German prosecutors in Hamburg said on Tuesday that they have not yet determined whether to look into allegations that Chancellor Olaf Scholz helped facilitate tax evasion in connection with one of the country's largest fraud investigations.
A general prosecutor representative corroborated allegations in German media, including Tagesspiegel and broadcaster n-tv, that the office had dismissed a legal complaint filed in February that sought to initiate criminal proceedings against Scholz.
“The reports (that there is no evidence so far) are correct,” said a spokesperson, adding, however, that no decision on this had been made in the last few days.
Scholz has been under increasing criticism in relation to the ongoing "cum-ex" controversy, which began when he served as mayor of Hamburg, a port city in the north. View More
The case involves a share trading scam that the police claim cost the taxpayers billions of euros, making it the largest post-World War II fraud in Germany.
The method under investigation, known as cum-ex, often entailed quickly exchanging firm shares around a group of banks, investors, and hedge funds to give the appearance that there were many owners, each of whom was qualified for a tax break.
When questioned about his role last week, Scholz denied any improper behaviour and claimed to be unaware of the circumstances surrounding the alleged discovery of more than 200,000 euros in a party member's safe.