# Auslandshandelskammer

The German Chambers of Commerce Abroad ("Außenhandelskammer" in German, also known by the abbreviation "AHK") support German companies with establishing and extending business relations in 90 countries and 130 locations (e.g. the AHK USA). The AHKs also promote trade and joint business between Germany and a foreign country.
German chambers of Commerce Abroad have three main tasks:
* They represent German business interests in their countries and promote Germany as a business location.
* The chambers interact with politics, business and government in the respective countries to promote bilateral business relations.
* The chambers provide services to companies both from Germany and their host countries in order to support their foreign business activities, market entry, investment and export under the brand "DEInternational".
Typical services include economic and legal information, organization and support services for meetings, representations of German fairs abroad, market studies, technological transfer, environmental protection, promotion of trade and investment, public relation activities and further vocational training.
The umbrella organisation of the AHKs is the Association of German Chambers of Industry and Commerce (DIHK), which coordinates and supports the German Chambers. Furthermore, cooperation with various German trade associations strengthens the link between German chambers of Commerce Abroad and business and markets.

## Relationship with German Government, Legal Framework, Criticism and Controversies

While the AHKs collaborate with German diplomatic missions abroad and receive substantial governmental financial support amounting to yearly approx. 60 Millions Euros directly and another 25 Million Euros indirectly,they remain non-governmental and purely private entities. They are neither part of Germany's formal diplomatic apparatus nor permitted to engage in official diplomatic functions or act as a German state control agency overlooking or controlling operations of German Unions and companies abroad. Their role is purely consultative and supportive.
Their legal forms vary, including not-for-profit liaison offices (if permitted in the host country), NGOs, unions, or private business entities. The sale of consultancy services and the collection of membership fees are also restricted in some countries, depending on the legal regulations.

