Luxury trips by works councils and prostitutes hired on VW's account - the VW affair of 2005 had shaken up the Wolfsburg-based group. On June 30, 2005, Klaus Volkert, head of the works council, resigned due to allegations of corruption. Two and a half years later, the Braunschweig regional court sentenced him to two years and nine months in prison for aiding and abetting breaches of trust and favoring the works council. In early September 2011, he was released early from prison. An internal reporting system is now intended to prevent the self-service mentality of the time. Since 2006, tipsters have been able to contact two external ombudsmen confidentially and anonymously.
505 reports of corruption in one year
In 2014 alone, the ombudsmen and the Volkswagen Group Audit department received 505 reports of corruption and other serious irregularities. 72 employees of the car company have subsequently received their notice. In addition, contracts with 16 business partners worldwide were terminated. According to Volkswagen, compliance with the so-called compliance rules is strictly monitored. For example, travel expenses are checked several times. From the Group's point of view, it is impossible for incidents like 2005 to be repeated. If, despite all precautions, criminal actions such as fraudulent billing should occur, Volkswagen will take vigorous action, the company said at the request of NDR 1 Lower Saxony and NDR Info.
VW works council is silent on the affair
The affair about the works council partying with prostitutes at VW's expense came to light in June 2005. It wasn't just the then head of the VW group works council, Volkert, who was involved. He was kept in good spirits with expensive favors by ex-Head of HR Peter Hartz and VW HR Manager Klaus-Joachim Gebauer. It is unclear what concrete consequences the current works council, led by the powerful chairman Bernd Osterloh, has drawn from the VW corruption affair. In response to multiple NDR requests, the works council did not want to comment on the subject.