For months, the Court of Auditors (RH) has denounced the overfinancing of state aid for corona. In a new report, farmers and landlords are now being targeted by the inspectors. By the end of 2021, a total of EUR 178.5 million in support had been paid to agriculture, forestry and private landlords. The RH sees an overfinancing of at least 9.7 million euros.
According to a current RH audit report, the support measures implemented by Agrarmarkt Austria (AMA) showed “significant shortcomings”, including no proof of losses was required.
“Potential for multiple financings”
The emergency fund directive and the special compensation directive created the possibility of multiple grants because several grants could be applied for at the same time.
Image: Corona aid in Austria
RH criticizes relevant ministries
The Court criticizes the fact that the Ministry of Agriculture and the Ministry of Finance allowed this, although the possibility of over-financing became clear when the emergency fund directive was drawn up. The Ministry of Agriculture, the Ministry of Finance and the Ministry of Economic Affairs have indicated in their statements that the Court’s recommendations will be taken into account should similar support programs be required in the future.
At the end of 2021, 178.5 million euros in corona support was paid to agriculture and forestry and to private room landlords. According to the Court of Audit, 1,066 agricultural and forestry companies and 917 private room landlords received 5.2 million euros more than the stated loss of income under the financial instrument “Compensation for loss of income”.
For example, a loss of turnover of 50 cents was sufficient to receive a “compensation for loss of income” of 1100 euros per application. Even with sales replaced by the lockdown, the financing volume for 1,385 agricultural and forestry activities and 2,303 private room rentals was a total of 4.54 million euros higher than the reported turnover.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
