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CRIME

Karlheinz Schreiber: the man with the suitcase full of cash

He has brought shame to politicians on both sides of the Atlantic and now German-Canadian businessman Karlheinz Schreiber is back in Germany to face charges of tax-evasion, fraud and corruption.

Karlheinz Schreiber: the man with the suitcase full of cash
Photo: DPA

Schreiber is a key figure in the slush-fund scandal that disgraced former Chancellor Helmut Kohl’s conservative Christian Democrats (CDU). But in his adopted home of Canada, he also brought former Prime Minister Brian Mulroney into ill repute. Now, after a decade-long legal battle, he has been extradited to Germany.

In Canada, Schreiber lived life well, enjoying residences in the business capital Toronto and the federal capital Ottawa. He developed a reputation as a man who loved hobnobbing with power brokers in both Canada and Germany.

But like the life he left behind in Germany, Schreiber flew out of Canada on Sunday under a cloud of suspicion and scandal. On July 28, the Oliphant commission held its final day of hearings in which Schreiber testified that he gave Mulroney €196,000 (CAD$300,000) to lobby on behalf of Thyssen Industries to the Canadian government to build an armoured vehicle plant while the Progressive Conservative leader was still in power. Mulroney claims the funds he received, €147,00 ($225,000 CAD) changed hands shortly after he left office in 1993.

As part of the agreement to get Schreiber to testify, Canadian officials said the weapons-lobbyist turned pasta dealer could stay in the country he’s been a citizen of since 1982 until the end of the hearings. At the weekend, a last-ditch effort hearing to halt the extradition was held and denied. He was met by German police as he landed in Munich on Monday morning.

Arrested in 1999 by the Canadian authorities, the 75-year-old will now face prosecution for charges related to a slush-fund scandal that rocked Kohl’s conservatives in 1999.

After enjoying successful sales careers in his hometown of Hohegeiß im Harz and Braunschweig, Schreiber moved on to Munich, where he met his business mentor Franz Josef Strauß, who went on to become leader of the Christian Social Democrats, Bavarian sister-party to the CDU.

Shortly after that meeting, Schreiber’s career in weapons sales took off. He managed contracts for helicopters, Airbus planes and armoured personnel carriers for Germany and other countries. He mediated ties from steel giant Thyssen and the Bavarian state government and the federal intelligence services based in the Munich suburb of Pullach, among other contracts.

However, between his legitimate dealings, an investigation based in Augsburg into the CDU’s political finances during the 1990s put the heat on Schreiber. Under investigation for allegedly exchanging a briefcase containing €511,000 (1 million German Marks) with former CDU treasurer Walter Leisler Kiep in a Swiss parking lot in August 1991, Schreiber emptied all of his German bank accounts and used his Canadian passport to settle permanently in Toronto in 1996.

But his past caught up to him in 1999, when Kiep was arrested in Germany. The Canadian authorities arrested Schreiber on a German warrant. Tracing Schrieber’s briefcase of money into the CDU’s party coffers, Kiep as well as two Thyssen managers and Ludwig-Holger Pfals, a former liaison to the defense ministry were all found guilty of corruption.

Another €51,000 (DM100,000) donation made by Schreiber to the CDU also forced the then party leader Woflgang Schäuble to resign in 2000, paving the way for current Chancellor Angela Merkel to take the helm of Germany’s conservatives by disavowing the shady dealings of the Kohl era.

The Augsburg investigation uncovered millions in illegal donations squirreled away in slush funds under Kohl’s leadership in the 1990s. Kohl initially denied knowledge of the accounts, putting the scheme entirely on Kiep. However, in a teary television appearance weeks after Kiep’s arrest, Kohl admitted he knew about the illegal donations. But he stubbornly refused to name the donors, claming their privacy was protected by his word of honour.

After landing in Munich on Monday, Schreiber was whisked away to prison in nearby Augsburg.

Whether his arrival in Germany will now produce any new revelations about the CDU’s misdeeds under Kohl is unclear, but he claims he has become an unwilling participant in the upcoming German election. The vote takes place on September 27. Schreiber’s trial date is still pending.

If found guilty on all charges, Schreiber faces 15 years in jail.

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CRIME

Suspect held in latest attack on German politicians

German police on Wednesday arrested a 74-year-old man suspected of hitting a former mayor of Berlin in the head, the latest in a rash of assaults against politicians in Germany.

Suspect held in latest attack on German politicians

The German government condemned the “growing despicable attacks”, stressing that the “climate of intimidation, of violence” was something that could not be accepted.

Chancellor Olaf Scholz blasted the attacks against politicians as “outrageous and cowardly”, stressing that violence did not belong in a democratic debate.

Franziska Giffey was at a library on Tuesday afternoon when the suspect came up from behind her to slug her in the head and neck with a bag containing hard objects, police said.

Giffey, who is now Berlin state’s economy minister and a member of Chancellor Olaf Scholz’s Social Democratic Party (SPD), was treated in hospital for light injuries.

The detained suspect was previously known to investigators over “state security and hate crimes”, said police, adding that they were investigating the motive of the attack.

Prosecutors were also considering if the man should be sent to psychiatric care because of indications that he might be mentally ill.

Giffey said she was “feeling well after the initial scare”. But she was “concerned and shaken about a growing ‘free wild culture’ in which people who are engaging politically in our country are increasingly exposed to attacks that are supposedly justified and acceptable.

“We live in a free and democratic country, in which everyone can be free to express his or her opinions,” she wrote on X, formerly Twitter.

“But there is a clear line — and that is violence against people,” she added.

Berlin’s current mayor Kai Wegner said anyone who attacked politicians was “attacking our democracy.

“We will not tolerate this,” he added, vowing to examine “tougher sentences for attacks against politicians”.

Nazi salutes

A European member of parliament, also from the SPD, had to be hospitalised last week after four people attacked him as he put up EU election posters in the eastern city of Dresden.

Matthias Ecke, 41, needed an operation for serious injuries suffered in the attack, which Scholz denounced as a threat to democracy. Four suspects, aged between 17 and 18, are being investigated over the incident.

READ ALSO: Teenager turns self in after attack on German politician

All four are believed to have links to the far-right group known as “Elblandrevolte”, according to German media.

Dresden has been a hotspot for assaults against politicians, with another case reported on Tuesday.

S-Bahn in Dresden

An S-Bahn train drives through Dresden. Photo: picture alliance/dpa | Robert Michael

A politician, identified by police only as a 47-year-old from the Green party, was threatened and spat on. She was putting up campaign posters for the European elections when a man came up, pushed her to the side and tore down two posters.

READ ALSO: Germany unveils new plan to fight far-right extremism

He insulted and threatened the politician, while a woman joined in and spat on the victim, police said. Officers arrested both suspects, police added, identifying them as a 34-year-old German man and a 24-year-old woman.

Both were in a group standing at the area and who had begun making the banned Hitler salute when the politician began putting up the posters.

According to provisional police figures, 2,790 crimes were committed against politicians in Germany in 2023, up from 1,806 the previous year. Nevertheless, that was down from the 2,840 recorded in 2021, when the last general elections were held.

By Hui Min Neo

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