Grasser sentenced to four years in prison: the BUWOG judgment in focus!

Grasser sentenced to four years in prison: the BUWOG judgment in focus!

Österreich - On March 25, 2025, ex-finance minister Karl-Heinz Grasser was sentenced to four years in prison. A judgment that puts the legal disputes around the so-called Buwog affair again in the spotlight. Grasser had originally been sentenced to eight years in prison in the first instance, but the Supreme Court opened parts of the judgment and reduced the punishment. The process was about the sale of 60,000 federal apartments in Austria in 2004, in which Grasser, Walter Meischberger and Peter Hochegger were involved in serious allegations, including bribery and abuse of office. The financial claims resulting from the procedure amount to 16.4 million euros that still stand open and continue to leave the legal consequences of the case.

The Buwog affair and its effects on Austrian politics are profound. The deal in which the apartments were sold as a total package led to the Republic of Austria missed up to one billion euros, Gabriela Moser said from the Greens. The events became public for the first time in 2009 when an investigation into the bankruptcy of Constantia Privatbank brought a striking commission payment to the lobbyists. Experts and examiners hailed criticism on the sales price of 594 euros per square meter, while up to 1,350 euros were achieved in retail sales. This underlines the economic questionability of the entire transaction. Wikipedia informed .

corruption in Austria

The Buwog affair is only part of a major problem: the corruption perception index 2024 shows that Austria continues to slip in a global comparison. With a decline in 25th place and an assessment of 67 out of 100 points, Austria reaches the worst placement of its history. The index is created by Transparency International and illustrates that political scandals and the influence on independent media are essential reasons for this negative development. In addition, it is pointed out to ensure the independence of the public prosecutor's office and take transparency measures.

The continuing legal disputes and the sunken corruption perception index places the Austrian government in force to act against corruption. Transparency Austria has already demanded that the upcoming government introduce an independent right to issue instructions for public prosecutors in order to secure media independence and to strengthen the protection.