The Hamburg Left Raises Allegations Against Mayor Tschentscher Over Cum-Ex Scandal
The Left party in Hamburg’s Parliament is leveling accusations against Mayor Peter Tschentscher (SPD) regarding the Cum-Ex transactions of the former HSH Nordbank. In the minority report on the final report of the Parliamentary Investigation Committee, the Left claims that the promised thorough investigation of tax fraud at the former state bank by the tax authorities, as announced by Tschentscher when he was finance senator, never took place.
The Left also alleges that the staffing situation at the tax authorities, for which Tschentscher is responsible, hindered the investigation. "Numerous witnesses in this case repeatedly testified about the poor staffing levels in the authorities, which for a long time prevented them from combating these transactions, let alone fully clarifying them to this day," the minority report states.
Between 2008 and 2011, HSH Nordbank, as the state bank of Hamburg and Schleswig-Holstein, had capital gains taxes refunded in 29 cases that had not been paid in the first place. This was revealed by an audit of the bank commissioned by Clifford Chance, a commercial law firm. In 2014, HSH repaid around 126 million euros to the tax authorities as a result.
Left: Failure of Tschentscher
The Left criticizes the fact that the Hamburg Public Prosecutor’s Office has not initiated any investigations for severe tax fraud or imposed fines on those responsible. This "clearly shows the failure" of the then Finance Senator and current Mayor Tschentscher, Left parliamentary group leader David Stoop told the German Press Agency (dpa). "His statements have been refuted: there was neither a careful examination nor a strengthening of the financial administration nor any fines."
The Parliamentary Investigation Committee (PUA) primarily dealt with the Cum-Ex transactions at HSH Nordbank last year. Previously, the focus of the investigation had been on Hamburger Warburg Bank, also involved in the scandal.
The PUA has exposed the weaknesses of the financial administration, said Left MP Norbert Hackbusch. "The financial administration was too weak. The expertise was partly abysmal: even during the questioning, decision-makers supported the legal position of the tax evaders."
Scholz’s Memory Lapses
Due to the memory lapses of Federal Chancellor Olaf Scholz regarding his meetings with Warburg Bank partner Christian Olearius, these meetings could not be fully clarified. "So the assessment remains based on circumstantial evidence," said Hackbusch. "However, this suggests that the then First Mayor Olaf Scholz bears serious political responsibility for the soft stance of the city towards the tax fraud of Warburg Bank."
SPD and Greens: No Political Influence
The SPD and the Greens had already presented their assessment of the PUA’s work in mid-January and concluded that there had been no political influence on the tax treatment of the banks involved in the Cum-Ex scandal.
The approximately 1,300-page final report of the PUA will be debated in Parliament next week.
