Magnus Brunner (ÖVP) wants to start liquidating the COVID-19 Financing Agency (COFAG) from June 30 and fully liquidate the aid agency by the end of December. “It is crucial that companies’ legal rights are preserved and that the financing already promised is disbursed smoothly,” the finance minister said on Thursday.
Last June, Brunner announced for the first time the dissolution of COFAG without a fixed end date.
U-Committee is coming
COFAG is a hot topic in our own country. The opposition parties have long criticized the management of the financing agency and the processing of the financing. At the initiative of the SPÖ and FPÖ, there is a separate COFAG-U committee in parliament this year, which is intended to shed light on financing from the Covid financing agency.
“Significant overfinancing potential”
The Court examined the aid organization from March 2020 to June 2021 and found “significant overfinancing potential” and criticized, among other things, the high costs for the specially created company. The auditors recommended the dissolution of COFAG in autumn 2022.
The gradual transfer of COFAG’s tasks to the public administration should now take place from June 30, and the tax authorities will take over the recoveries of the financing. Due to the Constitutional Court’s ruling on COFAG, the preconditions for processing must still be regulated by law, Brunner explains. However, there is already an agreement with the coalition partner.
Last autumn, the Constitutional Court revoked parts of COFAG’s legal basis with effect from the end of October 2024, meaning that aid can still flow until then.
About 15 billion euros have been paid out so far
According to its own information, the COVID-19 financing agency has processed 99 percent of more than 1.3 million applications from 660,000 applicants and distributed approximately 15 billion euros in economic aid. The Corona aid organization has promised to process all outstanding financing applications by the end of June, Brunner said. During the review of the economic support granted, COFAG has so far recovered more than EUR 100 million in almost 5,600 cases.
In June 2023, Brunner instructed the federal government’s wind-down management company (ABBAG) to develop a resolution concept for the Corona financing agency together with COFAG by the end of September 2023. The development of the resolution concept was delayed due to the VfGH ruling last autumn. The Covid relief measures for companies and the special provisions ended on June 30, 2023.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
