The Mounties have launched a review into new claims made by European businessman Karlheinz Schreiber into his alleged dealings with former prime minister Brian Mulroney.
A spokesperson for the RCMP says the review will be done to determine if there should be a formal investigation.
The police review follows on the heels of an announcement by Prime Minister Stephen Harper on Tuesday that the government would launch a full public inquiry into the so-called Mulroney-Schreiber affair.
Mulroney had asked for the public inquiry, and told a Toronto audience he welcomed Harper's decision.
"I want to tell you here tonight that I, Martin Brian Mulroney, 18th prime minister of Canada, will be there before the royal commission with bells on, because I have done nothing wrong and have absolutely nothing to hide," he said.
Harper told the House of Commons that the formal inquiry will come after an independent investigation can outline its parameters.
"We will be asking that the independent third party, who will be named shortly, give us terms of reference for a full public inquiry," he told the House on Tuesday.
Liberal Leader Stephane Dion fired back that Harper should "call for a full public inquiry now."
Harper replied that the "leader of the opposition has whipped himself up into that question and failed to listen to the previous two answers -- that's precisely what the government will be doing."
On Friday, Harper said that he would appoint an independent adviser to look into claims by Schreiber that he paid Mulroney $300,000 in cash after he stepped down as Prime Minister.
During question period Tuesday, opposition members attacked the prime minister and his staff over what they said was a slow response into the matter.
Dion said the government has had letters and documents for months regarding alleged improprieties in the business dealings between Schreiber and Mulroney.
"Yet they did nothing for months. Why?" asked Dion.
The NDP linked the Harper government with the Mulroney administration, alleging the situation was going "back and forth, from side to side, scandal after scandal."
After news of Schreiber's affidavit grabbed headlines on Friday and throughout the weekend, Mulroney shot back on Monday with a demand for a full public inquiry. He has denied accusations that he did anything wrong in his dealings with Schreiber. None of the accusations has been proven in court.
Schreiber extradition
In the 1990s, Mulroney won a $2.1 million settlement from the government after he was connected publicly in police documents to an investigation looking into the sale of Airbus jets to Air Canada.
Schreiber is facing deportation to Germany this week. He faces a variety of tax and fraud accusations in Europe.
In an interview on CTV's Canada AM Wednesday, Justice Minister Rob Nicholson said he would not discuss federal extradition matters.
"It's a judicial proceeding and the decision is going to be handed down tomorrow and I think it's fair to hear what that decision is," said Nicholson.
"The extradition proceedings have gone on for quite some time and any letters, correspondence, evidence, briefings or anything like that relating to the extradition is a part of the extradition and again I don't comment on that."
Under Canadian law, the final decision on extradition rests with the justice minister.
Meanwhile, late last week it was learned that Schreiber had apparently sent letters to top ministers in government for more than a year. The prime minister denied ever seeing the letters, in which Schreiber also called for an inquiry.
Liberal House Leader Ralph Goodale said his party recently handed over letters it received from Schreiber to the RCMP, but did not reveal their content.
"(Liberal Leader Stephane Dion) received copies of this material a number of days ago, and instantly said this is material that needs to be put in the hands of the RCMP," he told CTV's Mike Duffy Live.
According to The Canadian Press, the Liberal party began examining the letters on Nov. 5 and sent them to the RCMP on Nov. 8.
Harper rejected the idea of a fully inquiry into the matter only a few weeks ago. He said he did not want to start a series of investigations into former prime ministers.
He changed his mind after Schreiber said in court documents last week that Mulroney had said he would speak to Harper about the Airbus affair during a private outing last year. At a press conference on Friday, Harper denied that the matter came up during their retreat at Harrington Lake in 2006.
With reports from CTV's Robert Fife and Lisa LaFlamme
