Vienna, April 4, 2024 (TASR) – Austria’s Federal Criminal Police Office (BKA) has set up a special investigative commission to focus on the case of the collapsed real estate group Signa. This case is causing a stir in Austria and shaking confidence in politics and the economy.
Suspicions of fraud and concealment
The Ministry of the Interior stated that there are suspicions of particularly serious fraud in the case, which require thorough investigation. The core investigative team consists of ten experienced economic crime experts, but the team is expected to grow to 40 people.
Signa founder René Benko failed to appear before the parliamentary inquiry committee on Thursday, April 4. This was his first planned public appearance since the collapse of his real estate empire. The opposition, which pushed for the establishment of the committee, accuses him of concealing information and favoring super-rich Austrians with ties to the ruling ÖVP party.
Damage estimates range from 1 to 5 billion euros. Who will pay for it?
The collapse of the real estate giant Signa has shaken Austria and raised a wave of questions. The exact amount of damage is not yet known, but estimates range from 1 to 5 billion euros. The final amount will depend on the results of the ongoing investigation and audits, as well as on the value of Signa’s assets and the amount of creditors’ claims.
Signa’s collapse: Symbol of the collapse of the real estate market?
The Signa Group experienced rapid growth during the period of low interest rates. However, the war in Ukraine and the associated increase in interest rates, energy prices and construction materials hit the real estate market across Europe and Signa found itself in a difficult situation. The group owned a large number of commercial properties and department stores in Germany, Austria and Switzerland, but last year it had to file for protection from creditors.
The collapse of Signa raises questions about the stability of the real estate market and the responsibility of politicians. The investigation by the BKA and the parliamentary committee should provide answers to these questions and clarify whether there was fraud in the case.
Additional Information:
- BKA: Bundeskriminalamt (Federal Criminal Police Office)
- ÖVP: Österreichische Volkspartei (Austrian People’s Party)
- René Benko: Austrian real estate developer and investor
- Signa Holding GmbH: Austrian real estate company
