Word: golodkowski
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Roughly half the Politburo's 26 former members are under investigation for possible treason, corruption and abuse of power. But court inquiries have been hampered by a shortage of investigators, legal questions about what exactly constituted crime in the east, and missing evidence. Alexander Schalck- Golodkowski, 58, formerly in charge of the foreign-exchange procurement agency, is being probed for fraud in the disappearance of $13 billion in East German government funds. Prosecutors have been stymied because a ton of files were hastily shredded after Schalck-Golodkowski fled to the West in 1989 to escape arrest by East German reformers...
There has been one scandal that adds up to major marks. The Politburo's once powerful economic czar, Guntar Mittag, and Alexander Schalck-Golodkowski, a shadowy financial dealer and former state secretary for foreign trade, are suspected of helping divert to Swiss bank accounts tens of millions of dollars' worth of hard currency. The proceeds came from the illegal sale of arms, artworks and other goods. The affair has become known as the Ko-Ko scandal, after the office of Kommerzielle Koordination, through which the funds were funneled. Last week Schalck-Golodkowski surfaced in West Berlin, offering to return some...
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