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Price-fixing steel bosses 'entertained in brothels'
Photo: DPA

Price-fixing steel bosses 'entertained in brothels'

Published: 11 Sep 2012 09:36 GMT+02:00
Updated: 11 Sep 2012 09:36 GMT+02:00

Steel managers who were fixing prices and dividing up the railway track market took Deutsche Bahn employees to brothels after talking business over dinner, spending more than €71,000 on “entertaining” over five years.

Court documents seen by the Handelsblatt newspaper show that a former manager of a Voestalpine subsidiary spent €71,276 between 2005 and 2009 on his “track friends”. Much of the money was spent in the Berlin brothel “Bel Ami”, the paper said.

While Voestalpine confirmed the existence of the 35 bills paid by the manager, it stressed these had nothing to do with the railway track cartel.

Yet a former manager who was at the price- and market-share-fixing meetings told the Handelsblatt that employees from Voestalpine and ThyssenKrupp had met colleagues from Deutsche Bahn several times. They had discussed prices over dinner, and then gone to the brothel.

ThyssenKrupp was fined €103 million in July, while Vossloh and Voestalpine were fined €13 million and €8.5 million respectively. All admitted to fixing prices and sharing out the market for railway tracks.

The steel managers are only the latest to have been caught spending company money on prostitutes.

Insurance firm Ergo repeatedly sent top-selling agents on trips involving paid-for sex, including one well-documented three-day weekend in Budapest.

The Local/hc

The Local (news@thelocal.de)

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Your comments about this article

10:31 September 11, 2012 by Onlythetruth
So what else is new?
11:22 September 11, 2012 by Berlin fuer alles
Filthy and degenerated at the top. All paid for by the consumer and taxpayer.
12:53 September 11, 2012 by raandy
The price of fuel in Berlin has increased since June and the cost of crude has dropped 10%, how about checking on a fuel price fixing scam.
17:17 September 11, 2012 by Englishted
It is just one cock up after another.
05:28 September 12, 2012 by bob searcy
its the only good think to come from these economic hard times. crooked crap went down but it was exposed.. financially distressed people arent smiling at crooked business leaders right now.
06:55 September 12, 2012 by Berlin fuer alles
Wonder why this is being brought to light at this moment in time? Seems like an agenda by the media. Wasn*t there another similar example of misbehaving recently?
09:11 September 12, 2012 by C Robert
Look at the bright side every one has an opportunity to relax, chill out including those inn keeper hostesses their pocket were bulging with Euros. No harm done! It all for good cause "Price Fixing", so next year harvest will be real Juicy.
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