COMMENT: It comes as less than a shock  to learn that German intelligence has destroyed a sensitive file on a neo-Nazi terror group  that had eluded capture for many years, despite the commission of many serious crimes, including bank robbery and the murder of a policewoman. (Tip of the hat to R. Wilson on this story.)
Evolved from personnel and institutions  inextricably linked with the Third Reich , the postwar German government has a history of being “less than vigorous” in investigations of criminality involving “neo” Nazis .
Note that the files were destroyed immediately before they were to be turned over to prosecutors! Previously, it had been reported that German domestic intelligence may have helped to fund the group.
“Nobody here but us chickens!”
It is against this background that we examined the acknowledgement of Nazi participation  in the Olympics Massacre of 1972. Who provided the false passports obtained by the Nazi element for the Palestinian killers?
“German Secret Service Destroys Files on neo-Nazi Terrorist Gang the National Socialist Underground: Vital Information Was Shredded on the Day It Was Due to Be Handed to Federal Prosecutors” by Tony Patterson; The Independent [UK]; 6/29/2012. 
EXCERPT: Germany’s equivalent of MI5 has found itself at the centre of a deepening intelligence service scandal after it was confirmed yesterday that its agents had destroyed files containing vital information about a neo-Nazi terrorist gang hours before the material was due to be handed to federal prosecutors.
The case concerns the National Socialist Underground, a neo-Nazi group responsible for Germany’s worst acts of far-right violence since the Second World War. Its members murdered a policewoman, shot dead nine immigrants, mounted two bomb attacks and robbed 14 banks to finance their operations.
Police discovered the bodies of the gang’s two ringleaders, Uwe Mundlos and Uwe Böhnhardt, in a burned-out caravan in eastern Germany last November. Investigators established that they had committed suicide after robbing a bank. A third member of the gang, Beate Zschäpe, was caught and arrested. She is still being questioned.
Details of the scandal were leaked to the German news agency DPA yesterday, prompting German Interior Ministry officials to admit that domestic intelligence service agents, who had been keeping the gang under surveillance for more than a decade, had destroyed files containing information about the group.
They revealed to a parliamentary inquiry that the agents had shredded the documents on November 11 – the day they were due to be handed to Germany’s Federal Prosecutor, who had taken over the investigation. . . .