SHARE
COPY LINK

CRIME

Politicians irked by more car scrapping premium fraud

Politicians are calling for tighter controls after further reports of criminal misuse of Germany’s "cash for clunkers" car scrapping premium emerged this week.

Politicians irked by more car scrapping premium fraud
Photo: DPA

The BDK criminal investigative alliance reported on Wednesday that up to 50,000 cars have been illegally sold to places like Africa and Eastern Europe instead of being scrapped as agreed.

The popular Abwrackprämie, or car scrapping premium, was part of Germany’s second stimulus plan and gives €2,500 ($3,500) to those who junk a car that is at least nine years old for a new one. The measure has boosted car sales significantly, but reports of fraud are on the rise.

While there is no concrete data for such incidences in Germany, BDK leader Winfried Albishausen told broadcaster ARD on Thursday that his organisation has logged some 200 “coincidental finds” in the port city of Hamburg and in the state of Baden-Württemberg. Selling the cars abroad is an easy way for criminals to make money because there is low risk for being caught, Albishausen said.

Finance Minister Peer Steinbrück has already said the government should look into the misuse of the funds.

Meanwhile, transport policy expert for the pro-business Free Democrats Patrick Döring told daily Bild on Thursday that the government should begin a special commission to stop the fraud.

“Customs, criminal investigators and the Federal Office of Economics and Export Control (Bafa) must conduct more spot checks at scrap merchants,” he said.

Head of the Christian Social Union parliamentary party group, Hans-Peter Friedrich, also called for stricter control on the government funds.

“Those who take part in fraud should know they will be followed without mercy,” he told Bild.

Last month reports surfaced that fraudulent claims on scrap cars from Germany have gleaned millions of euros in the Netherlands, and some of the vehicles are coming from the popular Abwrackprämie.

The car scrapping premium began on February 20 as part of the government’s attempt to stimulate growth after the financial crisis. It was designed to encourage used-car buyers to add their old cars to the scrap heap for new, cleaner-burning autos.

In early March German officials changed the rules for the scrap premium due to fraud because some people were selling their old cars instead of scrapping them. Those who apply for the premium must now provide the original vehicle registration for the scrapped car instead of just a photocopy.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

CRIME

Two Ukrainians killed outside shopping centre in Bavaria

Two men were killed in front of a shopping centre in Murnau, a town in the Bavarian district of Garmisch-Partenkirchen, on Saturday.

Two Ukrainians killed outside shopping centre in Bavaria

A 36-year-old man died from his injuries at the scene, while a 23-year-old man was taken to hospital with serious injuries, where he later died, police said on Saturday evening.

Both of the victims were Ukrainian citizens who lived in the Garmisch-Partenkirchen district, police said.

The same evening, police arrested a 57-year-old suspect – said to be a Russian national – who lives near the crime scene.

The 57-year-old is now being investigated on suspicion of murder.

“The exact course of events, background and motive are now the subject of the criminal investigation,” the police said.

The public prosecutor’s office has applied for a warrant for the suspect’s arrest.

SHOW COMMENTS