SAXON STATE premier Georg Milbradt has rejected responsibility for the near-collapse of Sachsen LB bank after its Irish subsidiary ran into financial difficulties last year.
Speaking at a parliamentary inquiry into the affair, Mr Milbradt blamed the bank's board for allowing risky off-balance-sheet dealings that forced the bank's sale in December at a knock-down price.
"There can be no political liability for affairs that didn't reach the political level," said Mr Milbradt. The CDU politician was Saxon finance minister when Sachsen LB was established in 1992 and is viewed by many as the "father" of the bank.
He rejected that view at the inquiry, brushing off opposition claims that he kept a close interest in bank activities even after he left the finance ministry in 2001.
He cited a recent consultant's report that the near-collapse was brought about by the ignorance of the bank's board about the risky dealings of the bank's Irish subsidiary.
"Dublin was not supposed to make itself autonomous and escape the control of Sachsen LB boards," said Mr Milbradt. "It was important to me that the outsourcing of the business to Dublin didn't come at the expense of the influence and control of the advisory committees."
The consultant's report said this is exactly what happened: information on the Dublin operations was incomplete and the board in Germany was not fully informed about the subsidiary's activities.
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