Schwesig and the Climate Foundation: A question of credibility

The combination of Nord Stream 2 with the climate foundation was criticized from the start. For the Schwerin head of government, dealing with it is now becoming a problem. It has long been about Schwesig’s credibility.

One thing has long been certain: the MV Climate and Environmental Protection Foundation has become a political shackle for Prime Minister Manuela Schwesig. Your former pet project is now considered a symbol of Russia-friendly politics. Rarely has a political project, which was controlled centrally in Schwesig’s state chancellery, crashed so hard against the wall – despite many warnings in advance.

A tax officer in the Ribnitz-Damgarten tax office delivered the last receipt for the time being. To cover up her own mistakes, she took three important documents from the foundation home and burned them in the fireplace. Opposition politicians speak of a “banana republic” with regard to Schwesig’s north-east.

20 million from Gazprom

Everything should be so beautiful. After many discussions with Nord Stream managers, who went in and out of the state chancellery and the ministries in Schwerin, it was clear around the turn of the year 2021/22: the Russian state-owned company Gazprom would initially support the foundation with 20 million euros from the profits Finance gas – later maybe even more. In return, the foundation should enable the Kremlin to complete construction of the Nord Steam 2 Baltic Sea pipeline, bypassing US sanctions. The trick: The foundation set up a company to do it.

Schwesig’s mistake

At the time, the allegations that sounded rather harmless were “cheating”, “fake foundation”, “camouflage organization”. The state government was given a hand money, so to speak – managed by Schwesig’s predecessor, Erwin Sellering (SPD). Like Schwesig, the head of the foundation had a particularly close relationship with Russian gas companies – for example, he installed so-called Russia Days in Mecklenburg-Western Pomerania and traveled to St. Petersburg in 2014 for the birthday reception of the gas lobbyist, former Chancellor Gerhard Schröder (SPD). President Vladimir Putin was also there.

Sellering and his foundation should polish up the rather meager balance sheet in climate protection – with daycare projects such as “digging for trees”, because even then Schwesig’s government was making little progress on renewable energies. She is certain, Schwesig said on January 7, 2021 when the foundation was founded in the state parliament, “that in a few years many will say it was the right way, it has brought something to our country”. Schweig was wrong. The Climate Foundation has triggered its loss of reputation in federal politics, dealing with this problem has accelerated the crash. In the meantime, it’s about the basic capital in politics – it’s about trust and credibility.

What did Schwesig know?

What did Schwesig know about the burned tax documents and what did she not know? The answer to the question seems tricky, in the end there is statement against statement. Review: The foundation had already submitted applications for exemption from gift tax in 2021. That seemed necessary, because a tax would have consumed half of the capital. Schwesig didn’t want that either – she always spoke of 20 million euros for climate protection, the full amount that Gazprom released. A gift tax was never publicly discussed.

However, the foundation’s applications did not end up with the responsible office in Ribnitz-Damgarten, but with the colleagues in Rostock. They only sent the papers to Ribnitz-Damgarten months later. But there they were “spilled”. The young official “fanned” them, the papers slipped into another process with a paper clip, Finance Minister Heiko Geue (SPD) clarified last week. Only when the tax advisor of the foundation inquired about the status of the processing on February 28, 2022 was an internal search initiated in the tax office.

Opposition speaks of “robber pistol”

The timeline is striking: the foundation asked four days after the start of the Russian attack on Ukraine. Apparently, there were fears that the mood would turn against the foundation. A day later, the state parliament passed the resolution that the foundation should be dissolved. The debate was heated – the tax officer noticed that too, according to Finance Minister Geue in his account of the events surrounding the burned tax file.

The employee initially asserted that she knew nothing of the whereabouts of the files. Then she researched more intensively and discovered the documents. In order to cover up the mistake, according to Geue, she finally burned the papers. Shortly thereafter – on April 25, 2022 – she became remorseful and explained herself to her boss.

The result: investigations, fines and disciplinary proceedings. However, no damage was caused, the documents had already been requested beforehand and the process was properly processed.

The CDU opposition in the state parliament still speaks of a “robber’s pistol”. She suspects more. In a press conference, however, the Finance Minister asserted that there had been no political pressure in the “Climate Foundation” tax case and that the Prime Minister had not been informed either. Geue put it on record that he found out about the burned files at the end of April 2022, but did not inform his boss – “because of tax secrecy”.

Information “on the short official way”?

Schwesig supported the presentation on Sunday in Report from Berlin. She does not interfere in tax proceedings, it is correct that Geue did not inform her.

Outside of the red-red coalition, doubts about this portrayal can be heard everywhere in political Schwerin – including from a former minister. Ex-CDU Economics Minister Harry Glawe, who was also Schwesig’s deputy for a long time during the red-black government, had vehemently spoken out in favor of the foundation in 2021.

Glawe said that NDR, Schwesig’s wish had always been to be informed about every detail. He considers it “extremely unlikely” that the prime minister was not informed by her finance minister shortly after the internal report at the end of April 2022 about the important process of tax documents, at least via “the short official channel”. With a view to working with Schwesig, Glawe said: “I would have done it.”

Other participants who do not wish to be named also have doubts. They report that in the abundance of information, Schwesig has sometimes forgotten things about which she had previously been informed – orally, via “short official channels”.

Sellering and Schwesig are no longer friends

The foundation remains a problem for the head of government. After the Russian war of aggression, she wanted to dissolve her former flagship project as quickly as possible – but her party friend Sellering opposed it. Legally, it was set up “for eternity,” says the administrative lawyer. He and Schwesig have long fallen out – the state government wants to push the foundation “in front of the hole” to distract from their own misconduct, he scolds.

Sellering came up with a little meanness and suggested that his successor in office, Schwesig, testify as a witness in the tax proceedings before the Greifswald Finance Court. There is a lawsuit by the foundation against the decision on gift tax – 9.8 million euros were due last September. In the eyes of the foundation, an unfriendly act that should only serve to finish off the foundation.

According to Sellering, Schwesig could testify that the boss of Nord Steam 2, Matthias Warnig, explained the details of the 20 million euro payment to her in a private conversation. What Sellering means: Warnig clearly said that the sum should be used for climate protection. An orientation towards the common good, according to the foundation, excludes a gift tax. Schwesig explained that a gift tax was never discussed.

There are doubts about that too. The opposition wants it in the investigative committee of the state parliament clarify who has been dealing with the processes surrounding the climate foundation since May 2022. The Rostock political scientist Wolfgang Muno recently complained that clarification there is only progressing slowly. The tax law case is also dragging on. According to a spokeswoman, a decision on the gift tax can no longer be expected this year. Schwesig will not get rid of the foundation any time soon.