Degewo's difficult path back to a rule-based society

October 3, 2023
degewo: the difficult path back to a regulated society

"Those who do not know the past cannot understand the present and cannot shape the future."

We are all subject to rules and laws, especially when it comes to the health of each and every one of us. This has been made very clear to us once again, especially in the last three years. It is a criminal offence to deliberately expose others to danger. During the Corona period, there were even Sentences against people who test positivewho were in quarantine and disposed of their rubbish.

How is it then possible that Degewo could expose thousands of tenants to a known danger over a period of several decades, even authorise renovations in asbestos flats (in residential buildings built by Degewo itself) in writing without naming the danger, and not have to fear any consequences so far? As in a previous article it seems as if Degewo is operating outside our rule-based society.

Instead of taking responsibility for its grossly negligent actions, Degewo fights affected tenants with one, two, three, four, sometimes even five lawyers. Tenants often cannot even afford a lawyer. The company wants to buy its way out by any means possible and shift the blame away from itself. But this tactic is not sustainable.

It is therefore important for Degewo to realise the problem and take responsibility for what has happened. Degewo, which was seen as a reliable landlord in the past, is now facing accusations that it recklessly jeopardised the health of its tenants by Renovation of flats with asbestos allowed.

Frank Bielkaa former senior member of Degewo, and other representatives of the company have played down the asbestos risk in the past and questioned the need to pass on information to tenants. Criminal charges were filed, but the Berlin public prosecutor's office not followed up. The company continues to act as if it has done everything right. There is even a Compliance Officer and a Degewo Ombudsmanwhich is supposed to become active in the event of "indications of criminal offences, administrative offences and other legal or regulatory violations of considerable weight". However, all of these control instruments have so far failed completely.

There is a lack of sincere remorse and acceptance of responsibility for the potential health risks to which Degewo has exposed the tenants.

Steps towards reparation and accountability:

  • Transparency: One of the fundamental steps that Degewo should take is the transparent processing of all allegations and cases in which tenants may have been exposed to asbestos.
  • Compensation: A compensation fund or similar initiative should be set up for tenants who are affected or may experience health problems in the future due to asbestos exposure.
  • Reform of risk management: Degewo must review and reform the management of health risks and building code requirements in its properties to ensure that such incidents are avoided in the future.
  • Changing the corporate culture: It is essential that a change takes place at the highest level that embeds a culture of responsibility, transparency and respect for tenants.
  • Engagement with tenants: Active involvement and communication with tenants to listen to their concerns and take measures to ensure not only physical but also psychological safety.
  • Staff changes: Should it become apparent that current Degewo staff are unable to effectively implement the necessary redress and accountability measures or restore tenant confidence, staff changes must be considered. Degewo should ensure that qualified and responsible professionals are recruited who are capable of implementing the necessary changes and reforms. This is crucial to ensure that tenants' interests are protected and safety standards are maintained.

Accountability and legal clarity

Despite the seriousness of the allegations and the potential health risks for tenants, it appears that law enforcement and the courts have been slow to act in this case. The question remains as to whether the legal framework and enforcement in Germany are strict and clear enough to be effective both preventatively and reactively.

Given the allegations levelled against Degewo and the seemingly inadequate response of the legal system, it is crucial that both political and legal discussions are held on such incidents and the existing regulatory and prosecution mechanisms.

Conclusion

Degewo is facing a challenge that not only affects the company itself, but also the legal and regulatory environment and society as a whole. The path back to trustworthiness and rule-based business practices is rocky and requires comprehensive reforms, an active reappraisal of what has happened and a clearly communicated and implemented strategy for the future.

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