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Karl-Heinz Grasser Files for Personal Bankruptcy
Former Austrian Finance Minister Karl-Heinz Grasser, recently convicted to four years in prison for his role in the Buwog corruption scandal, has filed for personal bankruptcy. This surprising development follows his March conviction by the Supreme Court (OGH), where he was ordered to pay €9.8 million in damages to the Austrian Republic.
The Buwog Scandal and its Aftermath
Grasser, the main defendant in the Buwog case—Austria's largest corruption trial—was found guilty of breach of trust and accepting gifts. The case centered around the controversial 2004 privatization of 60,000 federal apartments, where irregularities in the bidding process led to significant financial losses for the state. The involvement of his friends, former lobbyists Walter Meischberger and Peter Hochegger, who received millions in commissions, further fueled the scandal. This outcome leaves a significant mark on Austrian political history.
Grasser's Financial Situation and the Bankruptcy Proceedings
Grasser's lawyer, Manfred Ainedter, stated that the lengthy legal proceedings left Grasser without income while incurring substantial costs, forcing him to seek bankruptcy protection. He filed for debt settlement at the Kitzbühel district court. The Credit Protection Association of 1870 (KSV) confirmed the filing, while the Alpine Creditors Association (AKV) anticipates the appointment of an insolvency administrator due to the case's complexity.
Implications of the Bankruptcy
Austrian insolvency law has specific rules for liabilities stemming from deliberate unlawful acts. Even after a three-to-five-year garnishment period, these debts remain. This means Grasser's €9.8 million debt to the Republic might only be relieved through a payment agreement with the Financial Procurator's Office, according to AKV insolvency expert Cornelia Wesenauer. The court will now determine if Grasser meets the legal requirements for insolvency.
Looking Ahead
The Grasser bankruptcy filing is a significant development, adding another layer to the already complex Buwog scandal. The coming days and weeks will be crucial as the courts assess his application and determine the next steps in the process. The outcome will undoubtedly have major implications for Grasser's future and potentially influence future corruption investigations in Austria.
