Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Volkswagen AG said Monday it will file a criminal complaint over the alleged abuse of expense accounts to favor employee representatives, deepening a scandal that has led to the ouster of several of its top executives. “This should create legal clarity on whether members of the workers’ council were favored in connection with the billing of expenses,” VW said in a statement after receiving reports from auditors. The German carmaker did not say who the complaint would be directed against and prosecutors said they had not yet received it. Prosecutors are already investigating bribery allegations against two former executives at the Wolfsburg-based firm, just as it struggles to shore up its earnings amid slack demand in Europe and fallout from a weaker dollar. The scandal includes allegations that lavish holidays for labor representatives at VW’s expense were incorrectly billed. VW has fired two managers over the accusations, which also prompted the head of the workers’ council, Klaus Volkert, to resign. Personnel chief Peter Hartz — whose name has been closely associated with Chancellor Gerhard Schroeder’s efforts to reform the economy — has also offered to step down, though prosecutors have said he is not under investigation. The company said Monday it was filing its complaint under a law which threatens a fine or up to one year in jail against anyone convicted of trying to interfere with employees’ representation through pressure or incentives. VW said the report from auditors KPMG made clear that “several persons and companies” were under examination in the affair, but that a final report would probably come only in October. VW shares gained 2 percent to 43.05 euros ($51.94) on the Frankfurt Exchange. Copyright 2005 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 1 article* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.