27 October 1995

FRAUD HITS LIQUIDATION

ALLEGATIONS in leading German weekly magazine Der Spiegel point to massive irregularities during the process of liquidating the former co-op farms.

Typical of the exploitation is the case of Flatow lgp. Liquidation went ahead smoothly, with co-op members pleased at the prices paid. But when it came to the west German financial consultant handing over the income things went wrong. "He disappeared with all 2m DM," claims Hubertus Hubner, a former co-op member.

"We were victims of that west German taking advantage of our lack of understanding of what was happening. And it happened elsewhere. You have to bear that in mind when you read the claims in Der Spiegel," he says.