WATER ABLAZE - Patagonia Sin Represas

electricity and gas supplies as well as the brown coal industry. U.S.
investment banks were also allowed to share the spoils. Goldman
Sachs arranged the privatisation of the company known as Leuna State
Combine, the largest chemical manufacturer in the former GDR.
This turned out to be a real self-service eldorado for the consultancy
firms: they produced their own value estimation reports, charging fees
of up to €2,000 per day.
By 1994, these firms of consultants had enriched themselves in this
way by more than €200 million annually for the “advisory services”
rendered. Some former East German factories were sold for the symbolic
sum of one German mark. Others were simply shut down, if this
was in the best interests of western rivals, or else bought by investors
who were then granted huge subsidies – either to “offset losses” or for
“infrastructure renewal”.
One particularly scandalous aspect of this whole affair, and one
which remains unatoned to the present day, was the treacherous behaviour
of the large consultancy firms, who offered their expert advice
not only to the Treuhand, but also to the investors who were buying
companies from the agency. This set-up put the consultants in an ideal
position to secure personal gain for the buyers. Although punishable
under criminal law, these acts of embezzlement – as well as countless
other criminal offences committed in this connection – have yet to be
brought to court!
The way agency posts were filled was also outrageous. Managers
were “subcontracted” from other companies and people who worked
for the Deutsche Bank, the Commerzbank or the Dresdner Bank
were also hired, along with employees from VEBA, PreußenElektra,
ARAG, IBM, Siemens, Hoesch, Kaufhof, Tschibo, Reemtsma and other
enterprises. Around 300 of these Treuhand staff members continued to
work for their original companies at the same time, paving the way for
fiddling and corruption. While carrying out their “duties”, Treuhand
employees were granted freedom from all liability – even in cases of
proven “gross negligence”!
Thus an area not governed by law, a kind of “exceptional”
economic zone, was created, where global players could realise their
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