| In the news: Corporate Germany was in distress last | | | | people. Never did they ever think that the mighty |
| week when news of a former Volkswagen boss was | | | | German industrial machine, famous for hitting |
| convicted of bribery. Peter Hartz reported from | | | | record-breaking targets for exports year after year |
| Frankfurt wearing a tailor-made dark blue suit, light blue | | | | would commit the biggest plunder of all time. |
| shirt and a matching tie, and was driven in a black | | | | Shocking revelations were also exposed during the trial |
| Volkswagen Phaeton limousine which was polished to | | | | like for instance, who would have thought that the late |
| perfection. Everything about the man exemplifies his | | | | and unmourned Nigerian dictator Sani Abacha - an |
| status as the man who set Germany on the road to | | | | unlikely figure to intrude into German domestic politics, |
| recovery. | | | | was also alleged to have received millions of dollars in |
| Peter Hartz, former personnel director at Volkswagen | | | | backhanders from Siemens? More than seven |
| was once again in the limelight but this time not to the | | | | Siemens executives were arrested on the allegations |
| applause of the German government and business | | | | that the company set up a slush fund to pay bribes |
| leaders but rather to the shouts of an angry crowd | | | | just to win billions of euros worth of international |
| present as he made his way across the cobbled yard | | | | contracts. Likewise, a network of front companies and |
| to the courthouse in Brunswick. He was there to | | | | secret bank accounts were discovered by the Munich |
| confess to bribery and corruptions which he is being | | | | prosecutors. |
| accused of on a grand scale. | | | | In the case of Volkswagen and Hartz the investigation |
| It should be noted that the former personnel director of | | | | has uncovered the extraordinarily questionable life of |
| Volkswagen was once a confidant of Chancellor | | | | German bosses. Furthermore, there are also |
| Gerhard Schröder so you can just imagine the | | | | evidences showing Hartz together with his union |
| influence that he has on the German government. The | | | | chums, along with some prominent politicians and |
| question now is: will such connection help Peter Hartz | | | | fellow executives from the Volkswagen Empire has |
| surpass the bribery charges he is facing right now? | | | | amassed millions of euros signed off for the interest of |
| At the courthouse Harts stood in front of the 9,000 | | | | the company and not all of the deals are legitimate. |
| angry shareholders and apologized for another | | | | And the amazing thing about all this is that it has been |
| corruption scandal which is to date, the worst in | | | | going on for decades already. |
| German corporate history. | | | | The said "for the interest of the company" deals |
| The Germans who were watching the live television | | | | include group visits to brothels in Germany, Spain, and |
| coverage of the trial was enthralled by Hartz's court | | | | South America. Add to that the money wasted on |
| appearance together with those from Munich of the | | | | expensive gifts for girlfriends, VIP treatment at Czech |
| humbled Siemens board members, it's like watching an | | | | nightclubs and discos plus, don't forget the luxurious |
| awesome and tragic Wagnerian touch of the | | | | trips around the world. While this fortunate few are |
| Götterdämmerung (Twilight of the Gods). | | | | having the best times of their lives, the hard-pressed |
| The corruption scandal was not only devastating on | | | | Germans were enduring a long period of economic |
| the part of Hartz whose reputation has been trumped | | | | stagnation and cuts in household spending. So it is not |
| to the ground but similarly demoralizing to the German | | | | surprising that the German public is angry at both |
| people at large. | | | | Volkswagen and Siemens executives who with their |
| The corruption scandal became a moment wherein | | | | millions of euros salaries were greasing palms as if it |
| Germans began to question themselves who are the | | | | was part of standard business procedures. |
| other guilty parties? How deeply embedded is | | | | The Company that is Volkswagen |
| institutionalized corruption in their country? Who | | | | Volkswagen is an icon of the 20th century. As a fact |
| protects these corrupt personalities since they could | | | | only few car manufacturers have been able to |
| get away with it for so long? After decades of pride | | | | produce as many legendary cars as Volkswagen. The |
| of their postwar "economic miracle", it was only last | | | | Beetle which is considered a trademark of |
| week that the Germans lost faith in their business | | | | Volkswagen is considered the best-selling car of all |
| leaders and to some extent has become doubtful of | | | | time even its Volkswagen Beetle parts is selling quite |
| the economic miracle that their country has achieved. | | | | well due to its remarkable quality. |
| And all this happen in just a week. | | | | Other Volkswagen vehicles that have earned great |
| According to Perter von Blomberg of Transparency | | | | recognitions are the Volkswagen bus which is a |
| International - a group that fights corruption around the | | | | symbol of a generation and the golf which is viewed |
| world, "In the past, cases of corruption in a company | | | | by many as a modern masterpiece. These are just |
| were more frequently covered up or played down. | | | | some of the automobiles that have made impact on |
| Nowadays there is more public awareness and people | | | | the cultural and personal lives of millions. |
| are more sensitive to the issue." | | | | But from among the vehicles manufactured by |
| Some of the angry protesters at the Hartz's trial | | | | Volkswagen, the Beetle is considered to be the most |
| demanded that he be jailed. They were carrying | | | | prominent. This vehicle is basically Volkswagen's Type |
| placards with angry messages on them and most of | | | | 1and also known in other names such as Fusca, |
| them insisted that Hartz be imprisoned. The cause of | | | | Coccinelle or Cox, Vocho (Spanish), Bug, Volky or |
| the grave public rage on Hartz is brought by the fact | | | | Käfer (German), Escarabajo (beetle in Spanish). |
| that he was the architect of employment-law reforms | | | | The Beetle is an economy car built by the German |
| which produced severe cuts in state benefits. | | | | automaker Volkswagen from 1938 until 2003. The |
| The public hostile response over Hartz corruption affair | | | | names Bug and Beetle were easily adopted by the |
| has led the members of the German government to | | | | public but it was not until August of 1967 that VW has |
| consider removing his name from the statute books. A | | | | officially used the name Beetle in marketing their |
| new title was given to the Hartz Labor Reforms. The | | | | products. |
| Hartz case was like a nightmare to the German | | | | |