Ex-state premier investigated
July 11, 2012
The former state premier of the south-western German state of Baden-Württemberg, Stefan Mappus, and current Morgan Stanley German branch head Dirk Notheis, who is also friends with Mappus, are being investigated for breach of trust and accessory to breach of trust in a controversial case dating back to 2010.
Police raided offices and homes in eight towns, securing documents and computer files.
In December of that year, the state of Baden-Württemberg bought a 45-percent stake in EnBW, one of Germany's four major utilities, for 4.7 billion euros ($5.8 billion) from France's EDF. Prosecutors say that, according to a report by the state's accounting office, the then-government - led by Mappus - paid EDF an extra 840 million euros for the shares.
They argue that the deal had neither been prepared thoroughly nor did anyone assess it for its cost-effectiveness. Prosecutors also say that EnBW's share price had been rounded up, pushing up the sale price.
Defiant Mappus
Mappus sealed the deal without parliamentary approval or involvement from the finance ministry, which is why the deal had long been criticized by the opposition.
But the former state premier remains defiant, insisting the deal was sound - despite the fact that a regional court had already ruled that he acted against the constitution in bypassing MPs.
Since the beginning of this year, a parliamentary committee has been looking into the matter, unearthing several emails showing that Notheis advised him to keep parliament out of the deal.
"You really can't explain this to anyone anymore," fellow regional Christian Democrat Thomas Strobl said.
Notheis has been on indefinite leave from Morgan Stanely since last month. Mappus resigned as head of the regional Christian Democrats in March 2011 after a disastrous result in state elections that month.
ng/slk (dpa, AP, AFP)