Bilderberg.org

[TonyGosling]

To add to Conrad Black and Lord Browne.
Surely they can't all think they are above the law?
Can they?

Mr Zumwinkel, 64, had admitted tax evasion. On Thursday prosecutors said he was suspected of failing to pay taxes totalling €1m (£750,000).

Zumwinkel quits as Deutsche Post head as German tax probe widens

By Gerrit Wiesmann and Richard Milne in Frankfurt and,Hugh Williamson in Berlin

Published: February 16 2008 02:00 | Last updated: February 16 2008 02:00

The tax-evasion scandal in Germany claimed its first victim yesterday when Klaus Zumwinkel, a veteran of the nation's corporate elite, quit as chief executive of Deutsche Post and chairman of Deutsche Telekom.

People close to the investigation said state prosecutors suspected 750 individuals of holding undeclared trusts in Liechtenstein, robbing the German ex-chequer of hundreds of millions of euros.

These people told the Financial Times: "We are sitting on a mountain of names, including several of international prominence akin to Mr Zumwinkel." Nothing pointed to the involvement of top executives of other blue-chip companies, however.

Details were said to have come from a disc containing account details from LGT, Liechtenstein's largest bank, controlled by the royal family. But other banks - one is based in Switzerland - were also said to be involved.

The revelations led to blunt reactions from German politicians, who fear the scandal will raise public dissatisfaction with the business establishment in the midst of a banking crisis, job transfers abroad, and long de-bates over executive pay.

Berlin must also move quickly to find new top executives for the former postal and telecoms monopolies, in which it holds just over 30 per cent apiece.

Frank Appel, Deutsche Post logistics director, was seen as the favourite to succeed Mr Zumwinkel. But the top candidate for the Telekom chairman's job, Wolfgang Reitzle, Linde chief executive, was reluctant, officials said.

Angela Merkel, the chancellor, said the scandal triggered by Mr Zumwinkel was difficult and depressing and his resignation unavoidable. The scale of his alleged tax evasion was "beyond my imagination and beyond that of many people".

Officials said Ms Merkel was likely to use a meeting next week with Otmar Hasler, Liechtenstein's prime minister, to call for an easing of its bank secrecy rules.

Peer Steinbrück, finance minister, told N24-TV that Mr Zumwinkel, 64, had admitted tax evasion. Mr Zumwinkel's legal and media advisers declined to comment. On Thursday prosecutors said he was suspected of failing to pay taxes totalling €1m (£750,000).

Wound reopened, Page 22