Rüstungsfirmen wegen mutmasslichen Schmiergelder untersucht

“Razzias Searched Weapons Manufacturers for Evidence in Bribe Accusations.” Bremen prosecutors confirmed police had searched the offices of two German arms manufacturers on 23 Aug 2013 for evidence in corruption charges brought against the firms. Rheinmetall Defence Electronics and Atlas Elektronik are being investigated for paying bribes to Greek politicians and bureaucrats and for not paying taxes in sales of German submarine equipment to Greece.

Süddeutsche.de said it’s thought each firm paid Greek officials about 9 million euros in bribes or “Schmiergeld,” shmear money, lubrication funding.  The bribery charges go back a long way in time, in Atlas Elektronik’s case to before the current owners’ purchase of the firm. Payments were made to a British “letterbox” company that belonged to a Greek company.

Despite the British background in this investigation, there’s a long history of corruption in German submarine sales to Greece according to Süddeutsche.de. Munich prosecutors have been investigating it for years because an Essen company Ferrostaal caught paying bribes to Athens used to be owned by MAN SE, a transport vehicles manufacturing company based in Munich. Most of the extra Ferrostaal submarines sold to Greece via the shmear were built at ThyssenKrupp shipyards, and Bremen prosecutors say Ferrostaal involvement hasn’t been ruled out yet in the current investigation of Rheinmetall and Atlas.

Prosecutors of multiple German districts have known about these problems for years but reportedly only found enough evidence to take action in 2012. For example, the Süddeutsche wrote that EADS (now Airbus) and ThyssenKrupp are joint owners of naval electronics specialist Atlas Elektronik. After buying the company in 2006 from the British firm BAE, they stopped payment of the bribes in 2007, bribes that had apparently started with a consultant contract in 2002. Atlas informed prosecutors about it in 2010 but nothing happened until further info was received from a 2012 tax audit at Rheinmetall Defence Electronics, they said. Rheinmetall denies all bribery charges.

(RISS toongs firm men   vay gen   moot MOSS lichh en   SHMEAR geld ah   oont ah ZOOCHHT.)

Schienenkartell

“Rails cartel.” Troubled steel giant Thyssen-Krupp and three other firms are defendants in a lawsuit by the Deutsche Bahn for railroad construction price-setting collusion said to have lasted almost a decade. Deutsche Bahn (German Rail) is seeking 550 million euros after, it said, trying for several months to reach an out-of-court settlement. Its lawsuit is said to have good chances, in particular because somehow the suit suspends the statute of limitations for the offenses, for which these companies were fined ˜100 million euros last summer by the German Federal Cartel Authority (Bundeskartellamt), which criticized the Deutsche Bahn’s lax procedures. Tagesschau.de reports that the Deutsche Bahn has often been the victim of rail cartels. The F.A.Z. called them “nearly a historical normality.” In 2012 Thyssen-Krupp announced losses of 5 billion euros after failures of e.g. investments in steel processing plants in the USA and Brazil; it fired half its board in consequence.

Update on 23 Jul 2013: The Bundeskartellamt announced it has issued a second set of fines in this matter totalling ˜97 million euros to eight companies, moving its fines total for this rail cartel to ~230 million euros. This second set of fines was for overcharging construction firms and local, regional, private and industry train organizations. F.A.Z. reported the fine money will go to the federal government. Almost all the companies are cooperating, according to the cartel authority. The investigation was started by a request to turn state’s evidence from the Austrian Voestalpine company, which also said recently that it is the only one of these companies to have reached a negotiated settlement with the Deutsche Bahn so far. This second set of BKA fines is not yet final; they may still be appealed.

The Bundeskartellamt’s press release said in the cartel the company scheduled to win each order was given a “leadership” role that included telling the others how much to ask for in their so-called “safety bids” [“Schutzangebote“] tendered to camouflage the collusion.

(SHEE nen cartel.)

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