Nope, there is something strange here, the BND sent over 100 reports based on Curveball's information, bought a bunch of smallpox vaccines, etc.
But they did not do any basic background checking into the guys story, and did not allow the Americans to interrogate him.
from a WSJ article
QUOTE
More remarkable is that even after September 11 – when then-Chancellor Gerhard Schröder promised "infinite solidarity" with the U.S. – the German government refused to allow the CIA to interview Curveball in person. Often, the Germans resorted to dishonest pretexts for their lack of cooperation, such as that Curveball didn't speak English, when in fact he spoke it fluently (and as if nobody in the CIA spoke German or Arabic). "It was a blockade that made it impossible for any other service to validate his information," David Kay, who ran the Iraq Survey Group that looked for WMD after the war, told Der Spiegel.
even pro-germany Spiegel is sarcastic:
QUOTE
Even today, the BND has yet to admit to its own mistakes. The agency, now under the leadership of then-secret service coordinator Ernst Uhrlau, is unwilling to even answer questions about the case -- due to "fundamental considerations," as the service dryly informed SPIEGEL in response to a request.
...
In March 2004, the CIA was finally, over a period of two days, able to question "Curveball" directly. The Americans were horrified, and they quickly became convinced that the Iraqi invented the whole story. In June, Rafed was officially classified in the US as a "fabricator."
...
In all, "Curveball" is said to have been paid hundreds of thousands of euros. And the BND may now have to cough up once again. The intelligence service is considering giving "Curveball" yet another new identity, as well as one for his second wife from Morocco and for his son, who was born in Erlangen.