Porsche CEO Blume investigated by German prosecutors
German prosecutors are investigating Porsche CEO Oliver Blume over a possible breach of fiduciary trust tied to payments made to a Porsche works council member, the Stuttgarter Nachrichten reported.
By approving the payments, Blume and other Porsche staffers may have contributed towards a misuse of corporate funds, the paper said on Wednesday, without citing sources.
The Stuttgart prosecutor’s office declined to comment.
Porsche declined to comment on whether Blume, who is also a member of the Porsche parent Volkswagen Group’s board, was being probed, saying it never discusses details of an investigation.
Stuttgart prosecutors said on Tuesday they had searched Porsche’s offices as part of a broader probe involving 176 police and tax inspectors as well as 10 state prosecutors.
Porsche managers are being investigated on suspicion of having granted “disproportionate” payments to a member of Porsche’s works council, the prosecutor’s office said on Tuesday, without elaborating.
Stuttgarter Nachrichten said on Wednesday that Blume’s offices were searched in connection with this probe.
A severe breach of fiduciary trust for potential misuse of funds is a criminal offence and can carry a penalty of up to 10 years in jail.
Former Deutsche Bank CEO Josef Ackermann stood trial for breach of fiduciary trust for granting bonus payments to Mannesmann executives. The charges were later dropped in exchange for a 3.2 million euros ($3.6 million) non-penal payment.