Ex-DaimlerChrysler executive arrested for fraud

20th September 2005, Comments 0 comments

20 September 2005, STUTTGART, GERMANY - German prosecutors investigating kickbacks in the construction department at automotive giant DaimlerChrysler said Tuesday they had ordered the arrest of one disgraced executive.

20 September 2005

STUTTGART, GERMANY - German prosecutors investigating kickbacks in the construction department at automotive giant DaimlerChrysler said Tuesday they had ordered the arrest of one disgraced executive.

It was the first arrest in an inquiry that began in January and has spread to about 20 suspects. Prosecutors said they had been concerned that the executive, who has resigned his job at the German- American multinational, might flee the country.

The executive is accused of improperly awarding a contract worth EUR 3.5 million.

Prosecutors in Stuttgart, where DaimlerChrysler has its headquarters and Mercedes factories, declined to name the suspect.

Informed sources in the city said he had been a middle-level manager associated with the construction department and had left at the start of this year. The suspects in the case include former staff, current staff and suppliers.

Police also searched Tuesday the business premises of two former DaimlerChrysler staff and of a supplier and seized documents.

DPA

Subject: German news

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