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Growing scandal

December 21, 2011

Allegations against the German president over his financial links with wealthy businessmen have mounted further. A lawyer has confirmed the involvement of a businessman in negotiations over a private loan.

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German president Christian Wulff
Wulff has resisted stepping down over the allegationsImage: AP

Fresh allegations have emerged over German President Christian Wulff’s former ties with rich businessmen, fuelling questions over his credibility as the country’s head of state.

According to a report in the Wednesday edition of the national daily paper Die Welt, a lawyer has confirmed that wealthy German businessman Egon Geerkens took part in negotiations regarding a 500,000-euro ($657,000) loan that Christian Wulff received in 2008 to help him buy his family home. In a statement to the paper, Wulff’s lawyer, Gernot Lehr, conceded that Egon Geerkens had been involved in the search for a family home "because of his special expertise and friendly relations," although the private loan actually came from Geerkens’ wife Edith.

Wulff had already been under pressure after he admitted to having failed to disclose the loan received from Edith Geerkens. Egon Geerkens is an old family friend.

The story in Die Welt comes a day after the mass-circulation Bild newspaper published claims that the wealthy tycoon Carsten Maschmeyer financed advertising to promote a book written by the president.

Maschmeyer reportedly paid 43,000 euros in 2008 to publicize the book titled "Better Tell the Truth," which played a critical role in Wulff's re-election as premier of the northern German state of Lower Saxony. Maschmeyer claimed, however, the president was not aware of the financial support for the book, which documents his private and political life.

On Sunday the revelations prompted the Free Democratic Party parliamentarian Erwin Lotter to call for Wulff to step down. "The immediate resignation is a requirement of integrity and responsibility," Lotter told German news agency dpa.

German Chancellor Angela Merkel has, however, reiterated her support for the German president. Wulff still enjoys the "complete confidence" of the chancellor, government spokesman Steffen Seibert said on Tuesday. The chancellor and Wulff are in "regular and intensive contact, addressing a number of questions," Seibert added.

In an interview with German public television on Tuesday, Justice Minister Sabine Leutheusser-Schnarrenberger also said she was confident the president would explain the latest allegations. "The president will explain the issues that have to be explained," she said.

Legal concerns

Christian Wulff with businessman Carsten Maschmeyer
Wulff was a guest at Maschmeyer's Majorca holiday home in 2010Image: dapd

Lower Saxony's state parliament convened on Tuesday in a special session of the Council of Elders to examine whether Wulff had violated ministerial laws which prohibit politicians from accepting gifts in relation to their office, although nothing concrete was decided.

In a statement released last Thursday, Wulff admitted he may have given the "wrong impression" about his financial ties with Egon Geerkens and his wife when he responded to questions from the opposition Green Party in 2010 by denying having any business relationship with Geerkens.

The documents relating to the loan have now been made available to the media at the office of a Berlin lawyer.

The Council of Elders also planned to scrutinize holidays which the president spent at the homes of wealthy businessmen while serving as state premier. According to a list published by the president on Sunday, he spent a total of six holidays with wealthy friends in Spain, Italy, Florida and the German island Norderney between 2003 and 2010.

Despite the accusations facing the German president, a survey conducted by public television on Monday has found that 70 percent of the German public do not believe that Wulff should step down, although only 51 percent regard him as "trustworthy."

Author: Charlotte Chelsom-Pill, Chuck Penfold (dpa, dapd, Reuters, AFP)
Editor: Andreas Illmer