Eight convictions, six acquittals in Buwog’s grand corruption trial



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Not without a certain irony. On the day of the commemoration of Saint Barbara, of all things, who is also the patron saint of prisoners as well as miners, the verdict was handed down on Friday in the largest corruption process Austria has experienced in the postwar period.

And the words of Judge Marion Hohenecker at the Vienna Regional Criminal Court were harsh: eight defendants were sentenced in Buwog’s trial to several years in prison and six were acquitted (details below). All judgments in the first instance are not final.

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For Karl-Heinz Grasser and Walter Meischberger, the ruling also means that they have to pay the federal government their share of the commission for Buwog’s privatization. If the ruling becomes final, the federal government can demand its share of the commission directly from them. If Grasser and Meischberger were unable to pay the claim, the state could hold Karl Petrikovics and Georg Starzer harmless.

Eight convictions, six acquittals in Buwog's grand corruption trial

Judge Marion Hohenecker announces verdict

Image: APA

As Grasser stared at his table as the verdict was delivered and Judge Marion Hohenecker barely glanced at him, Meischberger picked up his smartphone, glanced at his attorney, left the courtroom and never returned. The other defendants crossed their arms in front or behind their backs and listened carefully to what Hohenecker said. When the verdict was announced, he only grew slightly louder and more restless in the gallery where the media representatives had taken their seats.

  • Video: Johannes Schwitzer-Fürnsinn (ORF) on the BUWOG judgment

Announcement without respite

The judge described the tipping point of the indictment, who revealed to the consortium around Immofinanz how much competitor CA Immo could pay for the Buwog and other federal apartments, as follows: “Only Grasser is in doubt as an informant.” Through his friend and godfather Meischberger, the track passed to Peter Hochegger, who received the Buwog commission of 9.6 million euros from an Immofinanz company.

Eight convictions, six acquittals in Buwog's grand corruption trial

Despite the partial confession, lobbyist Peter Hochegger received six years in prison.

Image: APA

As Hohenecker continued to speak almost breathlessly, the defenders put their heads together. The first reaction followed immediately: Grasser’s lawyer, Manfred Ainedter, had it announced that the guilty verdict against his client was “a flagrant error of judgment.” Also, Meischberger, who made it known through his lawyer, go before the European court of human rights.

In justifying the trial and the range of penalties, Hohenecker primarily referred to the commission in the millions. Had this been permissible, “full road coverage” would not have been necessary. The judge also considered Grasser’s version of the € 500,000 “mother-in-law’s money” as “absurd and refuted”: “Those who do business honestly don’t need accounts in Liechtenstein. Grasser, Meischberger, Hochegger and the other prisoners created an “infrastructure for concealment” and thus greatly damaged the Republic of Austria.

Eight convictions, six acquittals in Buwog's grand corruption trial

Walter Meischberger left the court while the trial was being delivered.

Image: APA

Criticisms of the duration of the process

Not only some trial observers, but also attorneys for the defendants were faced with the length of the trial during the main trial. Towards the end of his comments, Hohenecker got into this too. He explained that the unreasonable duration should lead to a noticeable reduction of the sentence, if the defendant is unable to do anything during that time. However, this is not the case in the Buwog procedure. The act was huge, the investigation had lasted seven years and there were no phases of prolonged official inactivity.

  • Video: ZIB head of internal affairs Hans Bürger on Grasser’s tenure as finance minister.

The verdict in detail

Karl-Heinz Grasser: The former finance minister was sentenced to eight years in prison. Grasser was convicted by the jury of embezzlement, falsification of evidence and acceptance of gifts by officials. The senate of lay judges considered it proven that only Grasser, as Walter Meischberger’s informant, could be considered for the offer of the losing CA Immo. The Senate found that Gasser’s statements that he had received money from his mother-in-law because she wanted to put his investment talents to the test were unreliable.

Walter Meischberger: The former FPÖ general secretary and Grasser confidant received a seven-year sentence as a Grasser collaborator. At Meischberger, bribery is in addition to the aforementioned charges. He was acquitted of the fraud charges surrounding the sale of his villa in Vienna-Döbling.

Peter Hochegger: The former lobbyist was sentenced to six years in prison as an additional sentence. Despite the partial confession, he was sentenced to a long prison term. In addition to infidelity, embezzlement and false evidence are attested.

Georg Starzer: The former director of the board of directors of the Raiffeisenlandesbank Oberösterreich was sentenced to three years in prison.

Karl Petrikovics: The former head of Immofinanz was sentenced to two years in prison, as were lawyer Georg Toifl, and Swiss asset manager Norbert Wicki to 20 months in prison.

Rudolf Fischer: In the Telekom / Valora case, the former Telekom board member was sentenced to one year in prison.

There were acquittals for the five defendants in the complex around Linz Terminal Tower and former Immofinanz manager Christian Thornton.

Numbers about the process

  • 168 days of negotiations took place at the Vienna Regional Court from the beginning of the trial
  • 1088 days They are between the first day of the trial on December 12, 2017 and yesterday’s verdict.
  • 15 accused, four main and eleven secondary defendants, had to answer before Judge Marion Hohenecker. Former RLB CEO Ludwig Scharinger died in January 2019, real estate agent Ernst Plech was declared unable to appear for health reasons during the process.
  • 825 pages includes the prosecution in the Buwog trial. 150 witnesses were questioned in the large jury courtroom of the Vienna Criminal Court. According to the indictment, the prosecution originally wanted to hear 166 witnesses.
  • 9.6 million euros Immofinanz paid a commission to lobbyist Peter Hochegger for the decisive tip on the amount of the offer. This money is said to have been indirectly diverted to three Liechtenstein accounts.
  • 500,000 euros were invested in the large courtroom of the jury of the Vienna Regional Court for the Buwog trial before the start of the trial.
  • 12 lay judges they were there at the beginning of the process. Meanwhile, their numbers have been greatly reduced. This February there were only five lay judges left. A court needs two lay judges to pass judgment.
  • 2 1/2 hours the verdict of Judge Marion Hohenecker lasted. At 10:37 am, eight defendants were found guilty, the verdict was delivered, and the sentence was followed. At 1:10 pm, Hohenecker closed the deal.

Article of

Martin roithner

Economy editor

Martin roithner

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