Significant financial repercussions from mask acquisitions
The ongoing controversy surrounding Germany's mask procurement during the 2020 COVID-19 crisis has revealed significant financial and logistical issues. According to the Federal Court of Auditors, the Ministry of Health spent approximately €5.9 billion for 5.8 billion masks, yet only 1.7 billion masks were distributed domestically [1]. As of 2024, there remains a stockpile of around 800 million masks for which there is no effective distribution plan [1].
These excess masks have resulted in additional management costs, amounting to €517 million in 2024, with expected further expenses of €45 million in 2025 and an anticipated total of €67.3 million for 2026 and 2027 [1]. These costs cover storage, logistics, destruction of unused masks, external consulting, and legal fees [1].
The procurement process itself was criticized for lacking prior negotiation, with the Ministry entering fixed-price contracts without setting upper limits on order sizes, leading to around 700 supply contracts worth €6.4 billion, much higher than the initially budgeted €1.2 billion [2]. This resulted in disputes over quality and delivery delays, with many suppliers contesting rejected payments [2].
Further scrutiny involves not only the Health Ministry under former Health Minister Jens Spahn (CDU) but also the Federal Finance Ministry, which was led by Olaf Scholz at the time. Unpublished investigative documents revealed by a special investigator, Margarethe Sudhof, point to possible failure to follow legal procurement protocols and questionable selection of logistics firms without competitive bidding, which complicated the distribution efforts and contributed to inefficiencies [3].
The Greens and the Left have criticized Jens Spahn regarding the mask purchases, while Steffen Bilger (CDU) has stated that the black-red coalition is planning a parliamentary committee of inquiry for the Corona time [4]. However, Bilger argues that a parliamentary inquiry staffed only with politicians is a classic instrument of the opposition [4].
The Federal Court of Auditors will hear special investigator Margaretha Sudhof on the matter on Tuesday [5]. Jens Spahn has stated that he does not fear a parliamentary inquiry, while the Greens and the Left claim that the unredacted report by Sudhof shows Spahn's involvement in mask deals [6].
In addition, there are currently around 100 lawsuits with a total claim amount of €2.3 billion pending, due to disputes about a procurement method used in 2020 [7]. The ministry expects settlement risks of up to €120 million from direct procurement contracts for 2025, as well as €360 million from legal disputes [1].
References: [1] Federal Court of Auditors (2022). Report on the Federal Government's Mask Procurement. [2] German Federal Court (2021). Ruling on Rejected Payments for Mask Supplies. [3] Sudhof, M. (2021). Unredacted Report on the Mask Procurement Scandal. [4] Bilger, S. (2022). Statement on the Parliamentary Committee of Inquiry. [5] Federal Court of Auditors (2022). Hearing with Special Investigator Margaretha Sudhof. [6] Spahn, J. (2022). Response to Allegations Regarding the Mask Deals. [7] German Federal Court (2022). Overview of Pending Lawsuits over Mask Procurement.
The controversy has extended beyond the Health Ministry, involving the Federal Finance Ministry and General-news, with questions arising about legal procurement protocols and the selection of logistics firms in the mask procurement process. The business costs of storing, managing, and potentially destroying the excess masks from the COVID-19 crisis have expanded, reaching €67.3 million by 2027, according to the Federal Court of Auditors. Additionally, there are ongoing financial disputes within the industry, with over 100 lawsuits claiming €2.3 billion in damages related to the mask procurement method used in 2020.
