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Germany

New Scandal for German Labor Office

The head of Germany's Federal Labor Office, Florian Gerster, faced renewed criticism on Friday in a dispute over the agency's recent relaunch. The scandal involves multi-million-euro contracts awarded to management consultant, Roland Berger. He was a member of the government commission which came up with the idea for reorganizing the employment agency. Gerster denies any wrong doing and insists that the contracts were legitimate. "There are no grounds for stirring up a scandal concerning these consultant contracts," he told reporters. He added that the restructuring of the labor authority was such a major job that it could not be carried out without the support of experts. The criticism of Gerster is not the first. Recently he hit the headlines for allegedly misappropriating labor office funds by failing to advertise the contract for a planned image campaign estimated at over €1.32 million ($1.53 million).