The largest bankruptcy in Austrian economic history should also mobilize a large number of forces in the Austrian judiciary to minimize the damage to creditors and taxpayers. And: uncovering possible crimes before bankruptcy is declared. You would think so.
Apparently the investigation into the Signa complex involving René Benko and Co. is progressing. are involved rather slowly. And this is clearly not just due to the corporate jungle that Benko and his advisors have deliberately made opaque for years.
At the end of November, Signa Holding, the parent company of the Benko empire, went bankrupt. The two most important core companies, Signa Prime and Signa Development, followed at the end of December. Despite a large number of serious allegations from numerous victims, it was not until March 4 that the Soko Signa special unit received the order to start operations from the Public Prosecutor’s Office for Economic Affairs and Corruption (WKStA).
Total damage: 17 billion
Only on March 22 did the WKStA officially announce that it had formed an investigative team consisting of several people: a team leader, but also senior prosecutors and internal economic experts. This team must investigate the numerous Signa bankruptcies with an almost unbelievable amount of damage of more than 17 billion euros.
The procedural complex of the Commerzialbank
A closer look shows that WKStA group leader Wolfgang Handler and his senior prosecutor Patricia Kaindl are not only involved in the Benko affair, but are also involved in tackling the Commerzialbank Mattersburg scandal.
The financial institution Burgenland was closed by the authorities in the summer of 2020 after serious malpractice became known. The WKStA now assumes “damage amounting to 600 million euros”. It was not until January 2024 that another complaint was filed on a partial aspect. However, investigators still have to conduct an intensive investigation into 35 suspects in the banking crash in Burgenland, including nine associations, for, among other things, serious commercial fraud, breach of trust, fraudulent Krida, balance sheet falsification and money laundering.
Do WKStA’s senior prosecutors involved in the Commerzialbank case have sufficient resources to fight their way through Benko’s Signa undergrowth?
“The Public Prosecution Service is the final phase”
René Rupprecht, spokesperson for the WKStA, says: “Yes.” A team has been formed that is well positioned together with Soko Signa. There is no senior prosecutor who only has to handle one case. He also refers to the legal system: “The Public Prosecution Service is the final step. We only deal with the most serious violations, criminal prosecution. The entire Signa complex must be handled by the authorities and the administrators.”
The explosive thing about the Signa Group case is of course that close confidants of Benko, such as Marcus ‘Signature-August’ Mühlberger or CFO Manuel Pirolt, still hold leadership positions at important Signa companies. And it is precisely their legal actions in the run-up to the bankruptcy tsunami that are at stake. These activities must be handled legally.
A side note: Benko’s lawyer Norbert Wess meets old acquaintances in the Signa case. He presented WKStA group leader Handler with the confession of Commerzialbank boss Martin Pucher in the summer of 2020.
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.
