Monday, May 28, 2007

VW to face fresh bribery inquiry


German prosecutors and state criminal investigators are looking into the suspicion that a paint supplier in northern Bavaria paid bribes to at least five VW employees to gain contracts, the authorities said.

The announcement is potentially embarrassing for VW because it follows two other bribery investigations involving the carmaker.

The first and most serious led to the resignation and subsequent conviction of a management board member and the pending trial of the head of the works council, who denies wrongdoing. It was alleged that VW gave employees money for prostitutes and luxury holidays in return for compromises at the negotiating table.

The second was a wider and continuing probe involving Faurecia, the French supplier, and other carmakers, which centred on alleged bribes to purchasing managers.

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