• Germany edition
 
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)

Don't miss...X
Left Right

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.
Today's headlines
Ex-minister jailed over F1 race track scandal
Ingolf Deubel in court on Wednesday. Photo: DPA

Ex-minister jailed over F1 race track scandal

A former state finance minister was sentenced to three-and-a-half years in prison on Wednesday, having been found guilty of embezzling money in the scandal around the failed sale of the Nürburgring Formula One race track. READ () »

Upper Bavaria boasts lowest EU unemployment
A Bavarian worker works hard Photo: DPA

Upper Bavaria boasts lowest EU unemployment

Southern and central Bavaria have the lowest unemployment in the EU, according to figures released on Tuesday, with one business leader boasting the area has “de facto full employment”. READ () »

Thousands of tax evaders come forward to declare
Uli Hoeneß was jailed last month for tax evasion. Photo: DPA

Thousands of tax evaders come forward to declare

The number of German tax evaders who have self-declared to avoid prosecution trebled in the first quarter of 2014, figures published on Wednesday showed, with the rise put down to the "Uli Hoeneß effect". READ () »

Petition fails to remove WWII Russian tanks
One of the WWII Russian tanks near the Brandenburg Gate. Photo: DPA

Petition fails to remove WWII Russian tanks

The German government rejected on Wednesday a call by two newspapers to remove Russian tanks from a World War II memorial in central Berlin in protest against spiralling tensions in Ukraine. READ () »

Germany warns Ukraine talks must not fail
A Ukrainian policeman at a checkpoint in the eastern city of Kharkiv on Tuesday. Photo: DPA

Germany warns Ukraine talks must not fail

Foreign Minister Frank-Walter Steinmeier said on Wednesday that scheduled four-way talks on the Ukraine crisis must not fail, warning of "the threat of more dead and injured". READ () »

Olympic stadium could be giant polling station
Berlin's Olympic Stadium. Photo: DPA

Olympic stadium could be giant polling station

Berlin's Olympic stadium could become the world's biggest polling station if the Turkish community gets the go-ahead to vote there in Turkey’s general elections. READ () »

The Local List
Nine ways to celebrate Easter like a German
Photo: DPA

Nine ways to celebrate Easter like a German

From rolling wheels filled with burning hay down a hill, to waiting for a fox to bring eggs, The Local List this week looks at the nine best German Easter traditions. READ () »

Biology pupils find horse in kebab meat test
Horse? Photo: DPA

Biology pupils find horse in kebab meat test

Schoolchildren in western Germany came across horse meat while testing doner kebabs in a biology experiment. It comes a year after the horse meat scandal which showed much meat on sale in Europe had been mislabelled. READ () »

Private health insurance not worth it for workers
Photo: DPA

Private health insurance not worth it for workers

Thousands of employees paying into private health insurance in Germany get poor value for money, according to consumer experts - who recommend going private for just one group of workers. READ () »

'Free range' chicken farmer tricks customers
Free range? Photo: DPA

'Free range' chicken farmer tricks customers

UPDATE: A major producer of ethically certifified meat has admitted to defrauding thousands of customers for years by passing off conventional chicken as free range. But the brand said it took swift action to deal with the case. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: Galerie Bilderwelt
Gallery
World War I in colour photos
Photo: DPA
Society
'The mafia has infiltrated every sector in Germany'
Photo: DPA
Society
JobTalk: Why you should teach English in Germany
Photo: DPA
National
330,000 sign up against TV licence fee
Photo: DPA
Hamburg
School kids hospitalized after 'porno' party
Photo: Submitted
Frankfurt
'I'll get even with my old pal Schwarzenegger'
Photo: DPA
Gallery
The week in pictures: April 5th - April 11th
Photo: DPA
Gallery
Ten great inventions you (probably) didn't know were German
Photo: J. Arthur White
Berlin
Clashes in Berlin as refugees tear down their own camp
Photo: DPA
Gallery
Munich's baby polar bears are finally named
Photo: DPA
Gallery
The 10 best German employers to work for
CurrencyFair
Sponsored Article
Why it pays to avoid banks when making overseas transfers
Advertisement:
Mr. Lodge
Sponsored Article
How to find a furnished rental in Munich
Sponsored Article
How to make a lasting impression in business
Hult International Business School
Sponsored Article
What they don't teach you at Business School
Photo: DPA
Society
Nine jobs you can only do in Germany
Photo:ESL
Sponsored Article
How to integrate successfully in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,115
jobs available
Toytown Germany
Germany's English-speaking crowd