Consultant position abandoned by Brandenburg's "Mr Tesla" due to potential conflict of interest
In a recent turn of events, Jörg Steinbach, the former Minister of Economic Affairs in Germany and a prominent member of the SPD party, has been asked to suspend his consulting activities for the commercial law firm CMS, which had advised both the state of Brandenburg and Tesla in matters related to the Giga-Berlin project.
The controversy arises from Steinbach's role in obtaining planning permission for Tesla's Giga factory, located outside Berlin in Grünheide, and his subsequent consulting job with CMS, which was in matters related to the same project. A government advisory body has judged Steinbach's consulting role to breach the Ministerial Act.
Steinbach, who played a significant role in securing planning permission for the Giga factory during his tenure, denies seeking to benefit Tesla or Elon Musk, the CEO of Tesla, with his consulting role at CMS. He insists he was acting as a "freelance consultant for technology issues."
The restriction for government ministers under Brandenburg law, preventing them from taking employment related to their former position for two years, applies to Steinbach until 10 December 2026. However, the conflict of interest regulations in Brandenburg have necessitated Steinbach to pause his CMS-related work since March 2021.
Elon Musk, known for his controversial actions such as publicly supporting Donald Trump, performing an on-stage Nazi salute, and backing the AfD in Germany, continues to value Steinbach as an innovator. Despite the controversy, Steinbach maintains this sentiment towards Musk.
Steinbach has expressed "regret" in response to the government order to suspend his CMS-related work and plans to "analyze the reasoning... with his lawyer." The former minister has also acknowledged a close personal relationship with Musk.
The Giga factory in Grünheide, owned by Tesla, is a significant project in Germany's push towards sustainable energy solutions. Steinbach's role in its inception and his subsequent consulting work have raised questions about the boundaries between public service and private gain. However, the investigation is ongoing, and further developments are expected in the coming months.
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