Second day of questioning

Signa headquarters, moral watchdogs and former minister in focus

The second day of questioning in the Erwin Schrödinger Lokal is over.

(Bild: Parlamentsdirektion/Michael Buchner)

The relocation of the Signa headquarters, alleged "black moral watchdogs", audits of the Kufstein-Schwaz tax office and former Finance Minister Eduard Müller were the focus of the second day of questioning in the COFAG committee of inquiry. The FPÖ and SPÖ are calling for Müller's resignation. 

"The Tyrolean", as Wolfgang Peschorn, lawyer for the Republic, called him on the first day of the COFAG Committee of Inquiry, was also the center of attention on the second day of questioning at the Erwin Schrödinger Lokal - without being present himself. Benko's private jet once again caused a stir. It emerged from the questioning of civil servants that the taxpayer helped finance the plane in question to the tune of nine million euros, which caused criticism among most of the parliamentary groups.

However, the relocation of the Signa headquarters from Vienna to Innsbruck was the main topic at the beginning of the questioning. "We can only assume the reason for the hasty withdrawal from our point of view," said an official during the questioning - and explained. It was because a Signa company had been sold to Luxembourg, to which the "Goldenes Quartier" property also belonged.

Focus on the relocation of the Signa headquarters
This company was in turn sold for 141 million euros and without a profit mark-up and was consequently resold by the Luxembourg company just 14 days later for 195 million euros. There would therefore have been no taxable profit in Austria, but 54 million in Luxembourg. The official was of the opinion that the largest part of the profit, namely 50 million euros, had accrued in Austria and was therefore also taxable. However, following the relocation of the Signa headquarters to Innsbruck, the tax base there had been set at only 36 million euros.

The tax official did not want to sign the document and said that he had then been contacted by the 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 "can't choose what he wants" and pointed out possible abuse of office if the finance department complied. Müller, who is now head of the Financial Market Authority, replied that Benko had "done a lot for Austria". 

FMA boss "ready to resign" for FPÖ
Müller, who was thus "incriminated" by officials on the first and second day, is now also facing calls for his resignation. "The statements made by the respondent in the COFAG committee of inquiry make the resignation of the head of the Financial Market Authority, Eduard Müller, inevitable," says Hafenecker. The tax official responsible for large-scale audits had stated that an investigation had been initiated against him on the basis of false accusations by an "intervention force" set up in the ministry called the "Office for Internal Affairs" - set in motion by the "twins" in the Ministry of Finance, as the former Secretary General Thomas Schmid and the section head and later Minister Eduard Müller were referred to. "It is obviously an ÖVP moral police force in the Ministry of Finance, which also lacks any legal basis," says Hafenecker.

Hafenecker locates "black moral guardians"
Meanwhile, FPÖ parliamentary group leader Christian Hafenecker (FPÖ) spoke to an official about an investigation against him. The official explained that one of the two "twins" (i.e. ex-Öbag boss Thomas Schmid and ex-Finance Minister Eduard Müller) had sent out a kind of task force from the Bureau for Internal Affairs (BIA). Hafenecker identified a scandal and an "ÖVP moral police force in the Ministry of Finance".

Finance Minister is called upon
"Now that Schmid has brought himself down through his chat activities, Müller's time in responsible positions in the Republic has finally come to an end. He is no longer acceptable as head of the Financial Market Authority. I call on him to resign immediately and on Finance Minister Brunner to dismiss him immediately," said Hafenecker. In any case, Müller is obviously completely out of his depth in his position, especially as he did not see the Signa bankruptcy coming or looked the other way for party political reasons. The SPÖ has expressed its approval. Red party leader Kai Jan Krainer says: "Firstly, Müller should never have been allowed to become CEO of the FMA because he does not meet the legal requirements. Secondly, Müller should no longer be a member of the Board of Directors because he is a reputational risk for the Financial Market Authority". 

What else has to happen and become known about Müller before the ÖVP Finance Minister Brunner recalls him?

Kai Jan Krainer (SPÖ)

COFAG boss was questioned
Last but not least, the COFAG committee lived up to its name on Thursday. COFAG Managing Director Marc Schimpel was on hand to answer questions. The Managing Director was reluctant to comment on the Court of Auditors' strong criticism of COFAG. He pointed out that the company had been under "crazy pressure", had adhered to guidelines and that many things had had to be done quickly due to the pandemic. He also reported that the plan had been to dissolve the COVID-19 financing agency and that the Procurator Fiscal had been approached. 

The COFAG committee will not continue until April. The next committee on "red-blue abuse of power", which was set up solely by the ÖVP, will start on Wednesday.