SPD believes probe into Berlin mayoral candidate linked to donation

A probe launched into the Berlin mayoral candidate of Germany's Social Democrats (SPD) may be linked to a large donation Steffen Krach rejected at the start of the year, the party said on Thursday.

Prosecutors in Hanover have launched an investigation into Krach less than two weeks before Berliners are due to elect a new state parliament on September 20.

Three premises related to Steffen Krach in Berlin and the northern city of Hanover have been searched, a spokeswoman for the Hanover public prosecutors' office told dpa on Wednesday.

However, she declined to comment on the exact nature of the allegations.

Fabian Fischer, treasurer for the SPD Berlin, said that a donation of €9,900 ($11,500) had been made to the party at the turn of the year, but Krach immediately ordered the money to be returned.

A spokesman for the SPD confirmed a report by broadcaster rbb that the money was transferred to the party on December 29, 2025, and Krach learned about it on January 7, asking for it to be transferred back a day later.

Krach has said that he believes the probe is linked to a tender process for the sale of a hospital in the Hanover region - where he currently still serves as the top regional administrative official.

The SPD's top candidate in the Berlin election rejected any allegations that he may have taken money from a bidder in the process as baseless.

Franziska Giffey, the SPD economy minister in Berlin, also backed Krach, saying he had reasonably explained to the party that the accusations against him were wrong.

According to Krach, a bidder in the tender process, who "ended up losing anyway," had sent a donation to Krach, which the mayoral candidate had refused to accept and which was sent back within 24 hours, Giffey said.

Terrible timing for mayoral candidate

The investigation could not come at a worse time for Krach and his SPD, which is polling at a mere 11% ahead of the vote on September 20.

The party, which is part of the incumbent governing coalition both in Berlin and at the national level, has been seeing its worst approval ratings in decades.

The elections in the German capital will be closely watched, particularly in light of Sunday's vote in Saxony-Anhalt, which was overwhelmingly won by the far-right Alternative for Germany (AfD).

The anti-immigrant party is expected to make further gains in Berlin and the north-eastern state of Mecklenburg-Vorpommern, which votes on the same day.