German prosecutors are reviewing a trip to India by Klaus Volkert, the former head of Volkswagen’s works council, who travelled with two suspects in a fraud probe, authorities told Reuters.
Go deeper with GlobalData
Brunswick prosecutor Joachim Geyer told the news agency the trip, which cost the firm more than €100,000 ($US122,300), prompted investigators to widen their probe last week to include Volkert, who is under investigation for possible incitement of or being an accessory to breach of trust.
“If Mr Volkert knowingly took part in a so-called pleasure trip that is not covered by a business purpose then that would be being an accessory to breach of trust,” he reportedly said. The person who authorised compensation for the trip may also have committed breach of trust, he added.
Reuters noted that Volkert resigned from the powerful works council last month, acknowledging he was a business partner of two suspects in a bribery scandal but saying he did not enrich himself at the firm’s expense.
The report added that Brunswick state prosecutors are investigating allegations of fraud and betrayal of confidence against the two other suspects – Klaus-Joachim Gebauer and Helmuth Schuster – both former members of the personnel department. They also are checking whether members of the powerful works council got improper inducements in return for supporting management on key issues.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataReuters noted the VW said at the weekend that Volkert, who was also a supervisory board member, had left the firm effective immediately and would retire in November.
The report added that Volkert resigned from the works council in late June, acknowledging he was a business partner of the two suspects but saying he did not enrich himself at the firm’s expense – he was a supervisory board member from 1990 until August 16 and will retire on November 30.
Volkswagen has hired KPMG to perform an independent audit, which is expected at the end of September, the news agency noted.
Geyer reportedly said it was still possible that the investigation could broaden to include other people. “You don’t have to be a prophet to be able to say that this is not final,” he said.
But he added that Peter Hartz, former VW personnel chief who stepped down last month to take responsibility for the affair in his department, was not a target of the probe, Reuters said.
