VW board eyes damage claims against former CEO Winterkorn

Martin Winterkorn, former CEO of the German car manufacturer ‘Volkswagen’ (AP/Michael Sohn, file)
Updated 06 May 2018
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VW board eyes damage claims against former CEO Winterkorn

  • Volkswagen has admitted to programming its diesel engines to activate pollution controls when being tested in government labs and turning them off when on the road
  • Former VW CEO Martin Winterkorn denies any wrongdoing, saying he was not aware of the issue

BERLIN: A VW spokesman says the German automaker’s supervisory board is checking whether it can demand damage claims from former VW CEO Martin Winterkorn in connection with the company’s diesel emissions cheating scandal.
Michael Brendel tells German news agency dpa “the investigation has been going on for quite some while and is conducted independently from the authorities’ investigation.”
German newspaper Frankfurter Allgemeine Sonntagszeitung reported Sunday that Winterkorn could lose his property in connection with the company’s investigation.
Winterkorn, 70, was indicted Thursday in the United States on charges stemming from the company’s diesel emissions cheating scandal.
Volkswagen has admitted to programming its diesel engines to activate pollution controls when being tested in government labs and turning them off when on the road.
Winterkorn has denied any knowledge of the scheme.


Moody’s sees risk of Lebanon debt rescheduling despite budget

Updated 6 min 39 sec ago
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Moody’s sees risk of Lebanon debt rescheduling despite budget

  • The draft budget aims to cut the deficit to 7.6 percent of gross domestic product from 11.5 percent last year
  • Lebanon has long depended on financial transfers from its diaspora to meet the economy’s financing needs
BEIRUT: Slowing capital inflows to Lebanon and weaker deposit growth increase the risk of a government response that will include a debt rescheduling or another liability management exercise that may constitute a default, Moody’s Investors Service said.
This was despite fiscal consolidation measures included in the draft 2019 budget that is being debated in parliament, Moody’s said in a June 25 credit analysis.
Asked about the report, Finance Minister Ali Hassan Khalil said on Thursday “matters are under control.”
The draft budget aims to cut the deficit to 7.6 percent of gross domestic product from 11.5 percent last year, with Lebanese leaders warning the country faces financial crisis without reform.
Lebanon’s public debt is 150 percent of GDP, among the largest in the world. State finances are strained by a bloated public sector, high debt-servicing costs and subsidies for power.
The Moody’s report said: “Despite the inclusion of fiscal consolidation measures in the draft 2019 budget, slowing capital inflows and weaker deposit growth increase the risk that the government’s response will include a debt rescheduling or another liability management exercise that may constitute a default under our definition.”
Lebanon has long depended on financial transfers from its diaspora to meet the economy’s financing needs, chiefly the state budget deficit and the current account deficit of an economy that imports heavily and exports little by comparison.