Error in Geodata Database Leads to Inadvertent Funding for Non-Municipality
Background
For several years, the Sachsenwald forest estate in Germany has been erroneously receiving funds from the municipal financial equalization system. This oversight was recently discovered and attributed to a mistake in the geodata database maintained by the District of Herzogtum Lauenburg.
Discovery of the Error
According to Christoph Mager (CDU), the District’s Landrat (Chief Executive), the database incorrectly classified roads within the non-municipal area of the Sachsenwald as belonging to a municipality. This error meant that the district would not have detected the improper payments even if an audit had been conducted.
Total Sum of Incorrect Payments
The Internal Ministry of the state of Schleswig-Holstein has determined that the Sachsenwald forest estate received approximately €130,000 in unauthorized payments between 2021 and 2023. As of 2024, the ministry had only recovered €31,600 of the €70,000 allocated for that year.
Cause of the Error
The mistake was attributed to street data provided to the district for use in determining the amount of municipal financial equalization funds allocated for road maintenance. This data included 10 kilometers of municipal roads that were mistakenly attributed to the Sachsenwald forest estate.
Accountability
Landrat Mager acknowledged before the Finance Committee that the district had disbursed funds received from the state government, and it was only upon receiving a corrective decree from the state that the district became aware of the unlawful nature of the payments.
Lack of Legal Basis for Recovery
Frederik Hogrefe (CDU), State Secretary in the Internal Ministry, stated that the funds disbursed from 2021 to 2023 cannot be recovered due to the absence of a "specific statutory authorization basis for recovery." Additionally, administrative law does not provide the state government with the authority to reclaim the money.
Significance of the Error
Hogrefe emphasized that the error highlights the need to municipalize the non-municipal areas in Schleswig-Holstein. The aim is to dissolve these areas, voluntarily or otherwise, by 2026.
Special Status of Sachsenwald
The Sachsenwald forest, located east of Hamburg, is owned by the von Bismarck family and is not part of any municipality. It also enjoys special tax privileges. A recent investigation by the ZDF television program "Magazine Royale" in collaboration with the research platform "Frag den Staat" revealed that 21 companies had registered mailboxes in a lodge within the Sachsenwald, taking advantage of the low business taxes.
Owner’s Response
Gregor von Bismarck, the owner of the Sachsenwald estate and the great-great-grandson of the first German Chancellor Otto von Bismarck (1815-1898), has stated that the address in the Sachsenwald is used for legitimate business purposes, with offices equipped with the necessary facilities and regularly utilized by the companies registered there. He added that the Sachsenwald forest estate’s tax rate of 275% is significantly higher than the minimum and is comparable to that of neighboring municipalities.
