Prosecutors investigate German carmakers

24th July 2006, Comments 0 comments

24 July 2006, FRANKFURT - German prosecutors said Monday they were investigating allegations of corruption at German carmakers Volkswagen and Audi. The charges relate to kickbacks allegedly paid by French car parts supplier Faurecia for favourable treatment in the awarding of contracts, prosecutors said. The French company is suspected of having paid 600,000 to 800,000 euros ($750,000-1 million) a year to senior employees in the purchasing department of the German carmakers, the prosecutors said. A total o

24 July 2006

FRANKFURT - German prosecutors said Monday they were investigating allegations of corruption at German carmakers Volkswagen and Audi.

The charges relate to kickbacks allegedly paid by French car parts supplier Faurecia for favourable treatment in the awarding of contracts, prosecutors said.

The French company is suspected of having paid 600,000 to 800,000 euros ($750,000-1 million) a year to senior employees in the purchasing department of the German carmakers, the prosecutors said.

A total of 20 persons are under investigation, among them, two VW purchasing executives and an Audi employee.

Der Spiegel news magazine said the unnamed executives each received up to 160,000 euros in kickbacks from the French supplier.

Sources close to prosecutors said the men, aged, 46 and 64, also received furniture and expensive holidays paid for by Faurecia.

Two employees of the parts supplier and a VW employee were taken into investigative custody.

All three companies involved promised their full cooperation in the investigation.

DPA

Subject: German news

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