After just a few sentences, it is already clear that the federal top of the workers' welfare (Awo) must now expect the worst: "We are shaken by what we have been presented with material so far," says Wilhelm Schmidt, president of the just 100 years old traditional welfare association.
Schmidt came to Frankfurt am Main on Monday with half a dozen inspectors and on the side of Awo federal manager Wolfgang Stadler to investigate the numerous serious allegations that have become more and more common in the past few days and weeks: a clique of itself Controlling officials have obviously shoveled huge sums of money into their own accounts for many years at the expense of the association and the taxpayer and granted themselves countless privileges.
- You can read more about the allegations here: Workers' welfare as a self-service shop
After a two-day examination, Schmidt drew up a first interim assessment on Tuesday afternoon: he was still at the beginning of the exams, he said, but it was already clear that what had happened in Frankfurt "harmed workers' welfare throughout Germany."
Frank Rumpenhorst / DPA
Wilhelm Schmidt (center), President of Workers' Welfare, at a press conference in Frankfurt
The Frankfurt Association had made headlines at times a few weeks ago because it privileged the wife of Frankfurt's Mayor Peter Feldmann unusually. The head of an Awo daycare center not only received an exceptionally high salary from the association, but also a company car that she could use as she wanted during her parental leave. The Frankfurt Awo said that the salary was reasonable, the company car was justified.
Feldmann himself had worked for Awo in Frankfurt before becoming mayor. A well-paid post was created especially for him and was not filled again after he was elected to the post of town hall boss. Feldmann admitted that he had used the association's facilities for numerous political appointments.
However, given the allegations with which the Awo top is now dealing, the affair about Feldmann almost seems like a side note. Awo officials not only approved swanky service SUVs with up to 435 hp, but in addition to their high six-figure salaries, they also received additional generous fees, bonuses and tax-free flat rates. Schmidt said that even the waiver of a company car is said to have been paid to managing directors with sums of up to 5,000 euros per month.
Salary costs of over 340,000 euros
A system of mutual favor and undermining of all control mechanisms, in which the Awo district association Wiesbaden was also involved, probably helped. For example, the Frankfurt Awo Managing Director Jürgen Richter also acted as a supervisory board member in the Wiesbaden district association. Until a few weeks ago, his wife Hannelore Richter had run the business in Wiesbaden. In addition, Hannelore Richter was employed for a fee of more than 140,000 euros a year as a "special representative" in the district association of her husband in Frankfurt and is said to have held several other offices. The association does not contest the amount, but says it was offset against Richter's earnings in Wiesbaden.
According to the internal listing of an auditor, Hannelore Richter caused annual salary costs of over 340,000 euros in the Wiesbaden district association alone. The auditors had also included costs in this figure that Hannelore Richter would not be paid, the Awo defended.
Managing Director Richter, who is said to have caused similar expenses in Frankfurt, resigned from his position last week - and emphasized that this was "no acknowledgment of guilt". The chairman of the Wiesbaden district association also resigned after the allegations became known. Likewise, the Frankfurt SPD member of the Bundestag Uli Nissen, who was the voluntary auditor of the Frankfurt Awo. She stated that she had no real overview of the financial affairs at the social organization.
"Unbearable"
Awo President Schmidt said that the auditors were unable to provide specific figures on salaries and fees actually paid after two days. The Frankfurt Awo officials had only given the examiners information in the presence of lawyers and had not yet submitted all the files. Some documents on payments to officials and advisors were also anonymized, citing data protection.
But the first review already shows that the standards of leadership and control stipulated by the Awo in Frankfurt and Wiesbaden were not met, said Federal Managing Director Stadler. Salaries in the Hessian regional associations were "completely out of control", the conditions there were "unbearable" and had to be ended as soon as possible.
The Awo federal leadership announced that it would take responsibility for the damage if the funds of the association or the taxpayer had actually been misappropriated. The Federal Awo has already frozen the transfer of federal grants for the social work of the two Hessian district associations. Schmidt may have to repay the funds. The public prosecutors in Frankfurt and Wiesbaden are also investigating suspected infidelity and fraud.
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