VW's Porsche CEO probed by prosecutors: Stuttgarter Nachrichten
Reuters
Published May 29, 2019 06:41AM ET
VW's Porsche CEO probed by prosecutors: Stuttgarter Nachrichten
FRANKFURT (Reuters) - German prosecutors are investigating the chief executive of Volkswagen's Porsche business, Oliver Blume, over a possible breach of fiduciary trust tied to payments made to a Porsche works council member, a newspaper reported on Wednesday.
By approving the payments, Blume and other Porsche staffers may have contributed towards a misuse of corporate funds, the Stuttgarter Nachrichten said, without citing sources.
The Stuttgart prosecutor's office declined to comment. Porsche declined to comment on whether Blume, who is also a member of the Volkswagen (DE:VOWG_p) board, was being probed, saying it never discusses details of an investigation.
Stuttgart prosecutors said on Tuesday they had searched Porsche's offices as part of a broader probe involving 176 police and tax inspectors as well as 10 state prosecutors.
Porsche managers are being investigated on suspicion of having granted "disproportionate" payments to a member of Porsche's works council, the prosecutor's office said on Tuesday, without elaborating.
Stuttgarter Nachrichten said on Wednesday Blume's offices were searched in connection with this probe.
A severe breach of fiduciary trust for potential misuse of funds is a criminal offence and can carry a penalty of up to 10 years in jail.
Former Deutsche Bank (DE:DBKGn) Chief Executive Josef Ackermann stood trial for breach of fiduciary trust for granting bonus payments to Mannesmann executives. The charges were later dropped in exchange for a 3.2 million euros ($3.6 million) non-penal payment.
($1 = 0.8965 euros)
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Written By: Reuters
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