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Last Updated: Friday, 11 November 2005, 16:37 GMT
VW scandal probe to cost 5m euros
VW car
The scandal erupted earlier this year
Carmaker Volkswagen has said an inquiry into allegations of corruption at the firm will cost 5m euros ($5.8m; 3.4m).

VW hired audit firm KPMG to look into the bribery claims and the report was given to the firm's board on Friday.

Prosecutors are still investigating allegations that former VW managers took bribes and set up companies to secure foreign contracts for VW.

There were also claims that union leaders at the firm were bribed with holidays and prostitutes.

VW also announced that it had appointed Horst Neumann as its new personnel director. Mr Neumann is currently a board member at VW's luxury arm Audi.

The emergence of the scandal earlier this year led to the resignation of VW's previous personnel director, Peter Hartz, in July. Mr Hartz has denied any wrongdoing.

The carmaker's chief executive Bernd Pischetsrieder pledged to make the company more transparent, and the firm is planning an ombudsman system to deal with internal complaints.

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