Deutsche Telekom raided over alleged spying

PROSECUTORS RAIDED the Bonn headquarters of Deutsche Telekom yesterday as part of an investigation into possible criminal actions…

PROSECUTORS RAIDED the Bonn headquarters of Deutsche Telekom yesterday as part of an investigation into possible criminal actions by former executives during an alleged spying campaign targeting directors and journalists three years ago.

Public prosecutor Friedrich Apostel said former chairman Klaus Zumwinkel, ex-chief executive Kai-Uwe Ricke, and six employees past and present were “within the scope” of an inquiry to establish if charges will follow.

Mr Ricke, chief executive until late 2006, could not be reached. But he has in recent days repeatedly denied any knowledge of wrongdoing in various German media. He has admitted leaks were an issue for management.

Mr Zumwinkel’s spokesman yesterday referred to a statement issued on Tuesday in which Mr Zumwinkel, chairman until the start of this year, said that “any alleged data gathering happened without [his] agreement”.

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The prosecutors’ move is another blow to Mr Zumwinkel. He quit his Deutsche Telekom post in February after being named a suspect in a tax-evasion case. People close to the matter said the raid on Deutsche Telekom’s headquarters was meant to produce more potential evidence. The company’s current management passed files to the authorities two weeks ago.

Deutsche Telekom admitted on Saturday it had passed on to authorities allegations that staff had ordered the monitoring of phone bills to trace leaks in 2005 and 2006. The suspicion that the former state telecoms group might have breached stringent privacy laws has scandalised the nation. Deutsche Telekom officials fear damage to the brand just as the group is managing to stem a recent flight by clients to cheaper rivals. – (Financial Times service)