Braunschweig, Germany - A former senior manager at
Volkswagen AG was expected later Thursday to receive a suspended
sentence and a fine for his part in a sex-and-bribery scandal that
rocked Europe's biggest carmaker.
The sentencing of Peter Hartz, 65, followed his confession earlier
this month to sanctioning illegal payments in the scandal, reports of
which first emerged about 18 months ago and that were aimed at
winning union support for company decisions.
Hartz is also known as the architect of tough labour market
reforms introduced by former Chancellor Gerhard Schroeder's Social
Democrat-led government.
The former VW manager's name is still attached to the reforms that
were partly aimed at forcing Germany's long-term unemployed to seek
work.
Hartz had expressed regret for his actions in the bribery and sex
scandal and accepted 'criminal responsibility' for them, his lawyer
told the court at the trial in the north German city of Braunschweig.
The scandal, which surfaced in June 2005, originally centred on
allegations of bribes from potential suppliers and the creation of
dummy companies which were used to secure lucrative contracts abroad.
But it quickly widened to include claims about flying around high-
class prostitutes, visits to brothels and sex parties financed with
company funds.
Altogether Hartz faced 44 counts of breach of trust and was the
first person to stand trial in the case, which helped to turn the
spotlight on the often cozy relations between unions and employers in
corporate Germany's consensus-style management system.
Prosecutors had asked for a two-year suspended sentence for the
former VW manager and a fine of a 576,000 euros (747,278 dollars).
Hartz admitted being the initiator of abuse which saw nearly 2.0
million euros in illegal bonuses paid to the then head of the
company's works council, Klaus Volkert.
The payments, made when he was director of Volkswagen's personnel
department, were allegedly used to finance lavish foreign trips by
Volkert and his Brazilian mistress, Adriana Barros.
Hartz, who left the company in July 2005, said he ordered
preferential treatment be given to Volker because of the important
role he played in the company.
Under law, works council leaders need to be consulted on major
decisions taken by leading German companies.
© 2007 dpa - Deutsche Presse-Agentur 
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