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Connections and corruption

December 22, 2011

Business leaders and political leaders are often better friends than we'd like to think. Now such friendships dating back to President Christian Wulff's time as Lower Saxony's state premier have come back to haunt him.

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President Christian Wulff (right) and friend Carsten Maschmeyer (left)
In Hanover Wulff surrounded himself with wealthy friends

Networking. Some people think it's sleazy and the source of corruption in politics. Others see it as simply a way to get ahead. The idea goes something like, "you scratch my back, I'll scratch yours," and it's this kind of friendly atmosphere that German President Christian Wulff and his friends enjoyed in Lower Saxony during his time as state premier there.

Wulff considered the wealthy businessman Egon Geerkens to be a close family friend, for example, who played an almost father-like role in his life. The loan Wulff received from Geerkens' wife to buy a house could be seen as just another favor between friends. The Geerkenses may or may not have gained political or business advantages through their relationship with Wulff and their loan.

Egon and Edith Geerkens
The Geerkenses were such good friends with Wulff that Edith loaned him 500,000 eurosImage: picture-alliance/dpa

Gerd Langguth, a political scientist at the University of Bonn and expert on German political parties, sees another motive for the loan.

"There are always people who want to be near power," Langguth told Deutsche Welle. "Especially in a state capital like Hanover, where the state premier is a very big deal. To have him know you, to be invited to his summer party, these are the kind of things that are extremely important for certain people."

Just a 'good friend'?

This proximity to power does seem to drive the entrepreneur Carsten Maschmeyer. These days you hear his name as often as the Geerkens. Maschmeyer is considered especially well connected in Hanover. He's the founder of the financial services firm AWD and his fortune is estimated at about 650 million euros ($848 million).

That gives him plenty of money for a friendly favor or two. He's alleged to have donated 330,000 euros to the election campaigns of former Chancellor Gerhard Schröder from the Social Democrats. His generosity wasn't tied, however, to one party or the other. He was apparently also willing to help out Wulff, who is a member of current Chancellor Angela Merkel's Christian Democrats.

Wulff and Maschmeyer
Maschmeyer says Wullf didn't know that he paid for the ad campaignImage: dapd

Maschmeyer reportedly paid 43,000 euros in 2008 to publicize the then-state premier's book titled "Better Tell the Truth." Maschmeyer claims, however, that Wulff was not aware of his financial support for the book.

Challenging networks

That Wulff's old friendships from Hanover are now causing trouble for him in Berlin may come as a surprise to him because he sees these relationships as totally benign. Political parties expert Langguth believes lawyers are unlikely to find any criminal behavior.

"The political process is usually so complex and complicated that individual interests on their own can't just be implemented that easily," he said. "I am absolutely sure, for example, that Mr. Geerkens did not benefit economically from his connection to Christian Wulff."

There will always be networks like the ones Geerkens, Wulff and Maschmeyer were part of in Hanover. In fact, people with career ambitions are often advised to form networks. But Christian Humborg, the managing director of the German branch of Transparency International, thinks networks should be challenged more than they are.

"What's always important to ask is 'what purpose do these networks serve?' and 'how open are these networks?'" he said. "What's crucial is who is in the network and whether these people are in a role or capacity that creates a special responsibility."

President as role model

Humborg is critical of Wulff's handling of his Hanover connections.

"We recommend all decision makers follow this basic rule: Be transparent about what you are doing. Because that can be a good indicator then if you need to answer for what you're doing," he said.

For Humborg, Wulff has an especially big responsibility, because he must not damage the office of the president. In Germany the president's role is largely ceremonial, but he is considered the country's moral authority.

Author: Jörg Brunsmann / hf
Editor: Nicole Goebel