Buwog-Causa: Grasser convicted-21 years of turmoil end!

Buwog-Causa: Grasser convicted-21 years of turmoil end!

Linz, Österreich - On March 25, 2025, Karl-Heinz Grasser was sentenced to four years in prison. This judgment is the end of the so-called Buwog-Causa, which extended over a period of 21 years. The case that the Austrian public employed for years was decided by a five-member OGH judge's senate, chaired by Senate President Christa Hetlinger. It dealt with the controversial sale of around 60,000 federal apartments for 961 million euros to a consortium that was closely associated with immofinance

The inferior bidder, CA Immo, had only offered 1 million euros less for the apartments. A central element of the negotiation was suspected that privatization may have been manipulated. Grasser’s former friends, Walter Meischberger and Peter Hochegger, received a commission from the deal over 9.6 million euros. The high commission payments of 200,000 euros for the settlement of the tax authorities in the Linz Terminal Tower were also discussed in the course of the procedure. In addition, smaller charges were found in the procedure in connection with the Telekom affair.

corruption in the real estate sector

The Buwog-Causa throws a bright light on corruption within the real estate industry. All too often, the boundaries between legal and illegal activities blur. Christian Kurz, partner and head of the Forensic Services at PWC, emphasizes that there are various opportunities for criminal actions in the industry, such as undeclared work on construction or complex transactions with high sums. These risks can not only endanger the integrity of companies, but also impair their reputation and economic success.

The developments of the Buwog-Causa underline the need for a strong compliance and anti-corruption management. Such measures are crucial to ensure the trust of investors and business partners. This also corresponds to the central theme of anti-corruption in the European ESG guidelines. Ethical behavior of corporate management not only affects governance, but can also be seen as an indicator of the financial health of a company.

A look into the future

The Buwog-Causa and its extensive consequences have raised awareness of corruption in the real estate industry. Unethical behavior could not affect real estate evaluation directly, but could significantly deter the financing conditions. The decision for more transparency and integrity in the industry is not only a legal, but also a moral obligation that must be taken seriously in the future.