Corruption investigation reveals sex scandal

New allegations emerge that Volkswagen executives bribed worker leaders with prostitutes and money

Employee relations took a sordid turn in Germany last month.

A police investigation into corruption at Volkswagen, one of the country’s largest car manufacturers, revealed that executives might have bribed worker leaders with prostitutes to make them more agreeable to company wishes.

Former VW labour-relations chief Klaus-Joachim Gebauer was named as a suspect but the complaint covered anyone in management who might have bribed worker representatives.

Anyone found guilty could face up to one year in jail or have to pay a fine. Those who accepted the bribes could also be prosecuted.

A number of the automaker’s managers were fired or resigned over charges they had improperly paid money into the expense accounts of the workers’ council.

The salacious details of the sexual favours came out as a result of a corruption inquiry against former VW executives over the past few weeks.

Prosecutors have been looking into allegations that VW executive Helmuth Schuster promised Indian officials in Andhra Pradesh that the company would build a factory in the southern region if state officials deposited two million euros into a dummy account he and his Indian associates controlled.

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