Airbus figure loaned money to former Alta. deputy premier: [FINAL Edition]RUSNELL, CHARLES. Edmonton Journal [Edmonton, Alta] 16 Dec 1995: A.3.Turn on hit highlighting for speaking browsers by selecting the Enter buttonShow highlightingAbstract (summary)TranslateAbstractFormer Alberta deputy premier Hugh Horner received a $150,000 loan arranged by a German-Canadian businessman who is now at the centre of the Airbus kickback investigation.

While transport minister in Premier Peter Lougheed's cabinet, Horner took the money in the form of a mortgage arranged by Karlheinz Schreiber on Nov. 16, 1978.

Schreiber is now the central figure in what Canadian justice officials and the RCMP have alleged was a scheme to funnel money through Swiss bank accounts to pay off Ottawa lobbyist Frank Moores and former Prime Minister Brian Mulroney in relation to the sale of Airbus jetliners to Air Canada.

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Former Alberta deputy premier Hugh Horner received a $150,000 loan arranged by a German-Canadian businessman who is now at the centre of the Airbus kickback investigation.

While transport minister in Premier Peter Lougheed's cabinet, Horner took the money in the form of a mortgage arranged by Karlheinz Schreiber on Nov. 16, 1978.

Schreiber is now the central figure in what Canadian justice officials and the RCMP have alleged was a scheme to funnel money through Swiss bank accounts to pay off Ottawa lobbyist Frank Moores and former Prime Minister Brian Mulroney in relation to the sale of Airbus jetliners to Air Canada.

Although Horner did not retire from the government until Nov. 7, 1979, a year after he received the loan, he does not see anything wrong with accepting the loan.

``As far as I'm concerned it was a straightforward loan,'' the retired physician, now 70, said Friday from his home in Barrhead. ``I put up my medical centre and some land as collateral along with a personal guarantee.''

Although Horner insists the nature of the loan was not extraordinary, he says he only repaid about $100,000 of the debt because his creditors simply stopped collecting.

He said he went several months in 1985 without making a payment and then lost contact with the lenders.

``I don't know why (they stopped collecting),'' Horner said. ``I would have liked to settle it in the mid-'80s but I couldn't get a hold of anybody.''

Horner's lawyers contacted law firms used by Schreiber and his Swiss investment partner Barbara Flick, but were unable to resolve the matter. In 1993, an Edmonton court approved Horner's application to have the debt extinguished.

Horner said he was introduced to Schreiber by former Alberta trade minister Horst Schmid during a trip to Germany in the mid-1970s. Horner, then transportation minister, said he was meeting in Munich with the giant German conglomerate Siemens about rail cars for light rail transit systems being planned for Edmonton and Calgary.

Schmid was unavailable for comment Friday.

Horner was experiencing financial difficulties at the time. He was behind in payments for his ranch and needed a loan until he could sell his medical clinic in Barrhead, which is about 120 km northwest of Edmonton.

Horner said he never knew until recently that the money actually came from Schreiber and his business partner. He said he assumed Schreiber had arranged for the loan through a Swiss bank.

``He (Schreiber) suggested we go to a Swiss bank because it would be cheaper (than interest rates at Canadian banks) and we did,'' Horner said. ``He never offered me a loan.''

Although Horner said he had no knowledge that the money had come from Schreiber, he told the Toronto Star Thursday that he felt he had repaid the debt by performing consulting work for Schreiber.

``I never received any expenses and I considered that as payment, if you like,'' he said.

And Schreiber's former accountant, Giorgio Pelossi, told the Star that Schreiber did not want to make a direct loan to Horner, nor have one of his companies make the loan. Pelossi said the money was provided to Hornerthrough a cover, a ``nominee'' named Emilio Grossi, who was the elderly uncle of a banker friend.