Renewed criticism of a state secretary in the Ministry of Economics: A media report suggests that Udo Philipp could have benefited from the political work as an entrepreneur. Now the ministry has published its holdings.
One day after State Secretary Patrick Graichen was placed on temporary retirement for violating internal compliance rules, the Federal Ministry of Economics published a list of another State Secretary’s direct shareholdings in companies. Udo Philipp has shares in four startups: 4.1 percent in Africa GreenTec in Hainburg, 13.6 percent in LMP in France, 5.1 percent in CSP in Großköllnbach and 8.3 percent in the MST Group in Munich.
The four holdings already existed when Philipp took up his post as State Secretary, the ministry said. He has not been active in any company since 2019 and has no influence on their business policy. The shares would be managed by third parties.
Also responsible for German startups
The magazine Business Insider previously reported Philipp could also have conflicts of interest, and suggested that he could have profited entrepreneurially from his work in the Ministry of Economics. “In accordance with the company’s compliance rules, it is ensured that I will not be involved in possible decisions about the company,” said Philipp himself to “Business Insider”.
As State Secretary, Philipp is responsible for industrial policy, foreign trade policy, digital and innovation policy – and thus also for the German start-up scene. The Ministry of Economic Affairs said that his work does not involve these companies, “particularly not with decisions from which they would benefit financially”.
“Business Angel” in four companies
According to the ministry, Philipp was involved with the four startups as a “business angel” before taking office. These are mostly experienced business people who help new, small companies with equity, management experience and contacts. Philipp therefore holds “small minority shares without any influence on business policy”. He is neither active on the advisory board nor on the supervisory board.
In order to avoid conflicts of interest, the Ministry has ensured that he does not make any decisions from which these companies could benefit financially. “In concrete terms, this means that State Secretary Philipp’s office ensures that State Secretary Philipp will not submit any decisions that affect these companies,” the ministry said. One of the four companies was supported by the Ministry of Economics during this legislative period, but Philipp was not involved in the decisions.