• Austria's news in English

Ex-finance minister expected to be sued

The Local · 9 Jul 2014, 10:39

Published: 09 Jul 2014 10:39 GMT+02:00

Facebook Twitter Google+ reddit

According to the newspaper Der Standard ex-finance minister Karl-Heinz Grasser is among 18 people who are expected to be sued.

It is alleged that he embezzled funds in the course of privatizing 60,000 state-owned flats (run by the Buwog housing company) in 2003-04.

The flats were sold for about €961 million in Austria's biggest-ever privatization. At the time, Grasser was finance minister in a centre-right government.

About €9.6 million - one per cent  of the price - was paid in "commission" to the two lobbyists Walter Meischberger and Peter Hochegger.

This money was said to have been channelled via Cyprus to three accounts in Liechtenstein.  Part of it is suspected to have come back to Grasser himself.

Grasser is the most frequently-named person in various corruption inquiries. According to the newspaper Österreich Grasser is also expected to be sued because of tax fraud and avoidance.

If found guilty he potentially faces up to ten years in prison, in addition to fines that may amount to €20 million.

Story continues below…

Grasser denies any wrongdoing.


For more news from Austria, join us on Facebook and Twitter.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Radioactive uranium rocks on display in Austrian schools
Uraninite crystals. Photo: Rob Lavinsky, iRocks.com/Wikimedia

Education officials have carried out urgent checks in schools across the country after one of the stones on display in a classroom turned out to be radioactive.

Austrian churches slam far-right's 'God' slogan
Campaign poster for Norbert Hofer. Photo: Paul Gillingwater

Austrian church officials have denounced far-right presidential candidate Norbert Hofer for "instrumentalising" God in a new slogan.

'Scary clown' pushes 14-year-old off his bike in Salzburg
Generic photo: Graeme Maclean/Flick

A 14-year-old boy in Salzburg has been injured after being pushed off his bike by an individual dressed as a scary clown.

Police puzzled by random stabbing of teenager in Vienna
Photo: Paul Gillingwater

A 15-year-old boy who was stabbed near his home in the Vienna district of Liesing on Friday morning by a complete stranger has spoken to the police.

'Sensational' 300-year-old Madonna found in Burgenland
The head of the statue was found beside the body. Photo: ORF

A 300-year-old statue of the Virgin Mary has been found hidden in a chapel next to a Catholic church in Loretto, Burgenland.

Baumgartner 'failed to mention Red Bull' before jumping to Earth
Felix Baumgartner. Photo: Red Bull Stratos

Felix Baumgartner has been accused of cheating his Red Bull sponsors after he failed to mention the energy drink just before he jumped to Earth.

Verdict on swimming pool rape case overturned
The Theresienbad swimming pool in Vienna. Photo: Wikimedia

An Iraqi refugee who was jailed after claiming it was a sexual emergency when he raped a boy in a swimming pool has had the sentence overturned.

Vienna Comic Con promises to be 'bigger and more galactic'
Cosplay star Yaya Han. Copyright: Yaya Han/Bryan Humphrey

Comic Con returns to the Austrian capital on November 19th-20th at the Messe Wien.

Three refugees arrested on drugs charges
Cannabis plants. Photo: J. Patrick Bedell/Wikimedia

A gang of three Afghani drug dealers has been busted in Vienna.

Hungarian woman crushed by snowcat piste machine
Snowcat machine. Photo: Melensdad/Wikimedia

A young Hungarian woman has died after being crushed by a snowcat piste machine on the Dobratsch mountain in Carinthia.

12 brilliant German words you won't find in English
Sponsored Article
Last chance to vote absentee in the US elections
Five films which will change your mind about Austrian cinema
Those surprising Austrians!
100 years since the last emperor's death
Afghani family's new home in Austria
Der you learn Deutsch?
Delighted by the light
Beware these passport scams
Of course we skipped Oarsch
Foodies rejoice at the choice!
Travel & Tourism
10 years after her escape from captivity
Surviving the Brexit for British expats
Day 2 of the World Bodypainting Festival 2016
Is Islam hostile to Western society?
Bodypainting festival in southern Austria
Europe's ice cream capital
Best Austrian beauty spots
Travel & Tourism
Three days in Vienna as a tourist
How to make friends in Austria
jobs available