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FINANCE

Police search KfW over transfer scandal

Police searched the offices of the KfW state development bank in Frankfurt on Wednesday while investigating alleged crimes connected with money transferred to Lehman Brothers after it had gone bust.

Police search KfW over transfer scandal
Photo:DPA

Officers from the Federal Criminal Police (BKA) and the public prosecutor were sent to the offices looking for documents relating to the transfer, which made KfW a laughing stock when it sent the money on September 15 as part of a liquidity exchange operation agreed to before the US investment bank went under.

The state prosecutor says it wants to establish whether those in charge of the corporation had “abandoned their asset management responsibilities to a criminal degree,” daily Handelsblatt reported on Wednesday.

“The fraud allegation we are investigating has nothing to do with anyone enriching themselves personally, it relates to the main suspicion of them knowing about the liquidity problems of the bank but nonetheless transferring the money,” a prosecutor spokeswoman told The Local on Wednesday. “If you know that something is not right, but you do it anyway, that can be included in fraud.”

She said the investigators, two from the prosecutor’s office and two BKA officers, went into the offices at around 9:30 am, and were still there at 1:30 pm.

Arrests were not immediately expected, she confirmed, but added, “The suspects have already been informed, and will be questioned once we have analyzed the material seized. It concerns the six then members of the board, and the head of the risk management and risk controlling department. All are men.”

A spokesman for the KfW told the Handelsblatt newspaper, “The KfW will provide all requested information and documents to the state prosecutor for the investigation.”

KfW is now only likely to get just half of the money back via insolvency proceedings at Lehman.

Three bank officials called “Germany’s dumbest bankers” have since been suspended for the expensive cock-up.

CRIME

German jailed for life in double police murder

A German man was given a life sentence on Wednesday for shooting dead two police officers to escape being caught for illegal game hunting during a routine traffic check.

German jailed for life in double police murder

The regional court in Kaiserslautern found 39-year-old Andreas Schmitt guilty of the killings in January this year, which sent shockwaves across Germany.

His co-defendant, referred to by the court as Florian V., was found guilty of abetting illegal poaching.

The 33-year-old was in the car with Schmitt when the officers discovered dead game in the boot, investigators said.

“We are all to this day horrified that a supposed routine control could turn into a fatal incident,” Interior Minister Nancy Faeser said in a statement after the verdict.

READ ALSO: German prosecutors say poaching led to double police murder

The victims were a 24-year-old woman police officer still in training and her colleague, a 29-year-old man.

The young woman was killed by a single shot to the head, while the man was shot four times, investigators said.

The officers were able to report that they were checking a suspicious vehicle and that shots were being fired before radio contact broke off.

When backup arrived, the woman was already dead and the man fatally injured. The perpetrators had fled the scene.

The crime in the Kusel district of Rhineland-Palatinate state triggered a major manhunt, with police deploying helicopters and sniffer dogs, sealing off roads and warning local residents not to pick up hitchhikers.

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