Karl-Heinz Grasser voluntarily seeks personal bankruptcy protection
Rewritten Article:
Ex-Finance Minister Grasser Files for Bankruptcy Amidst Buwog Corruption Scandal
In a shocking turn of events, former Finance Minister Karl-Heinz Grasser (FPO/OVP) has petitioned for personal bankruptcy. On Wednesday, the Kreditschutzverband von 1870 (KSV) announced Grasser's bankruptcy application to the district court in Kitzbühel. This move comes after the Supreme Court (OGH) sentenced Grasser to four years in prison at the end of March, with him and his accomplice, Walter Meischberger, ordered to pay 9.8 million euros in damages to the Republic of Austria.
- Courtrooms, Not Cellblocks: Grasser and Meischberger's Imminent Imprisonment
The court is now assessing whether insolvency conditions are met. At this juncture, the KSV has not disclosed further details.
Grasser's Lawyer: No Alternative
According to Manfred Ainedter, Grasser's attorney, Grasser's financial strife stems from the lengthy court proceedings that have left him with no earnings and high expenses, leaving him no choice but to seek bankruptcy protection.
Grasser, the chief defendant in the infamous Buwog case, was found guilty of embezzlement and bribe-taking. This high-profile corruption trial, dating back to Austria's Second Republic, centered around the sale of 60,000 federal apartments to Immofinanz in 2004. CA Immo, the losing bidder, submitted a bid just 1 million euros less than Immofinanz, prompting allegations of foul play.
Upon further investigation, it was revealed that Grasser's associates—former FPÖ General Secretary Walter Meischberger and lobbyist Peter Hochegger—received veritable fortunes in commissions, totaling 9.6 million euros, implying that the privatization might have been fixed.
Contextualizing the Buwog Case
The Buwog case, among the largest corruption trials in Austria's Second Republic, involves Grasser, Meischberger, and others. Below, find key details surrounding the scandal:
Characters Involved:
- Karl-Heinz Grasser: The disgraced former Austrian Finance Minister, central to the case. Grasser was convicted of breach of trust and accepting bribes.
- Walter Meischberger: A former FPÖ General Secretary and lobbyist, implicated alongside Grasser.
- Peter Hochegger: A former lobbyist caught up in the controversy.
Case Overview:
- Dubious Privatization: The case centers on the privatization of 60,000 federal apartments sold to Immofinanz in 2004. CA Immo lost out by just 1 million euros.
- Corruption Whispers: It emerged that Meischberger and Hochegger, associates of Grasser, received commissions totaling 9.6 million euros from the deal, hinting at potential manipulation.
Judgement Pronouncements:
- Sentences:
- Grasser: Four years in prison.
- Meischberger: Three and a half years.
- Hochegger: Three years, with one year being non-probationary.
- Financial Restitutions: Grasser, Meischberger, and others facecollective damages of approximately 9.8 million euros to the Republic of Austria. Both Grasser and Meischberger, already grappling with substantial financial burdens, have taken drastic measures—Grasser resorting to bankruptcy, while Meischberger has already filed for bankruptcy [1][3][5].
Legal Proceedings and Outlook:
- Grasser and Meischberger are slated to start their prison sentences within a month [2][5].
- Grasser has sought bankruptcy protection, citing overwhelming legal costs notwithstanding substantial debts [1][3].
- Grasser's impending imprisonment and financial burdens lead him to seek bankruptcy protection, leaving a question mark over the duration of his incarceration.
- The Kreditschutzverband von 1870 is currently assessing whether Grasser's bankruptcy application meets insolvency conditions.
- The General-News and Crime-and-Justice sectors continue to closely follow the Buwog corruption scandal, now entering a phase marked by bankruptcy filings and imminent imprisonment sentences.
- In the Buwog case, the court-ordered restitutions totaling 9.8 million euros, along with lengthy legal proceedings and high expenses, have driven both Grasser and Meischberger to file for bankruptcy.
- Amidst allegations of a rigged privatization deal and bribe-taking, the Buwog case serves as a stark reminder of the intersection between finance, business, and crime-and-justice, with its far-reaching implications for the Republic of Austria.
