SPD says Hanover prosecutors are investigating Steffen Krach, and the probe may be linked to a donation he rejected and quickly returned. Krach ordered a payment of €9,900 to be returned within 24 hours after becoming aware of it in early January. Prosecutors searched three premises in Berlin and Hanover as the party faces weak polling ahead of the September 20 state election. Franziska Giffey and other SPD figures have publicly defended Krach, while the AfD's recent regional gains raise the stakes.
SPD Says Hanover Probe Into Mayoral Candidate May Be Linked To Returned €9,900 Donation

The SPD said on Thursday that a criminal investigation launched by Hanover prosecutors into its Berlin mayoral candidate, Steffen Krach, may be connected to a substantial donation he rejected earlier this year.
Prosecutors in Hanover opened the probe less than two weeks before Berliners are due to elect a new state parliament on September 20. A spokeswoman for the Hanover public prosecutors' office told dpa that three premises linked to Krach in Berlin and Hanover were searched, but she declined to provide details about the specific allegations.
Donation Returned: Fabian Fischer, treasurer for SPD Berlin, said a donation of €9,900 was transferred to the party around the turn of the year and that Krach immediately ordered the money returned. An SPD spokesman confirmed reports that the funds were transferred on December 29 (reported in some outlets as 2025) and that Krach became aware of the payment in early January, requesting the return of the money within 24 hours.
Krach has suggested the investigation may be linked to a tender process for the sale of a hospital in the Hanover region, where he still serves as the top regional administrative official. As the SPD's lead candidate in the Berlin election, he has denied any wrongdoing and called suggestions he accepted money from a bidder unfounded.
Franziska Giffey, Berlin's SPD economy minister, publicly defended Krach, saying he provided a reasonable explanation to the party and that the accusations were incorrect. According to Giffey, a bidder who ultimately lost the tender had sent the donation; Krach refused it and ordered it sent back within a day.
Political Context: The investigation arrives at a sensitive moment for the SPD, which is polling around 11% ahead of the September 20 vote and is experiencing its lowest approval ratings in decades. The Berlin election will be closely watched after the far-right Alternative for Germany (AfD) won a strong victory in the recent Saxony-Anhalt regional vote and is expected to press gains in other states that vote on the same day.
Note: Authorities have not publicly disclosed the precise allegations under investigation.
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