Grasser before imprisonment: There is a risk of billions in damage for Austria!

Grasser before imprisonment: There is a risk of billions in damage for Austria!

Former Finance Minister Karl-Heinz Grasser is facing a crucial turning point in his legal career. Loud vol.at he must begin his prison sentence in the Innsbruck prison by Monday at the latest after being sentenced to four years in prison in March 2025. It is unclear whether Grasser is already in custody; his lawyers have no comment. This conviction is the result of extensive investigations in connection with the BUWOG affair.

The BUWOG affair, which may involve breach of trust, illegal agreements and commission payments as part of the privatization of 60,000 federal apartments, put the Austrian justice system to the test. How out Wikipedia According to reports, Grasser was charged with several counts, including abuse of authority. The Supreme Court (OGH) reduced Graser's original prison sentence from eight years to four years, but emphasized the seriousness of the crimes, which are considered unprecedented in Austria.

Claim for damages against the Republic of Austria

The complexity of the case is exacerbated by CA Immo's lawsuit against the Republic of Austria, which seeks around 1.9 billion euros in damages. This lawsuit results from the controversial sale of federal housing, in which, according to the Supreme Court, illegal agreements took place. CA Immo came away empty-handed when it sold BUWOG in 2004, which can be attributed to the selling price at the time 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 suffered could amount to up to a billion euros, as Green Party politician Gabriela Moser argues. Two legal hurdles now stand in the way of the decision on compensation. First, the question of limitation is examined; the Republic believes that the lawsuit was filed too late, while CA Immo argues that the amount of damage was only clear after the criminal investigation was completed. 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 Supreme Court and the upcoming decisions

In the coming weeks, the Supreme Court will decide on the issue of the statute of limitations, which could have a decisive impact on the legal landscape. A possible verdict could take months or even years. Both CA Immo and the Finanzprokurator are currently avoiding public statements due to the sensitive legal situation.

The years-long investigation that led to the BUWOG affair began somewhat by chance in 2009 during investigations into the bankruptcy of Constantia Privatbank. The affair itself revealed serious irregularities, including commission payments that were concealed through shell companies, as well as insider information about the procurement process. Such details illustrate the depth and seriousness of the allegations against Grasser, whose career as finance minister ended in one of Austria's biggest corruption scandals.

It remains to be seen whether Grasser will now have to serve his time in prison or whether he still has a chance of freedom following his ongoing legal action. For the Republic of Austria, this case not only represents a legal challenge, but also a deep blow to the population's trust in political institutions.