### Criticism and controversies

1. Resignation of Georgios Paterakis:
Georgios Paterakis, Vice President of the Deutsch-Griechische Handelskammer in Athens, resigned following an investigation by SPIEGEL. Allegations of potential conflicts of interest were raised against him, prompting his departure from office.
2. High Salary Controversy in London:
Ulrich Hoppe, the CEO of the German AHK in London, faced scrutiny after reports revealed his annual salary could reach up to €400,000. This sparked public concern and discussions about transparency and appropriateness of executive compensation within AHKs.
3. Financial Irregularities and Mismanagement:
Several AHKs have been implicated in financial irregularities over the years. Instances include improper expense claims and misuse of funds, as highlighted in reports by DER SPIEGEL. These issues have led to dismissals, legal actions, and concerns over the proper use of public funds allocated to AHKs.
4. Whistleblower Allegations in Kurdistan:
A whistleblower raised concerns about financial misconduct within the AHK in Dubai, which oversees operations in Iraq, including Kurdistan. Allegations included tax evasion, improper employee registrations, and subsequent legal actions against the whistleblower while using government funds of approx.100.000 Euros. This raised questions about governance and accountability within AHK operations.
5. Parliamentary Inquiries and Criticism:
Political parties such as the Left Party (Die Linke), Bündnis 90/Die Grünen and the Alternative for Germany (AfD) have raised multiple inquiries in the Bundestag regarding AHKs. Concerns include nepotism, misappropriation of funds, disregard for labor laws, and the competitive disadvantage faced by private consulting firms due to AHKs' subsidized services.https://dip.bundestag.de/vorgang/zuverl%C3%A4ssigkeit-der-deutschen-industrie-und-handelskammer-dihk-bei-der-%C3%BCberwachung/313654
6. Conflict of Interest and Competition with Members:
AHKs' provision of fee-based consulting services has raised concerns about conflicts of interest, particularly when competing with private German consulting firms. The substantial state subsidies AHKs receive enable them to undercut non-subsidized competitors, sparking debates about their mandate and impact on fair competition.
7. São Paulo Chamber of Commerce and the Dictatorship in Brazil:
Unresolved Entanglements: The German Chamber of Commerce in Brazil celebrates its 100th anniversary, with dictatorship supporters still being "honorary members."
The AHK São Paulo celebrated its 100th anniversary and praised its long-term president João Baptista Leopoldo Figueiredo, who led the chamber from 1948 to 1967. However, his role during the Brazilian military dictatorship was overlooked.
Figueiredo was a co-founder of the Ipês research center, which collected funds for a coup against the government of João Goulart and financed torture centers in São Paulo. Despite these entanglements, Figueiredo remains an "honorary member" of the AHK São Paulo, which also receives funding from the German Federal Ministry for Economic Affairs and Climate Action.
8. Board Elections of AHK Morocco and Disregard for Equal Opportunity:
A German businessman criticized the board elections of AHK Morocco in Casablanca, claiming that the principle of equal opportunity was violated. During the election meeting, ballots were collected before he could present himself to the members. He contested the election, but AHK Morocco rejected his challenge, citing no legally relevant grounds. The DIHK also declared itself not responsible. The businessman was later excluded from AHK, raising further concerns about the disregard for fair election practices and transparency.
9. Beer Festival Controversy in Morocco
In 2022, the German Chamber of Commerce and Industry in Morocco announced the organization of the country's first beer festival, scheduled for October 28th in Bouskoura (Casablanca). This event, intended to coincide with the famous Oktoberfest in Germany, was met with significant backlash. Critics accused the Chamber of acting in a colonial manner by imposing a foreign cultural event that disrespected Morocco's Muslim-majority population and their religious beliefs, which strictly prohibit alcohol consumption and related activities.
The announcement led to widespread outrage on social media and a political uproar, with many arguing that the festival was contrary to Moroccan identity and values. A petition launched by the Forum for the Protection of Moroccan Identity on Change.org quickly garnered over 21,000 signatures, calling for the Moroccan authorities to halt the event. The German Chamber eventually removed the festival announcement from its website and social media, sparking further speculation about the event's cancellation. Critics highlighted this incident as an example of cultural insensitivity and the imposition of foreign customs on local traditions.https://www.maroc-hebdo.press.ma/premiere-fete-biere-maroc-finalement-annule https://www.yabiladi.com/articles/details/130447/maroc-petition-contre-premiere-edition.html
10.Latest Reports by the German Federal Audit Office (Bundesrechnungshof) uncovers: Millions in Taxpayer Funding Despite Substantial Own Reserves – The Lack of Transparency in Foreign Trade Chambers (AHKs) and the Questionable Role of DIHK and BMWK.
The Foreign Trade Chambers (AHKs) are intended to support German businesses abroad. However, the German Federal Audit Office (Bundesrechnungshof, BRH) has revealed serious deficiencies in their financing. The Association of German Chambers of Industry and Commerce (DIHK), which coordinates the AHK network, receives over €50 million in federal funds annually, despite having substantial financialreserves of its own. The biggest concerns include non-transparent salaries, faulty accounting, and a lack of efficiency evaluations. Why does the Federal Ministry for Economic Affairs and Climate Action (BMWK) continue to allocate taxpayer money to this system despite these glaring issues?
1. Luxury Salaries Without Oversight The BRH's report highlights excessive salaries for AHK executives, raising serious concerns:
- Salaries are based on the highest pay grades for civil servants, regardless of actual qualifications or performance.
- In some cases, payments exceeded the permissible limits.
- The salary cap has not been reviewed since 2009.
- Performance bonuses of up to 15% of annual salaries were paid even when no ambitious targets were met.
These bonuses, originally intended as rewards for exceptional performance, have become a guaranteed part of compensation, further exacerbating the issue.
2. Faulty Accounting and Mismanagement Beyond salary concerns, the BRH also found serious deficiencies in financial management within the AHK network:
- 31.6% of reviewed transactions contained errors.
- Cash payments and travel expenses lacked clear documentation.
- Tax benefits and child allowance replacements were wrongfully granted.
- Misuse of company credit cards and unauthorized cash transactions were identified.
These irregularities have persisted for years without consequences, raising questions about accountability and enforcement.
3. Lack of Performance Evaluations: A Funding Strategy Without Impact?
Despite receiving millions in taxpayer funding annually, there is no comprehensive assessment of whether the AHK network is achieving its intended goals. The BRH criticizes the following:
- The BMWK cannot demonstrate whether funding is used effectively.
- Performance indicators are outdated or inadequate.
- No comparative benchmarks exist – in fact, for 2024, fewer delegation trips and inquiries are planned than in 2022.
This raises the fundamental question: Why is taxpayer money continuously allocated to an institution without any meaningful impact assessment?
4. DIHK: High Financial Reserves, Yet Millions from the Federal Budget
Perhaps the most critical point in the BRH's findings: The DIHK has significant financial reserves, yet it continues to receive millions in federal funding.
- The BRH emphasizes that the distribution of these funds remains opaque.
- Despite having the financial capacity to self-fund more activities, the DIHK relies heavily on taxpayer money.
This lack of financial responsibility raises concerns about why the DIHK does not cover more of its own expenses instead of continuing to depend on federal subsidies.Bericht vom Bundesrechnungshof - 1 Bericht vom Bundesrechnungshof - 2