Prosecutors Investigating VW Exec Who Received Bonus Payments While Suspended

Prosecutors in Germany are investigating a possible breach of fiduciary duty by Volkswagen regarding bonus payments made to an executive during the dieselgate emissions scandal.

Reuters reports that prosecutors in Braunschweig, the home region of VW in Germany, are investigating why a VW manager received 866,000 euros ($974,000) of bonuses between 2016 and 2018 while they were suspended. Prosecutors have failed to identify the manager and the German car manufacturer has declined to comment on the payments.

It is reported that the manager in question is one of five managers facing criminal charges for conspiring to cover up the diesel emissions scandal. Among these managers is former chief executive Martin Winterkorn.

Also Read: Volkswagen Hit With $10.7 Billion Investor Lawsuit Over Dieselgate

Prosecutors assert that Winterkorn and four other managers failed in their duty to inform authorities about emissions cheating across the company from November 2006 through to September 2015. Each of the managers under investigation could face up to 10 years in prison.

Lawyers advising Volkswagen reportedly told the car manufacturer not to report emissions cheating software to authorities because it was unclear if the software was illegal.

Volkswagen has also come under fire for not informing shareholders about the software before a regulatory announcement made in September 2015 confirming the use and discovery of such illegal systems. The German car manufacturer didn’t think it would face fines exceeding 150 million euros relating to the issue but the scandal is thought to have already cost the company 29 billion euros. The automaker also has a litany of lawsuits to deal with.