WATER ABLAZE - Patagonia Sin Represas

10.9 The Selling-off of Lakes in Eastern Germany
Privatisation madness is rampant everywhere. People often think
that the sale of rivers and lakes is something which is only happening
in developing countries. Far from it! For years now, and in a very
carefree manner, lakes have been sold off in Eastern Germany – but
not only lakes, however. The laws and regulations drawn up within
the framework of German reunification, in particular the reunification
treaty and the Treuhandgesetz (Treuhand Act), provide the legal basis
for these deals. The Treuhandanstalt (Treuhand Agency), also known
simply as the Treuhand, was founded with the main aim of privatising
the national wealth of the former German Democratic Republic. With
the coming into effect of the Treuhand Act in 1990, the Treuhand
Agency – and consequently the Federal Republic of Germany – became
the owner of the former GDR’s national wealth. The first president
of the agency was Karsten Rohwedder, who had earned himself the
reputation of being a tough “reorganiser” in the Ruhr steel industry.
A few opportunities for participation had graciously been included
in the Treuhand Act, but Rohwedder chose to defy these regulations.
Instead, he installed a centralist structure like the ones usually found
in large banks, thus creating the ideal foundation for the plundering
of the GDR’s wealth to the advantage of a handful of big players.
Not even the federal state governments and members of parliament
were granted access to the sales contracts relating to this large-scale
privatisation programme. On top of this, Rohwedder set up a “super
committee”, made up of representatives from McKinsey, Roland
Berger and chartered accountants from KPMG and Pricewaterhouse-
Coopers (PwC).
The most important business enterprises of the former GDR,
such as retail-shop chains, energy suppliers, newspapers, insurance
companies and banks were handed over to the largest West German
companies in the same branch. The Deutsche Bank received two thirds
of the branches of the former East German state bank; the remaining
third went to the Dresdner Bank. The Allianz AG was granted the
state’s insurance monopoly. The largest energy corporations grabbed
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