VW special envoy probes India corruption scandal

1st August 2005, Comments 0 comments

1 August 2005, NEW DELHI - Volkswagen's newly appointed special envoy Frank Elbe has arrived in India to meet with the provincial south Indian government of Andhra Pradesh Monday, hoping to unravel its corruption case.

1 August 2005

NEW DELHI - Volkswagen's newly appointed special envoy Frank Elbe has arrived in India to meet with the provincial south Indian government of Andhra Pradesh Monday, hoping to unravel its corruption case.

Provincial industry secretary Lakshmi Parthasarthy Bhaska told Deutsche Presse-Agentur that Elbe will hold two days of meetings with Andhra Pradesh government from Monday "to get to the bottom of the Schuster corruption case."

The company's former top representative to India, Helmuth Schuster, stands accused of misleading Andhra Pradesh state by promising that Volkswagen would build a factory in the state if a payment of EUR 2 million was made.

Elbe, a former German ambassador to India who has been appointed VW's special envoy to India in the wake of the corruption scandal, arrived in the state capital Hyderabad Saturday night.

"Volkswagen is very concerned with the Schuster affair's fallout on the image of the company. While assuring us of all possible support, they have also requested our support to get to the bottom of the Schuster case", said Ms Bhaskar.

Bhaskar said Elbe will meet Chief Minister YS Rajsekhara Reddy, Industry Minister J Geetha Reddy and senior officials in the state on Monday and Tuesday.

The corruption scandal was revealed on July 9. The German firm has already said it will assume responsibility for the damage caused by the suspected illegal dealings of Schuster, and return the money to the state government.

The Hindu newspaper quoted India's ambassador to Germany TCA Rangachari saying that Elbe will visit the Indian capital New Delhi after holding the talks in Andhra Pradesh.

© DPA with Expatica

Subject: German news

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