After the accounting scandal

voest

In February 2024, voestalpine uncovered 12 years of balance sheet fraud during an internal audit.

(Bild: voestalpine)

Lawyers, consultants, auditors and forensic experts worked on the case; 48,000 emails were examined; 45 people were interviewed - voestalpine invested a lot of time and money in clearing up the accounting scandal at one of the steel giant's companies. One year on, however, a great deal of patience is still required in the case - whether in terms of tax repayments or legal action. 

In February 2024, voestalpine uncovered 12 years of accounting fraud at a German company in the Metal Forming Division during an internal audit and immediately began investigating the case. In June, the case surrounding the incorrect postings amounting to EUR 99.5 million came to light during the presentation of the figures for 2023/24, causing a great deal of excitement. The accounting consequences had already been corrected retrospectively.

How is it possible that the figures have been embellished for so many years and nobody noticed? To answer this question, it was later pointed out that the people involved knew the control systems well and that one person had extensive authorization to override them.

In its annual report for 2023/24, voestalpine referred to the case, which still concerns the steel giant today.

(Bild: Krone KREATIV/Screenshot)

To investigate the case, 48,000 emails were reviewed and 45 interviews were conducted with relevant people, revealed CEO Herbert Eibensteiner. Eibensteiner himself paid back 100,000 euros in bonuses on a voluntary basis, as did former CEO Wolfgang Eder and another board member. A recalculation of target agreements had revealed that they had received too much in bonuses.

Public prosecutor's office in Austria is investigating
What are the consequences for the people allegedly responsible for the years of incorrect bookings? The responsible public prosecutor's office in Germany has not continued the proceedings due to the statute of limitations. "The Austrian public prosecutor's office is investigating, the proceedings are ongoing," Eibensteiner revealed a few days ago. He also said: "We are also planning to take civil action against the managing directors of the German company at the time."

Taxes amounting to 17 million euros to be reclaimed
When it comes to overpaid taxes, patience is required. After all, voestalpine wants to get EUR 17 million back from the tax office; the corrected and audited tax returns have been submitted. "The authorities now have to process and review this. It won't be resolved overnight and will certainly take a few more months," says CFO Gerald Mayer. Postscript: "We remain convinced that we will get it back."