Surveys begin – real estate magnate Benko in the focus of the committee

Abuse of power, millions in funding and billionaires. The investigative committee that starts today on the COVID-19 Federal Financing Agency GmbH, or COFAG for short, is a difficult one. But what is it all about? As is known, the entire country was closed in March 2020 due to the measures related to the corona pandemic. The government came under pressure on economic policy. A legislative package on COVID-19 was adopted in April to take the necessary measures to contain the virus and provide economic relief to the Austrian economy. No less than 38 billion euros were promised to the red-white-red economy to support the Corona crisis.

„“Quick and efficient”?
19 billion euros of this, the resources from the so-called Corona Aid Fund, were managed by the specially established Federal COVID-19 Financing Agency GmbH, COFAG for short. According to its own statements, COFAG’s task was to “take financial measures quickly, efficiently, transparently and comprehensibly to maintain solvency and bridge the liquidity problems of Austrian companies during the Corona crisis”. Guarantees, fixed cost subsidies, loss compensation, standard bonuses and lockdown sales compensation were provided.

Criticism from the Court of Auditors
For reasons of transparency, the agency also planned “regular reporting to the National Council.” It was there that the agency became a problem for other reasons. The Court of Auditors sharply criticized the agency, and the Constitutional Court even destroyed its foundations. In November 2023, the two proven faction leaders of the U-Commission, Kai Jan Krainer (SPÖ) and Christian Hafenecker (FPÖ), agreed to establish a commission of inquiry into the service. The NEOS spoke out against this.

Billionaires close to the ÖVP preferred?
The subject of the committee that starts today is the possible preferential treatment of people who have assets of at least one billion euros and who have supported the ÖVP through donations or whose support has been requested by the ÖVP. The focus of the investigation should be on COFAG and its payments to billionaires close to the People’s Party. The focus is mainly on payments to real estate juggler René Benko and billionaire Siegfried Wolf, who, according to Krainer and Hafenecker, probably received preferential treatment.

The tax files of entrepreneurs Franz Rauch, Stefan Pierer and Johann Graf were also requested from the Ministry of Finance. Based on the chat messages, some of which are already known, from the former head of the Austrian holding company ÖBAG, Thomas Schmid, the connections and financing will be further investigated. In connection with Benko, the Greens even want to invite an employee of the tax authorities for large company audits to appear before the committee.

The two Green MPs Nina Tomaselli and David Stögmüller also submitted requests for the delivery of all files on Signa Holding, Laura Privatstiftung, Signa Luxury and Schlosshotel Igls, and later Chalet N. Benko was said to have been his best guest at the luxury resort. , reported the “Crown”. The Ministry of Finance provides parts of the files – including rent arrears amounting to millions of euros – but initially refused to hand them over to Chalet N. and the private villa. Neither of these can be attributed to Benko.

The companies attributed to real estate juggler Benko alone received 18.7 million euros from the Covid Financing Agency (COFAG) during the coronavirus pandemic. This is evident from figures from the Ministry of Finance’s transparency portal. That is too much for the liberal party leader Christian Hafenecker. The limit of 14 million euros set by the European Commission for business associations has therefore been exceeded.

Most of the funding went to the Kika/Leiner group. In concrete terms, the amount for these companies in the years 2020 to 2023 is approximately 9.1 million euros. The NEOS committee also focuses less on COFAG and more on the business and financial management processes of the real estate juggler. We go back to 2018, when Benko bought Kika/Leiner, the furniture store chain that later received millions in Corona aid and went bankrupt last year.

There are indications that it was already known in 2018 that Benko was only concerned with real estate and never with saving 5,000 jobs, as the then turquoise blue government claimed. For this purpose, explosive chats should be presented – from Schmid’s mobile phone, which is still very productive.

Benko and bank secrecy
Meanwhile, in Vorarlberg, the board of Hypo-Landesbank went public after accusations that the bank had carelessly provided loans to the Signa Group. Freed from banking secrecy, CEO Michel Haller spoke about “complex issues” that were apparently “incomplete” or even “misrepresented”. For example, Hypo participated in the ‘Chalet N’ in Lech (secured with 20.8 million euros in liens) and in two other projects with 4.1 million and 5.2 million euros in liens. According to Haller, the loan for the ‘Family Benko Private Foundation’ amounts to 47.3 million euros. As Haller also explained, the foundation’s balance sheet at the time of the 2020 loan decision showed a reported result of 102 million euros. The share of debt capital was low. It is still uncertain how much money the bank will actually lose as a result of the various bankruptcies in the Signa bubble palace.

Benko arrives on April 4
Back to the committee: Benko himself was originally invited to the committee for the second committee day on Thursday. Benko’s lawyer Norbert Wess canceled this appointment for his client, but agreed to the interview on April 4.

The committee will examine a total of four evidence topics and in a period from December 18, 2017 to November 23, 2023, the day the committee was established – and therefore from a time when there was no evidence of the pandemic or the speech of the desk was. Krainer and Hafenecker justified this by saying that they also wanted to take a closer look at the donors of the “Ballhausplatz” project. The former Minister of the Interior and current head of the Financial Prosecutor’s Office Wolfgang Peschorn and Erika Reinweber, a former employee of the Ministry of Finance, were invited today to the first of seven planned committee days.

Peschorn could provide information about the extent of the damage due to the various causes – and whether the Republic will participate as a victim in the criminal proceedings. Reinweber, meanwhile, was responsible for supervising the board of directors on large-scale audits – for example responsible for determining how much taxes Signa Holding should pay. It is hoped that Reinweber will gain insight into important positions and explosive issues: the alleged tax discount for entrepreneur Wolf, which is being investigated, and the move of Benkos Signa from Vienna to Innsbruck, probably to save taxes. The NEOS suspect a structural preference for certain actors in the Innsbruck tax office. In the University Committee they want to make it clear why. The “Krone” is ready for you with a live ticker.