The accounting scandal is costing voestalpine dearly! The group is paying for the settlement of the case concerning incorrect bookings that have been made over the years and that have improved the company’s results. The overpaid taxes have also disappeared. CEO Herbert Eibensteiner promises to repay any excessive success bonuses.
The entrance to the Design Center in Linz on Wednesday morning was reminiscent of an airport: six security gates had been set up. Bags were checked, watches and mobile phones had to be handed in before they went through the scanner.
Even the police were on site
Reason: The general meeting of voestalpine, for which the steel company had ordered numerous security personnel and even warned the police because they feared an action by climate activists. However, this did not happen, so that the meeting with the shareholders could start without delay.
After the usual formalities of the process, the managers on stage quickly got down to business. At 10:22 sharp, CEO Herbert Eibensteiner went to the speaker’s desk and then spent nearly 17 minutes explaining the case surrounding the profit-boosting misbookings at a company in the Metal Forming Division, which had come to light in February but were not released until June 5 in the annual report.
Concrete figures on the table for the first time
“In my opinion, the subject of voestalpine has been put in a bad light by the general public. “That’s not who we are,” Eibensteiner clarified, clearly speaking of an isolated case. For the first time, very concrete figures were put on the table: The incorrect bookings cover 12 years and the amount is €99.5 million.
The case is pending: 1.5 million euros are being invested in lawyers, consultants, auditors and forensic experts who are working on the case. Has a criminal complaint been filed yet? “We set up this accounting and law firm with the aim of actually being able to prosecute those responsible,” said Eibensteiner, who promised: “If it turns out that excessive bonuses were paid to us in the board because of the incorrect bookings, then we will pay them back.”
The accounting firm for bookkeeping is investigating the matter
Voestalpine is also in trouble because of the case: the financial market supervisor is checking whether information obligations have been violated, and the Austrian Accounting Testing Center is also investigating. It is already clear: the group can no longer get back the taxes it paid too much during that time. They are outdated. Damage: an amount of one million with an average single figure.
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.
