Beautiful Virgin Islands

Thursday, Jan 02, 2025

German chancellor forced again to deny link to banking tax scandal

German chancellor forced again to deny link to banking tax scandal

Previously unseen emails put former Hamburg mayor Olaf Scholz back in spotlight over €300m fraud scheme
The German chancellor, Olaf Scholz, on Friday again denied allegations that he held a protecting hand over a local bank found guilty of a multimillion euro tax fraud scheme while he was mayor of Hamburg, as the centre-left politician was questioned by a state parliamentary committee in the northern city for a second time.

“I did not influence the Warburg tax procedure,” Scholz said at the start of the session. “There was no political influence on the tax procedure.”

Hamburg-based MM Warburg & Co, Germany’s oldest and largest private bank, is alleged to have swindled the German state out of an estimated €300m through the so-called “cum-ex” scheme between at least 2007 and 2011.

Cum-ex deals involve trading shares at high speed on or just before the dividend record date – the day the company checks its records to identify shareholders – and then claiming two or more refunds for capital gains tax that had in fact been paid to the state only once.

The name refers to rapidly traded shares with (“cum”) and without (“ex”) dividend rights. Last year the German federal court of justice ruled that such schemes were and always had been criminal acts of tax evasion.

Scholz, now the head of Germany’s three-party coalition government, agreed in September 2016 to meet Warburg’s boss at the time, Christian Olearius, while the bank was already under investigation by financial authorities and faced having to pay back €47m in taxes.

Shortly after the meeting, Warburg was told by Hamburg authorities that it did not have to pay the bill after all – a decision partly revoked a year later by the federal finance ministry in Berlin.

On Friday Scholz dismissed as “suppositions and insinuations” claims made by opposition politicians that he had influenced the tax authorities’ waiver by asking Olearius to forward a document outlining his defence to the city’s state minister for finance.

Even though the allegations centre on events that took place six years ago, the affair has captivated German national media again in recent weeks due to the emergence of previously unknown details.

This week it emerged that investigators working for the public prosecutor in Cologne had seized emails from Scholz’s former office manager that suggest the then mayor may have deleted data pertaining to the matter. The Frankfurter Allgemeine Zeitung said the emails clearly “incriminate” Scholz.

The meeting between Scholz and Olearius was described in the former Warburg boss’s seized diary. This was cited in court and leaked to the Süddeutsche Zeitung, though the politician said he could not remember what they talked about when first questioned by a parliamentary committee.

He said he had given no “special treatment” to the banker, whose lending house plays a powerful role in Germany’s second largest city and played a part in rescuing the local shipping company Hapag-Lloyd from a sale in 2008.

At the chancellor’s annual summer press conference in early August, Scholz sounded increasingly frustrated when pressed by journalists on the affair.

“An incredible number of people have been interviewed, an incredible number of files have been scrutinised,” the Social Democratic party (SDP) politician said. “And if you follow the press coverage about the relevant hearings, there’s always the same result: no political influence was exercised when it came to the decisions. I am convinced that this understanding won’t change, that’s very clear after two and a half years.”

Prosecutors in Hamburg backed the chancellor’s stance on Tuesday this week, rejecting a legal complaint seeking to open criminal proceedings against Scholz and ruling they had so far seen no reason to investigate him.

Delegates of the conservative Christian Democratic Union (CDU) and leftwing Die Linke in Hamburg want to expand the investigative committee’s reach to also look into the cum-ex activities of Hamburg Commercial Bank (formerly HSH Nordbank), which would probably lead to more appearances by the chancellor.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Ukraine Halts Russian Gas Transit, Sparking Energy and Diplomatic Turmoil in Europe
Terror Strikes New Orleans: Tragic New Year's Eve Attack Leaves 15 Dead
Tragedy at Sea: 20 Missing in Mediterranean Migrant Crisis
Romania and Bulgaria Join EU's Schengen Zone, Removing Land Border Controls
Australian Home Prices Begin to Cool After Nearly Two Years of Gains
Energy Bills Surge Again Amid Economic Strain on Families
Ivory Coast Announces Departure of French Troops
Ivory Coast to Evict French Troops Amid Surging Calls for African Sovereignty
Ukraine Ends Russian Gas Transit: A Shift with Geopolitical Ripples
Military Appeals Court Upholds 9/11 Plea Deals, Limiting Defense Secretary's Authority
Guatemalan Authorities on High Alert as 'Lev Tahor' Cult Leaders Threaten to Flee with Children to Mexico
South Korea Issues Arrest Warrant for Ousted President Over Martial Law Declaration
Russia and Ukraine Conduct Major Prisoner Exchange Amid Ongoing Conflict
Jimmy Carter: A Legacy of Peace and Humanity Remembered at 100
Kim Jong-un Pledges Toughest Anti-US Policies Amid Rising Tensions
In Unprecedented Exchange, Russia and Ukraine Swap Hundreds of Prisoners
Trinidad and Tobago Declares State of Emergency as Murder Rates Surge
Debate Over Transgender Inmate Policies Intensifies Amid Allegations of Assault in US Women’s Prison
Trump's Stance on H-1B Visas: Balancing Economic Value and National Interest
Channel Tragedy: Three Dead in Record Year for Perilous Crossings
Jimmy Carter: The Legacy of America's Centennial Statesman
Record Tragedy in the Channel: Three Dead and 2024 Becomes Deadliest Year for Sea Crossings
Operation Beepers: A Remarkable Triumph of Israeli Intelligence Against Hezbollah
Rail Unions Keep the UK in a Chokehold: The Battle Over Power and Pay
Today, Biden allocated an additional $1.25 billion to Ukraine.
Biden Reportedly Regrets Decision to Step Aside, Claims He Could Defeat Trump
Russian Tanker Seized in Baltic Investigated for Espionage
Elon Musk's Controversial Endorsement Adds Tension to German Politics
Putin Extends Olive Branch Amidst Tensions Over Azerbaijan Airlines Crash
Elon Musk’s Controversial Endorsement of Germany's AfD Sparks Editorial Resignation
The Missteps of 2024: Teams, Coaches, and Players Who Fell Short
Frustrated Canadian tells Trudeau to "Get out of BC" during his Christmas vacation ski trip
In Syria today, responding incorrectly to the question 'Are you Alawi or Sunni?' can be detrimental to your well-being.
Restricted Area in Australia
NATO to Amplify Baltic Defenses Amidst Shadowy Undersea Sabotage Claims
Dense Fog Disrupts Over 1,000 Flights at Heathrow and Gatwick
Biden Administration Commits Additional Military Aid to Ukraine
Biden Boosts Ukrainian Defense as North Korea Sinks Deeper into Russia's War
Azerbaijan Airlines Crash Triggers Speculation of Russian Misfire
Western Support for Ukraine Wanes Amidst Trump’s Return and Russian Resurgence
Ukraine Strikes Russian Missile Factory, Deepening Tensions
Ireland's Medieval Ecclesiastical Register Undergoes Conservation
The Closure of the Global Engagement Center: Controversy, Claims, and Conclusions
The Rise of Princess Charlotte: A New Star in the Royal Firmament
Diplomatic Waters: Finland's Seizure of a Russian-linked Vessel in the Baltic Sea
Reform UK Declares Itself the 'Real Opposition' Amid Membership Surge
Pope Francis Opens Holy Door at Major Italian Prison
Britain’s ‘Wild West’ of Weight-Loss Jab Promotions Faces Growing Scrutiny
Pope Francis Urges Unprecedented Dialogue Amid Escalating Ukraine-Russia Tensions
Dozens Survive Kazakhstan Passenger Jet Crash Amid Tragedy
×