German tax probe triggers CEO resignation

BONN, Germany, Feb. 18 (UPI) -- Deutsche Post AG Chief Executive Officer Klaus Zumwinkel resigned Monday, a day after German investigators alleged he had engaged in a tax dodge.

Prosecutors suspect Zumwinkel avoided paying $1.47 million in taxes by investing in a Liechtenstein trust, The Wall Street Journal reported.

On Friday, the principality's largest bank group, Liechtenstein LGT, announced that data stolen from a subsidiary trust in 2002 may have been illegally disclosed and that German prosecutors appeared to be using the data in their investigation.

The investigation and resignation comes during a period of public debate over the wealth of top executives in Germany. German Finance Minister Peer Steinbruck said, "The moral damage is considerable."

Zumwinkel will also resign from his post as supervisory board chairman of Deutsche Telekom AG but his position on the board of Morgan Stanley is uncertain, the report said.

Management board member Frank Appel and Chief Financial Officer John Allan are seen as possible successors to Zumwinkel, analysts said.