Grasser before imprisonment: billions of bills for Austria threatens!

Grasser before imprisonment: billions of bills for Austria threatens!

Innsbruck, Österreich - ex-finance minister Karl-Heinz Grasser faces a crucial turning point in his legal career. According to Vol.at he has to start his prison in the Innsbruck prison at the latest after he was sentenced to four years in prison in March 2025. It is unclear whether Grasser is already in custody; His lawyers do not comment on this. This conviction is the result of comprehensive investigations in connection with the Buwog affair.

The BUWOG affair, which may comprise unfaithful, illegal agreements and commission payments as part of the privatization of 60,000 federal apartments, put the Austrian judicial system to the test. As from Wikipedia , Grasser was charged in several points, including abuse of office violence. The Supreme Court (OGH) reduced Graser's original prison sentence from eight years to four years, but emphasized the severity of the crimes that are considered unprecedented in Austria.

claim for damages against the Republic of Austria

The complexity of the case is tightened by the CA Immo lawsuit against the Republic of Austria, which aims at around 1.9 billion euros in damages. This lawsuit results from the controversial sale of the federal apartments, in which illegal agreements took place according to the OGH. Ca Immo had left empty-handed in the 2004 BUWOG sale, which can be traced back to the sales price of 594 euros per square meter, while individual sales had previously achieved 1,350 euros per square meter.

The damage that the Republic is said to have had could be up to one billion euros, as the Green politician Gabriela Moser argues. Two legal hurdles now stand in the way of the decision on the compensation. First the limitation period is checked; The Republic believes that the lawsuit was submitted too late, while CA Immo cites that the amount of damage was only clear after the criminal investigation was concluded. The second hurdle concerns state liability, because it remains unclear whether the state can be liable for actions that Grasser committed outside of his official duties.

the OGH and the upcoming decisions

In the coming weeks, the OGH will decide on the statute of limitations what could influence the legal landscape. A possible judgment could take months or even years. Currently avoid CA Immo and the financial power of public statements due to the sensitive legal situation.

The years of investigations that led to the Buwog affair began in 2009 more by chance in the course of investigations into the bankruptcy of Constantia Privatbank. The affair itself revealed serious irregularities, including commission payments that were covered by mailbox companies, and insider information about the award procedure. Such details illustrate the depth and severity of the allegations against Grasser, whose career as finance minister ended in one of the greatest corruption scandals in Austria.

whether Grasser has to serve his time in custody or whether he still has a prospect of freedom afterwards for his ongoing legal steps remains to be seen. For the Republic of Austria, this case is not only a legal challenge, but also a deep cut in the trust of the population in the political institutions.