Source:Tradewinds

Germany’s budget committee has delayed a decision on whether to grant loan guarantees to loss-making container line Hapag-Lloyd.

The committee said on Wednesday the cash plea from the company was “opaque” and could lead to the misspending of taxpayers’ money.

The government has 24 hours to clarify the EUR 1.2bn ($1.75bn) deal.

Concerns over the guarantees, provisionally approved by the government on 28 September, focus on the role of Hapag’s second-largest shareholder, TUI.

The petition for aid “raises serious questions on where taxpayers’ money will be spent - and we need answers quick,” Free Democrats spokesman Jurgen Koppelin told reporters.

“Hapag has commissioned ships to be built in South Korea, there are plans to construct new buildings and the list goes on.”

Deputy economy minister Walther Otremba said approval could be gained by the end of the week.

TUI and majority owner, the Albert Ballinn consortium, injected EUR 315m euros of their own cash into the line last month.

TUI was not commenting on Wednesday.