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Tuesday, 26 June 2012

Germany Corrupt? - Corruption Is A Crime But Just Business When It Involves Billions





This article was originally published on hellenesonline 06 / 01 / 2011

If “miza” and “fakelaki” are the lubrication that runs the Greek economy according to Der Spiegel, and something which is being globally ridiculed then “BESTECHUNG” or “BAKSHEESH” still a tax deductible business practice in the arsenal of German Industry, the engine behind the German economic powerhouse?

“Germany’s fight against global corruption took a big step forward in 1999 when it ratified an agreement by the Organization for Economic Cooperation and Development against bribery. Before then, businesses could often claim bribes to foreign officials as tax deductions.” In other words, Germany has subsidized the whole thing.

It seems though that corruption is a crime when it involves thousands, but just a business when it involves billions, and a good business practice when German companies pay their fines and move on after they get caught in the act. Until the next deal…

Eleven yeas have passed since that day in 1999, when Germany took the big step forward. Does this mean that German companies today bribe more, or less?  Does Germany still hold the “Monopoly in the Global game of bribes and corruption”?  A quick google search limited to a the last few years may shed some light.

Bribes, corruption, tax evasion, foreclosure fraud, price fixing, report altering, fake tests, emissions trading fraud, the German Industry has it all:

Academics selling “Herr Doktor” titles, brothels bribe Oktoberfest taxi drivers, corruption in transportation, construction, chemicals, pharmaceuticals, high tech, defense, banks, Germany seems to drive a hard bargain and a good game both at home and around the Globe.

Alas, but no surprise here, German banks are involved as well. Facilitating the flow of billions of dollars via shell corporations and offshore accounts, tax evasion, carbon emissions trading fraud allegations, a plethora of scandals, allegations, court cases and convictions for shady business practices. What has not been disclosed, or not discovered yet?

The irony is that those are the same banks lending money to debt ridden countries. Whose money do they lend anyway, and where does it come from? is this clean, hard earned money, or money earned from lucrative contracts secured by bribes and corruption?

Some of those business practices will make a great Harvard Business case someday. I just wonder what conclusions MBA students would draw from this…

Despite the history behind it, the German Industry engine roars, driving the German Economy, making Germany stronger, Germany, the backbone and  pillar of  the European Union, a real power machine, giving Merkel the right to say “Nein, Nein”…

German parliamentarians are also prone to bribes and corruption. After the relentless work of the press,  I was under the impression that that was only  a Mediterranean personality trait. The pointing middle finger of Aphrodite of Melo kept reminding me of that, especially when the German Press accused the people of their southern European family.

“The notion of widespread German corruption is certainly being addressed publicly. Bernd Hafenberg, an economist reader of the Frankfurter Allgemeine online, recently commented on the discovery that tens of millions of euros had been paid by contractors to civil servants for work on an autobahn in Eastern Germany. “I consider this to be merely the tip of the iceberg,” he wrote. “Based on 45 years’ work experience, Germany is thoroughly corrupt and whoever talks about this is considered a Judas.”

“A reader of FT Deutschland concurred:
“Corruption is an everyday affair in Germany. I had a business involved in passive road safety systems that went bust because I did not play the game… Manufacturers and construction companies get together, make bids and destroy the competition.”
No wonder politicians are flocking in to get some of the “bestechung” money to help tip the balance of competition to their advantage, faking reports and favouring German projects, products and securing all sorts of contracts that generate long term profits, creating real wealth for Germany, to the benefit and welfare of the average German citizen.

Can anyone blame though German citizens for the shady business practices of the German Industry, or for their government’s inability to contain those practices and to enforce policies on business ethics? Are they all part of it? I don’t know. I don’t.

They did blame everybody else though, with emphasis on all the Greek people!

A lot has been said about the “Greek DNA” in the last few years when it was suddenly discovered , after almost 10 years and millions of work hours by EU employees paid to be watchdogs to accounting inconsistencies and malpractices, that Greece  “faked the numbers with some help from its Atlantic friends” . Germany though, seems to be in a completely different category, a world class all by itself. Indictments, court cases and guilty verdicts are plenty.

You be the judge.

And a logical question then, comes to mind: does Germany apply the same philosophy and practice when it comes to the affairs of the EU?

WikiLeaks may be handy here.

Source - hellenesonline

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