Graser, imprisoned in Buwog scandal, files for bankruptcy

Karl-Heinz Gras files for personal bankruptcy

The former Austrian finance minister Karl-Heinz Grass, who recently was convicted of his role in the BUWOG corruption scandal for his role of four years, has filed a personal bankruptcy application. This surprising development follows his conviction in March by the Supreme Court (OGH), where he was supposed to pay for the Austrian Republic of 9.8 million euros.

The Buwog scandal and its consequences

Grasser, the main accused in the BUWOG case – Austria's largest corruption procedure – was found to be guilty for violation of trust and acceptance of gifts. The case focused on the controversial privatization of 60,000 federal apartments of 2004, in which irregularities in the tender procedure led to considerable financial losses for the state. The participation of his friends, the former lobbyist Walter Meischberger and Peter Hochegger, who received millions of commissions, continued to fuel the scandal. This result leaves a significant trace for Austrian political history.

Graser's financial situation and the bankruptcy proceedings

The lawyer of Grassers, Manfred Ainedter, said that the long legal proceedings corresponded to grass without income and at the same time caused considerable costs and forced him to apply for insolvency protection. He applied for debt comparison at the Kitzbühel district court. The Credit Protection Association from 1870 (KSV) confirmed the registration, while the Alpine Creditors Association (AKV) anticipates the appointment of an insolvency administrator due to the complexity of the case.

Implications of bankruptcy

The Austrian Insolvency Act has specific rules for liabilities that result from conscious illegal actions. Even after a garnishment period of three to five years, these debts remain. This means that Grasser's debt of 9.8 million euros compared to the Republic, according to AKV insolvency expert Cornelia Wesenauer, may only be facilitated by a payment agreement with the office of the Financial Procurator. The Court of Justice will now determine whether grass meets the legal requirements for bankruptcy.

Look ahead

The submission of grasser bankruptcy is a significant development and adds another layer to the already complex Buwog scandal. The coming days and weeks will be crucial if the courts rate its application and determine the next steps in the process. The result will undoubtedly have a significant impact on the future of grass and potentially influence future corruption investigations in Austria.