Publication: Sapa Issued: Dusseldorf Date: 2008-04-23 Reporter: Sapa

Germany Widens Warship Kickbacks Inquiry at Thyssenkrupp

 

Publication 

Sapa
GERMANY-SA-ARMS
Issued Dusseldorf
Reporter Sapa
Date

2008-04-23
 


A German inquiry into alleged kickbacks for South African officials who placed an order for four new warships has widened, with 12 suspects identified, two of them serving executives at the ThyssenKrupp company, a prosecutor said Wednesday.

The company, which builds warships and submarines for world navies, has confirmed paying an African intermediary 22 million dollars for "the usual commissions" *1 but says there is no evidence of corruption.

Arno Neukirchen, business-crimes prosecutor in Dusseldorf, told Deutsche Presse-Agentur dpa that the 12 suspected of paying bribes included nine current or former executives at ThyssenKrupp.

A spokesman for ThyssenKrupp Services, Gerhard Sperling, confirmed a report on the Stern website that two were current executives.

Stern quoted Neukirchen saying requests for help from prosecutors in South Africa and Switzerland had been fruitless *2, adding, "We don't know when or how the authorities in South Africa will answer." Eight years ago South Africa ordered four ocean-going corvettes from the dockyards unit, now ThyssenKrupp Marine Systems (TKMS), to re-arm its navy. They have been delivered and are in service.

ThyssenKrupp says the "provisions" were openly reported in its taxable accounts. "We made no secret of it," said Sperling, adding there was "no evidence for the insinuations by the prosecutors." The prosecutors say they are pursuing an out-of-court settlement with ThyssenKrupp and lawyers on an agreed fine. *3

The company has insisted it wishes to completely resolve the allegations and is cooperating with the prosecutors.

Since 1998, Germany has banned attempts to corrupt foreign officials. *4

With acknowledgements to Sapa.


*1       "Useful expenditure" has transmogrified into  "the usual commissions".

Thyssen is getting scared.


*2      So much for Mutual Legal Assistance (MLA) in terms of accepted international law.

Thabo is running scared.


*3      The easy way out.


*4      This is the problem for Thyssen. It claims that its conduct was not unlawful because paying undue commissions was not illegal until the OECD regulations became law in Germ any. The date for this was 15 February 1999. But the commissions were paid in 2000.

Thyssen is relying on the chronology of events which is in any case a fine line.

This is Thyssen's case, but for the recipients of the bribes in South Africa, it is clear cut - receiving bribes or unlawful considerations of any kind and at any time is a criminal act, recently under the various Prevention of Corruption Acts and previously under common law. This is punishable with a minimum of 15 years incarceration in cases where the amounts involved exceed R500 000.

Jacob is running scared.

Chippy is running scared.

Mo is running scared.

Little Johnny is running scared.