On Sunday evening, the Social Democrats in the Hamburg-Mitte electoral district were happy.

Falko Droßmann secured the direct mandate with 33.2 percent.

He is thus following in the footsteps of Olaf Scholz's confidante and former spokesman in the budget committee Johannes Kahr.

The 58-year-old Kahrs resigned in May 2020 and resigned from all political offices.

The reason given by the Colonel of the Reserve at the time was his failed attempt to become a commissioner for the armed forces.

Marcus Jung

Editor in business.

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But even then there were rumors about the closeness of Kahrs and other SPD giants to the Hamburg private bank MM Warburg, which in turn is deeply involved in the scandal of illegal share transactions around the dividend date ("Cum-Ex"). As has been reported by the media several times, Kahrs' former district association Hamburg-Mitte received at least 38,000 euros in donations from the bank or its subsidiaries.

For months, an investigative committee in the Hanseatic city has been investigating why the tax authorities may have failed to reclaim 47 million euros in possible back taxes from Warburg in autumn 2016.

First mayor of the city at that time: Kahrs' party comrade Olaf Scholz.

In April, the SPD candidate for chancellor had to face unpleasant questions in the investigative committee.

There was never any political influence by the tax authorities, Scholz emphasizes again and again.

Cum-ex deals catch up with the Hamburg SPD

Less than two days after the election success in the Bundestag election, the cum-ex deals catch up with the SPD again. On Tuesday morning, investigators from the Cologne public prosecutor's office searched offices in the financial administration of Hamburg as well as living spaces. According to media reports, the raids were directed against Johannes Kahrs, a former Hamburg Senator for the Interior and a tax officer. The prosecutors investigate because of the initial suspicion of beneficiary.

The Warburg Bank only paid the 47 million euros in the room back to the tax authorities after the Bonn Regional Court ordered the private bank's assets to be confiscated. The now suspects are said to have helped the bankers secure the benefits associated with previous cum-ex trades. If convicted later, they face up to five years in prison. The presumption of innocence applies to the suspects.

According to the Handelsblatt, the other SPD politician is said to be Alfons Pawelczyk, a former member of the Bundestag and former interior senator of the Hanseatic city.

Daniela P. is named as the tax officer.

As a department head within the tax office for large companies, she was responsible for the private bank MM Warburg.

She is suspected of favoritism, money laundering and infidelity in office.

First, WDR and Süddeutsche Zeitung reported on the development.