Swiss Authorities Investigate Allegations of Payoffs in Airbus Deal

Strategic Insights -

The Swiss government is considering Canada's request for help in investigating allegations of payoffs in the 1988 sale of Airbus jets to Air Canada. The allegations name former prime minister Brian Mulroney and Newfoundland premier Frank Moores as recipients of secret commissions. The Swiss authorities have taken the request seriously, possibly due to Mulroney's international stature, according to a Canadian expert in Swiss banking law.

Key Takeaways:

  • The Swiss government received a request for assistance from the Canadian government on September 29, 1988, to investigate allegations of payoffs in the Airbus deal.
  • The request was treated differently because one of the individuals named is former prime minister Brian Mulroney, a Canadian expert in Swiss banking law said.
  • The Swiss authorities have ordered the freezing of bank accounts and records related to Mulroney and Moores, and have also seized the contents of safety-deposit boxes registered in their names.
  • The Swiss government requires some sort of judicial underpinnings, such as a grand-jury verdict or a preliminary hearing, before acceding to a foreign request.
  • The investigation will be handled by an investigating magistrate, who will decide whether the documentation handed over by the bank contains evidence of a crime.
  • The magistrate's finding will be reviewed by others within the justice ministry to determine whether the information should be released to Canada.
  • The bank has the right to appeal the order before the Swiss Federal Supreme Court within 30 days of receiving notice.
  • Account holders and non-accused third parties may also have rights to appeal within 30 days of notification.
  • The entire process can take several months or even years, depending on the complexity of the case and the level of opposition.

Statistics:

  • $1.8 billion: The total cost of the Airbus plane purchase by Air Canada in 1988.
  • 2 : The number of bank accounts ordered to be frozen.
  • 34117: The account number of the bank account coded "Devon".
  • 30 days: The timeframe for the bank to appeal the order and for account holders and non-accused third parties to notify and appeal the order.
  • 3 years: The length of time it can take for a similar case to be resolved, according to the Canadian expert.

Sources:

  • "The Globe and Mail" - Sept. 29, 1988 (date of the request)
  • Swiss Federal Police Department - Oct. 3, 1988 (receipt of the request)
  • Swiss Federal Public Prosecutor's Office - Oct. 24, 1988 (order to freeze bank accounts and records)
  • Peter Lehmann, Swiss Federal Public Prosecutor's Office Spokesman - (declined to comment specifically on the case)