Second day of the investigation – Signa headquarters, moral watchdog and ex-minister in the picture

“The Tyrolean”, as Wolfgang Peschorn, lawyer for the Republic, called him on the first day of the COFAG investigation committee, was also the center of attention on the second day of the investigation in the Erwin Schrödinger restaurant – without even being present to be. Benko’s private jet caused a stir again. As interviews with officials revealed, taxpayers co-financed the aircraft in question to the tune of nine million euros, sparking criticism from most political groups.

At the start of the investigation, the main topic was the move of Signa’s headquarters from Vienna to Innsbruck. “We can only guess at the reason for what we believe was a hasty withdrawal,” one official described and explained during the interview. It concerned the sale of a Signa company to Luxembourg, which also included the “Goldenes Quartier” building.

Move the Signa chair into focus
This company was therefore sold again for 141 million euros and without a profit mark-up and was resold just 14 days later by the Luxembourg company for 195 million euros. In Austria there would therefore be no taxable profit, but in Luxembourg there would be 54 million. The official believed that the majority of the profit, namely 50 million euros, had been accrued in Austria and was therefore taxable. However, after Signa’s headquarters moved to Innsbruck, the tax base there was set at just 36 million euros.

The tax official did not want to sign the file and said he was subsequently contacted by then Finance Minister Eduard Müller. He told Müller “that you don’t earn 54 million euros in Luxembourg and nothing in Austria.” He told Müller that Benko “cannot choose what he wants” and pointed out to him possible abuse of office if the finance department complied. Müller, who now heads the Financial Markets Supervisory Authority, responded that Benko “has done a lot for Austria.”

FPÖ FMA boss “ready to resign”
Müller, who was ‘burdened’ by officials on the first and second days, is now also facing calls to resign. “The statements of the respondent in the COFAG investigative committee make the resignation of the head of the financial markets regulator, Eduard Müller, inevitable,” Hafenecker said. The tax official responsible for the audits of major companies explained that he had been investigated on the basis of false accusations by an “intervention force” created in the ministry called “Office of Internal Affairs” – set up by the “twins” in the Ministry of Finance, as the former Secretary General Thomas Schmid and the section head and future minister Eduard Müller were called. “It is clearly an ÖVP morality police at the Ministry of Finance, which also has no legal basis whatsoever,” Hafenecker said.

Hafenecker locates “black moral guardians”
FPÖ faction leader Christian Hafenecker (FPÖ) spoke to an official about an investigation against him. The official explained that one of the two “twin brothers” (i.e. ex-Öbag boss Thomas Schmid and ex-Finance Minister Eduard Müller) had dispatched some kind of intervention force from the Internal Affairs Bureau (BIA). Hafenecker identified a scandal and an “ÖVP morality police in the Ministry of Finance”.

Minister of Finance is needed
“After Schmid overthrew himself through his chat activities, Müller’s time in positions of responsibility in the republic has finally come to an end. He is no longer sustainable as head of the Netherlands Authority for the Financial Markets. I call on him to resign immediately and for Finance Minister Brunner to be removed immediately,” Hafenecker said. Be that as it may, Müller was apparently completely overwhelmed by his office, mainly because he did not see Signa’s bankruptcy coming or looked the other way for party political reasons. The SPÖ approved this. Red parliamentary group leader Kai Jan Krainer says: “Firstly, Müller should never have become a board member of the FMA because he does not meet the legal requirements. Secondly, Müller will probably no longer be a board member for a long time, because he poses a reputational risk for the financial market regulator.”

COFAG boss was questioned
Last but not least, the COFAG committee lived up to its name on Thursday. COFAG director Marc Schimpel was available to answer questions. The Managing Director would only comment to a limited extent on the Court’s clear criticism of COFAG. He sometimes pointed out that they were under “crazy pressure”, had to adhere to guidelines and that a lot had to be done quickly due to the pandemic. He also reported that the intention was to dissolve the COVID-19 Finance Agency and that the Financial Procuratorate had been approached.

The COFAG committee will not continue until April. The next committee on ‘red-blue abuse of power’, founded exclusively by the ÖVP, starts on Wednesday.