Germany's Deutz in Alleged Arms Breach

German engineering firm Deutz is under investigation for allegedly breaking an embargo on supplying weapons to Myanmar, the prosecutor's office in Cologne said on Friday. Investigators have searched Deutz headquarters in Cologne and companies in Mainz and Hamburg, a spokesman said. Deutz has denied any wrongdoing. According to a report in German magazine Focus, Deutz supplied engines to a company in the United Arab Emirates (UAE) from March 2000 to March 2001. These were re-sold to a Ukrainian company which adapted them for use in armoured cars. Ten of the vehicles were shipped from Ukraine to Myanmar, the report said. A spokeswoman for Deutz, Andra Bleesen, said: "Deutz acted legally in shipping the engines to the UAE." Neither the UAE nor Ukraine is under any arms embargo. Bleesen said the engines were normally used in civilian vehicles, but could be adapted for military use. But she said the Emirati company had given Deutz assurances that the armoured cars equipped in Ukraine were destined solely for use in the UAE. A report from a non-governmental group led investigators to examine the deal.