Trial for illicit money

Telekom Austria: Ex-lobbyist Hochegger sentenced

According to the public prosecutor's office, the damages amount to around 2.46 million euros.

(Bild: Krone KREATIV/GEORG HOCHMUTH)

The trial at the Vienna Regional Court for Criminal Matters concerning Telekom Austria's so-called "liquidity reserves" - i.e. black money - developed faster than expected. On Thursday, ex-lobbyist Peter Hochegger was found guilty of tax evasion; the verdict is not yet final.

The trial concerning Telekom Austria's illicit funds at the Vienna Regional Court for Criminal Matters came to an end faster than expected. The evidentiary proceedings against former Telekom Austria board member Rudolf Fischer and ex-lobbyist Peter Hochegger for tax evasion were concluded on Thursday afternoon.

Former lobbyist Hochegger was found guilty of tax evasion. Ex-Telekom Austria board member Fischer was acquitted. The verdict is not yet final.

Fine of one million euros
A panel of lay judges sentenced the now 75-year-old former lobbyist Hochegger to a fine of one million euros or - in the event of irrecoverability - to ten months' substitute imprisonment. 

The co-defendant, former Telekom Austria board member Rudolf Fischer, on the other hand, was acquitted in full. The court followed the argumentation of Fischer's defense lawyer Otto Dietrich that the incriminated transactions did not fall within his area of responsibility, but were the task of the CFO.

We cannot clarify to what extent you were involved in the individual business areas covered by the indictment.

Der vorsitzende Richter Mark Tuttinger gegenüber dem Freispruch von Ex-Telekom-Austria Vorstand Rudolf Fischer

"We cannot clarify the extent to which you were involved in the individual business areas covered by the indictment," the presiding judge Mark Tuttinger stated. From a "realistic point of view", it can be assumed "that you did not have the time and expertise to look at the tax balance sheet", Tuttinger conceded to Fischer. As a telecoms manager, Fischer was responsible for the technology and operations division and the fixed network division.

The indictment relates to events that took place 15 to 20 years ago. At that time, Telekom Austria held millions in funds off-book and passed them on to Hochegger's company Valora.

According to Hochegger himself, he received one million euros a year from 2005 to 2008. These funds were used for illegal party financing - such as a donation of 960,000 euros for a BZÖ election campaign - and off-book payments in the interests of Telekom. The cover-up was carried out by means of bogus invoices from Valora for services not rendered.

Ex-Telekom Austria board member Rudolf Fischer was acquitted.

(Bild: APA/HELMUT FOHRINGER)

Damages amount to 2.46 million euros
The public prosecutor's office accuses Fischer and Hochegger of being responsible for the booking of these bogus invoices. Unlawful input tax deductions and operating expenses are said to have resulted in a deliberate reduction in turnover tax, corporation tax and capital gains tax amounting to over 2.46 million euros.

While Fischer pleaded "not guilty" at the start of the trial, Hochegger largely confessed. He partially exonerated Fischer by stating that his contacts had been the former Telekom Austria Head of Controlling Gernot Schieszler and two now deceased board members.

"Had no awareness of the problem"
"It is possible that I signed the tax returns," Hochegger admitted on the first day of the trial. At the time, he basically "had no awareness of the problem". At the time, Valora was a kind of "branch office" of Telekom Austria and "formulated offers and wrote invoices on demand".

The million he was given each year for this purpose was "poured into orders, and then you are informed throughout the year and I did the processing at Telekom's request", he said, describing the system of concealment. His contacts, however, were the then Telekom Austria Head of Controlling and two former members of the Management Board who have since died, and not Fischer.

The decisions of the Senate are not legally binding. After consulting with his defense lawyer Leonhard Kregcjk, Hochegger asked for time to reflect, while public prosecutor Bernhard Löw made no statement for the time being.