German politics acquires sleazy tinge

[Ulhas Joglekar]

23 January 2000
German politics acquires sleazy tinge
By Ritu Gurha
BERLIN: Bonn, it seems, is undergoing a painful dismantling. Even the most
nationalistic of Germans is turning distinctly apologetic. The suicide of a
senior accountant of the Christian Democratic Union gives a macabre twist to
German politics.
As the German parliament opened a full-scale investigation Thursday into the
murky financial dealings of former Chancellor Helmut Kohl and his band of
loyalists, fresh reports of money laundering, illegal slush funds and
possible bribery are increasing the deep sense of disillusionment among
Germans. A nation-wide poll released Friday showed the CDU had sagged to 36
percent, four behind Chancellor Gerhard Schroeder's Social Democrats. Only
two months ago, the CDU had a 45-32 percent poll lead over the SPD.
Kohl turned defiant, repeating that he could not break his word of honour,
even as the present party chief, Schaeuble, a former Kohl protege, regretted
having deceived the legislature about his own role in accepting an illegal
$52,000 contribution from a shadowy arms dealer. Younger Turks of CDU are
outraged by Kohl's stance and cannot afford to let the anachronistic values
of honour undermine the values of transparency, accountability and openness.
Kohl who has lost his stature as a revered statesman, refuses to reveal the
identity of the secret donors, leaving Christian Democrat reputations open
to speculation. To make matters worse, confused explanations this week
attributing some of the money found overseas to contributions by Jews have
further worsened the party's plight, with accusations of anti-Semitism. The
party even apologised ``to our Jewish compatriots.''
While Kohl insists that the money was used by CDU to prevent resurgence of
communists in unified Germany, Social Democrats are not mincing words. They
point to the tight links between Christian Democrats and business.
Some analysts are even going as far as to say that the disarray might
unravel Germany's normally tight-knit political system -marked by cozy
arrangements between banks, industry and political parties. Ernst and Young,
the independent auditors hired by CDU, are busy unravelling shadowy
ongoings, even though the CDU could face huge fines under Germany's
political funding laws.
The former chancellor apparently also faces a separate criminal
investigation for breach of trust that, if it leads to conviction, would
carry a maximum five-year jail sentence.
Meanwhile, an 11-member committee, led by the governing alliance of Social
Democrats and Greens, will examine whether the secret funds diverted to the
CDU coffers were actually bribes or kickbacks linked to favourable actions
taken by governments under Kohl. Volker Neumann, a Social Democratic member
of Parliament who will serve as chairman of the inquiry, has said the probe
will inquire into the 1992 sale of the Leuna oil refinery and a chain of
gasoline stations in eastern Germany to the French company, Elf-Aquitaine,
which was then state-owned. At least $40 million from the sale remains
unaccounted for.
A second area of inquiry concerns the sale of tanks to Saudi Arabia and
aircraft to Canada that involved a German-Canadian arms dealer, Karlheinz
Schreiber who is now fighting extradition from Canada. The probe will also
include the suspected laundering of funds for the Christian Democrats
through banks in Switzerland and Liechtenstein. The probe has already
claimed two casualties: Manfred Kanther, who served as interior minister
under Kohl and Huerland-Buening, a former senior defence ministry official.
For reprint rights: Times Syndication Service
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