Audit shows VW board member at Czech subsidiary Skoda misspent $1 million on luxury trips

13-11-2005

An auditor's investigation into claims of bribery and kickbacks at the German carmaker Volkswagen Group has detailed more than $1 million in company money that two former executives spent on luxury trips and parties. AP reports that an audit by KPMG International says Helmuth Schuster, a board member of Volkswagen's Czech subsidiary Skoda, and a high-ranking member of the personnel department, took luxury trips, hosted private parties and used VW money to pay for it, the automaker said. Volkswagen called in prosecutors earlier this year to clear up allegations that former managers set up fake companies in the Czech Republic and India, to defraud local authorities seeking business with the carmaker.