Financial scandal in Löhnberg: Ex-mayor in the sights of the investigators!

Financial scandal in Löhnberg: Ex-mayor in the sights of the investigators!

The municipality of Löhnberg in the district of Limburg-Weilburg is faced with a financial scandal that is very concerned with the administration and the citizens. The mayor Heiko Stock, who was employed by the Gießen regional council recently, has recently found the lack of a paid image film. This film, for which the municipality had planned around 11,600 euros in 2022, should present the municipality in more favorable light. The total cost of the project, which included the production of two films, were calculated to around 20,000 euros.

The problems in the community, however, go far beyond the disappeared film project. A test report shows blatant defects in housekeeping that lead up to a deficit of 36.5 million euros for 2017. Since 2017, no tested annual financial statements have been submitted to the Gießen regional council. Missing signatures, inadmissible additional expenses and inadequate information about the municipal council are just a few of the allegations put forward.

financial imbalance of the municipality

The financial situation of the municipality is alarming; Löhnberg is sometimes insolvent. A liquidity loan of four million euros is considered necessary, the repayment of which should take place by the end of 2027. In order to cope with this crisis, savings in different areas must already be made: association funding is deleted, daycare fees are introduced and cemetery fees increased. Even the property tax is doubled to stabilize finances.

The inability to deliver tested household figures not only have led to internal problems, but can also result in legal consequences. The municipal lawyer Maximilian Roth sees possible criminal investigations with regard to the improper handling of public funds. The test report for 2018 is already in progress, and the test dates begin at the end of January 2025.

consequences of corona pandemic

The situation in Löhnberg is part of a larger trend that was reinforced by the corona pandemic. According to a survey by the consulting company EY, many municipalities in Germany expect an increase in debt. In the old federal states, 40% of the municipalities await an increase in their debts over the next three years. The proportion of cities and municipalities with budget deficit rose from 51% to 55% compared to previous years, which illustrates the precarious financial situation of many municipalities.

In this context, the Löhnberg case is particularly worrying. While the community tries to cope with its debts and to inform the citizens about the failed test reports, the fate of the disappeared image film remains unclear. It remains to be seen whether and when the film, for which a lot of money was invested, returns in any form.