Legalized corruption...

Balanced nonsense?

Was there a calculated five year plan of balance fraud at one of Germanys biggest corporations? Who was involved in the deals? What role did the financial authorities of the city play?
Purposive money and belongings worth several hundert mn Euros are "redirected" by financial authorities and public companies with a private sticker! CEOs, supervisory boards, accountants and private investors work together to embezzle taxpayer belongings and let the public transport users and taxpayers of Hamburg pay twice for trains, boats etc.!

Susat & Partner Wolfgang Peiner Years after quitting as financial senator of the City of Hamburg Peiner and his company made sure that the balances of Hamburg looked clean.

HGV

A mere 100 meters distance from Hamburgs Town Hall you can find the entrance to the "HGV corporation". The "Corporation" has 15.298 employees. The logic says it all, Janitor Kalanovic seems due to his importance in need of a bigger nameplate than the corporation

No corporate governance for us!

The exceptional position of the HGV would either call for several exceptional contracts in Hamburgs Corporate Governance Kodex or lead to unwanted outcome (for example in regard of the conformity statement to the HCGK, that in corporations the mother company states this for all companys), the HGV itself will be excluded from the Hamburg Corporate Governance Kodex .

New taxpayer loans from von Beust & Co.

Tax money bermuda triangle

Mayor and financial senator sign new billion euro bonds for the citizens of Hamburg!
Generally for loan conversions, with a smaller bulk for the financing of it´s interests in Hapag Lloyd, the HGV will issue vouchers of credit up to 1,3 billion Euros in 2009! Up to the middle of June 2009 the HGV has aquired a first tranche of 508 million Euros.

The "Corporation"

HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsmanagement mbH
(City of Hamburg owned corporation for wealth and partnership management)

A manipulative construction of Hamburgs finance senator built to evade any supervision. A playground for the senate, defying stock and fair trade laws, opening new definitions of the term competiton on a free market.

Whose supervisory board chairman is the acting and controlling figure at the same time.

Public undertakings are, opposed to private companies excluded from paying value taxes by German law. Bidding for public tender makes instant "winners" out of these firms. Although even the Federal Fiscal Court sees a violation of equality of treatment (Az. I R 30/06 vom 18.09.2007) in these practices the communal "owners" revel in them.

One of the most vivid violations of fair trade standards can be seen in the Benex / Hochbahn (subsidiary companys of the HGV / City of Hamburg) bid for the public contract of Regensburg Regio deal. In a europe wide bid the Hochbahn calculation came up as a winner due to tax advantages. Extending these to international financing businesses otherwise unwanted in the City of Hamburg shows the extent of the "Corporation HGV".

The other side is the deliberate breach of laws defining that the common increase of capital for public transport services is forbidden. The City of Hamburg transfers 160 million Euro tax money to the HGV / Hochbahn every year. Though the investments are purposive to the limited public transport service of Hamburg for suffered losses (the Hochbahn claims a cost efficency of 80%) in the limited district of Hamburg, the "companys" leading man Günther Elste profiles himself and the company as a national player with investments all over Germany! Hamburgs citizens could be transported to prices under 2 € without these "expansions". The German tax payers loss is a great deal for the senators HGV. According to the HGVs rendering of accounts 2007: "The Corporations balanced earnings of...result primarily out of...as well as the losses of the Hochbahn." Balances coincedentally made by Susat & Partners, one of the "Partners" former financial Senator Peiner, also Chairman of the HSH supervisory board!

A freedom of information enquiry about verification of the use of purposively restricted tax funding to the Hochbahn was denied by the financial authoritys with the substantiation senator Freytags authoritys are unable to disclose information about "private" businesses.

The financial senator Dr, Michael Freytag is supervisory board chairman of the HGV, supervisory board chairman of the Hochbahn, board member of the HSH Nordbank.

The economics senator Axel Gedaschko is board member of the HGV, supervisory board chairman of the HVV

§ 105 AktG (German stock laws)

Incompatibility of the association to the board of directors and the supervisory board.
(1) A supervisory board member can not be acting director, substitute director, authorized signatory or authorized agent in charge of business at the same time.

Michael Freytag prior to the Hamburg elections:
"The City of Hamburgs Hochbahn is a jewel amongst the public undertakings of the city, not only is it economically succesfull, it´s also very customer oriented! Purposive investments are not used otherwise! The City of Hamburg holds business shares of 279 companies directly or by the HGV. Supervisory board chairman of the HGV which belongs to the city with 100% is the financial senator. His duty is to control the HGV. The HGV works closely with the share interest management of the financial authority. All processes are in the confines of the executive. The parlamentary control is made by the Bürgerschaft."
Shortly after the senator used the HGV and HSH to buy stocks of the Norddeutsche Affinarie for 60 Mio. Euros to prevent foreign influence.

Financial Times Germany

The city has tinkered itself a kind of corporation structure. The threads all lead to Freytag. A thumbs up or down is decided by Freytag and von Beust.
In the cases of Beiersdorf and Norddeutsche Affinerie main focus was on keeping the city a location for big industrial corporations.
In the meantime the city has sold it´s shares of Beiersdorf with a marginal win of 7 million euro.

Concerning the City of Hamburgs Beiersdorf Deal

At the end of the Beiersdorf case Hamburgs friendly investor Mr.Herz made a good profit due to the HGVs aquiring of shareholder values but not using them.
Tchibo’s Acquisition of Beiersdorf: In which the acquirer Tchibo, acting in concert with other shareholders, was able to purchase a control stake in the target without having to bid for the outstanding shares of minority investors. This was in violation of the German Takeover Code.
Read Financial Tunnelling and the Revenge of the Insider System. From Thomas Kirchmaier* Interdisciplinary Institute of Management London School of Economics

More senate enduced Herz enrichments...

Certified accountant Peiner

Susat & Partner Wolfgang Peiner Years after quitting as financial senator of the City of Hamburg Peiner and his company made sure that the balances of Hamburg looked clean.