Accounting scandal

Group CEO: “Pay back any excessive bonuses”

The accounting scandal has recently caused a stir.

(Bild: Wenzel Markus)

The accounting scandal is costing voestalpine dearly! The Group is paying for the investigation into the case of incorrect bookings made over many years, which improved the results of a company. The overpaid taxes are also gone. CEO Herbert Eibensteiner promises to pay back any excessively high performance bonuses.

The entrance to the Design Center in Linz was reminiscent of an airport on Wednesday morning: six security gates were set up. Bags were checked, watches and cell phones had to be handed in before passing through the scanner.

Even the police were on site
The reason: the voestalpine Annual General Meeting, for which the steel company had ordered countless security staff and even alerted the police, fearing an action by climate activists. However, this did not materialize and the meeting with the shareholders was able to start without any delays.

It will only be possible to decide whether civil or criminal charges will be brought once the results of the investigation are available.

Herbert Eibensteiner, Vorstandschef der voestalpine

After the usual formalities regarding the procedure, the managers on the podium quickly got down to business. At exactly 10.22 a.m., CEO Herbert Eibensteiner took to the lectern to spend almost 17 minutes explaining the case surrounding the earnings-enhancing accounting errors at a company in the Metal Forming division, which had been uncovered in February but only became known in the annual report on June 5.

"This is not a matter that is critical or even detrimental to the Group," emphasized Supervisory Board Chairman Wolfgang Eder.

(Bild: Dostal Harald)

Concrete figures on the table for the first time
"In my opinion, the issue has cast voestalpine in the wrong light in the public eye. We are not like that," clarified Eibensteiner, who spoke firmly of an isolated case. For the first time, concrete figures were revealed: the incorrect postings relate to 12 years and amount to € 99.5 million.

The results to date do not give rise to any fundamental doubts about the internal control system.

Wolfgang Eder, Aufsichtsratschef der voestalpine

The investigation into the case is ongoing: €1.5 million is being spent on lawyers, consultants, auditors and forensic experts to investigate the matter. Have criminal charges already been filed? "We have appointed this firm of auditors and lawyers with the aim of actually being able to bring legal action against those responsible," announced Eibensteiner, who promised: "If it turns out that excessive bonuses were paid out to us on the Management Board due to the incorrect bookings, then we will pay them back."

Accounting audit office investigates the case
voestalpine is also in trouble because of the case: the Financial Market Authority is investigating whether information obligations have been breached, and the Austrian Financial Reporting Enforcement Panel is also investigating. One thing is already certain: the Group can no longer reclaim the overpaid taxes. They are time-barred. Damage: an amount in the mid single-digit millions.