 %, the total would be $36 million Canadian of the $1.8 billion. The figure would be in that range.

9:25 a.m.

As an Individual

Giorgio Pelossi

A little lower. I think it was about 1.5 % of the total amount.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Were these amounts to be paid in full to Mr. Schreiber, or was some of the money supposed to go to other individuals?

Giorgio Pelossi

He always told me that these amounts were supposed to be divided as follows: 50 % for Canadians and 50 % for himself and Mr. Strauss.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Mr. Strauss who was the president of Airbus?

9:25 a.m.

As an Individual

Giorgio Pelossi

Yes, he was the president of Airbus and the prime minister of Bavaria.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

So Mr. Strauss was receiving a commission on the aircraft he sold to Canada. Is that correct?

9:25 a.m.

As an Individual

Giorgio Pelossi

He should have received the commission, because Mr. Schreiber always told me that this was for the assistance he had provided. Otherwise, he would have never received a contract of this type from Airbus. The second reason was that Mr. Strauss had lost $2 million in Canadian funds in real estate deals in Alberta.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

In any case, what we are particularly interested in is the Canadian side of the transaction.

Did he give you the names of the people who were supposed to receive these payments in Canada?

9:25 a.m.

As an Individual

Giorgio Pelossi

In this case, he did. He had always told me that 25 % would be for Mr. Moores and 25% for Mr. Mulroney.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

So, 25 % of $18 million.

9:25 a.m.

As an Individual

Giorgio Pelossi

It was $7 million and change.

I know he never paid it, but... That is, I know it now.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

How was this amount of money supposed to have been paid?

9:25 a.m.

As an Individual

Giorgio Pelossi

Initially, I thought he was going to put the money into his account, but apparently he deposited very little or no money into his account. He was accustomed to making these payments in cash.

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

So payments of this type, such as the amounts paid to Mr. Strauss and Mr. Mulroney, would have been paid in cash.