Austrian ex-finance minister gets 8 years in jail for corruption
08 Dec 2020

A Vienna court on Friday sentenced a flamboyant, jet-setting former Austrian finance minister to eight years in prison in the country’s biggest corruption trial since World War II.

Karl-Heinz Grasser was found guilty of abuse of power and involvement in kickbacks totalling 9.6 million euros ($11.7 million) over the sale of state-owned apartments.

During the trial, a co-defendant — who was also best man at Grasser’s wedding — admitted passing on insider information enabling a consortium to buy 60,000 government-owned flats for 961 million euros, one million euros more than a rival bidder.

Just three years later, the consortium valued the apartments at about double the price.

Grasser, who as finance minister had decided to sell the flats and knew of the bids, and his co-defendants received kickbacks totalling 9.6 million euros.

“Only Grasser could have passed on information” to the winning consortium, judge Marion Hohenecker said.

She rejected a claim by a co-defendant that the relevant information had come from Joerg Haider, the controversial former head of the far-right Freedom Party who died in 2008 and who had himself faced multiple corruption allegations.

– ‘Very far-fetched’ –

During his time in office, Grasser, now 51, frequently graced the tabloids with his wife, the heir to the Swarovski crystal empire.

At the time the one-time Haider protege was seen as a political star with a possible future as chancellor.

Heinz Mayr, former head of the law faculty at Vienna University who has followed the trial, said the defendants’ attempts to explain the events surrounding the deal at times seemed “very far-fetched”.

“There were a lot of inconsistencies that could not be explained,” he told AFP.

Read more at AFP via France 24

RiskScreen: Eliminating Financial Crime with Smart Technology

Count this content towards your CPD minutes, by signing up to our CPD Wallet

FREE CPD Wallet