Did Not Launder Political Funds to Avoid Taxes, Kohl Tells Panel

Chancellor Helmut Kohl, testifying before a special investigative committee, denied Thursday that he laundered political contributions through fake charitable organizations to avoid paying taxes.

But when pressed during the 2 1/2 hours of questioning for details on party contributions, Kohl repeatedly said: “I cannot remember.”

Kohl told a committee of the Rhineland-Palatinate state legislature, charged with investigating the allegations of wrongdoing, that he could not remember details of contributions made to his party between 1969 and 1976.

Kohl served as the state Christian Democratic party boss and state premier during the period in question.

Kohl was mobbed by journalists as he arrived for the committee session smiling and relaxed. But he appeared tense and nervous under questioning.

Fringes of Scandal

The investigating committee was formed after allegations of illegal party fund-raising activities arose on the fringes of the Flick scandal.

The giant Flick holding company is alleged to have paid $8.5 million to politicians and government administrators in 1977 and 1978 to secure a $288-million tax break.

The Bonn prosecutor charged with investigating the Flick scandal reportedly obtained a copy of correspondence between Kohl and a Frankfurt bank about a $3,300 contribution made through Kohl to the Christian Democrats in 1969.

The correspondence shows that the bank made the contribution through a charitable sociological foundation, allegedly a conduit for party contributions that would otherwise be subject to taxation. It is the most damaging revelation against Kohl so far.