German Prosecutors Continue Probing Volkswagen Works Council Pay After Charging Individuals
November 12 2019 - 10:19AM
Dow Jones News
By Max Bernhard
German prosecutors said Tuesday they are continuing to probe the
compensation of Volkswagen AG's (VOW.XE) works council, after
having charged two former executives as well as one former and one
current manager in relation to the matter.
Investigations into the matter are continuing, in particular
against Bernd Osterloh, the car maker's current works council chief
on suspicion of aiding and abetting breach of trust, a spokesman
for the Braunschweig public prosecutors office said Tuesday.
The Volkswagen works council didn't immediately reply to a
request for comment.
Volkswagen said in a statement that no criminal misconduct could
be identified in connection with determining the remuneration of
individual works council members. "In addition, we would like to
point out that the charges brought by the public prosecutor's
office in Braunschweig are not against Volkswagen AG but against
individuals," it said.
The defendants are accused of having granted several members of
the works council excessive salaries and bonuses between May 2011
and May 2016 in their roles overseeing human resources at the
Volkswagen brand, the Braunschweig public prosecutors office said
earlier on Tuesday.
The prosecutors allege that this resulted in 5.1 million euros
($5.6 million) in damages for Volkswagen.
Write to Max Bernhard at max.bernhard@dowjones.com
(END) Dow Jones Newswires
November 12, 2019 10:04 ET (15:04 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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