"Monopoly worth billions"

Greens settle accounts with the Benko system

Group leader Nina Tomaselli

(Bild: APA/HERBERT PFARRHOFER)

On Monday, the Greens presented their parliamentary group report on the parliamentary COFAG committee of inquiry, focusing on the Signa bankruptcy and the "billion-dollar monopoly" of failed entrepreneur Rene Benko, as parliamentary group leader Nina Tomaselli explained. Tomaselli also criticized the coalition partner ÖVP. However, they were prepared to accept the consequences.

According to Tomaselli, they wanted to find out how this bankruptcy could happen, but also what could be done better by politicians and the administration in the future. She identified four factors that had contributed to Benko "becoming a billionaire with castles in the air" until the entire structure ultimately collapsed.

Signa's "billion-dollar monopoly"
The Green Party described Signa's business model as a "billion-dollar monopoly" that had exploited the possibilities of international accounting for the revaluation of real estate to excess. This had worked as long as interest rates were low and the overall forecast for the real estate market was rising sharply. Not only investors were harmed, but also German and Austrian taxpayers as well as numerous small suppliers according to the questionable motto "privatize profits, socialize losses".

Secondly, some had too often looked the other way, while others had willingly played along. Tomaselli specifically mentioned former chancellors Alfred Gusenbauer (SPÖ) and Sebastian Kurz (ÖVP). The third factor she mentioned was the banks and their lending practices, and the fourth was the glitz and glamor as part of the business model, with which politicians had been lulled into a false sense of security, even if individuals - the Greens refer to tax officials and journalists, or include themselves among them - had warned early on.

Ideas for improvements, criticism of Brunner
In terms of concrete suggestions for improvement, the Greens mention measures to prevent asset outflows into the "foundation paradise", an end to balance sheet hide-and-seek games and sufficient resources for the financial administration. Tomaselli also took aim at Finance Minister Magnus Brunner (ÖVP). He had to answer how high the damage to the Republic actually was, how high the "tax bill" of Benko's Signa was and what was being done to protect taxpayers. "Unfortunately, the ÖVP is still finding it difficult to stand on the toes of those who put themselves above the rules," she said, criticizing the coalition partner's reluctance to take legal action.

ÖVP counters
The Ministry of Finance, led by Magnus Brunner (ÖVP), took a different view: "Of course" lessons would be learned from the case, it said in a written statement. Reference was made to the group database announced in February, which is intended to provide a better overview of corporate networks in future. From the perspective of the black finance department, the justice department headed by the Greens Alma Zadić should also take action and modernize the company register to make connections easier to see and understand.