Enlarge image
The investigators are targeting real estate billionaire René Benko
Photo:
EB / People Picture
The investigations into the Austrian real estate investor and department store owner René Benko for alleged corruption have alarmed the German financial market authority Bafin.
After the offices of Benko's real estate company Signa in Vienna and Innsbruck were searched last week, the supervisors are said to have contacted the German banks and insurance companies that do business with Signa.
The allegations by the Austrian business and corruption prosecutor's office against Benko are serious: He is said to have bribed a former high-ranking Austrian tax official so that he could help him with an opaque tax savings model.
This is also said to be based on false valuations of real estate in Benko's books.
Admittedly, the inspectors see only a manageable proportion of unsecured loans, at least in the case of insurance companies, and therefore only little cause for concern.
The banks are the focus of the auditors.
A new assessment of the risks is still pending.
The institutes have financed Benko's projects, such as the Hamburg Elbtower, with billions.
The supervisors now want to get an up-to-date overview of how high the risk of loan defaults could be.
According to information from SPIEGEL, the European Central Bank (ECB) and the Austrian financial supervisory authority FMA are apparently also looking at the connections between the banks they supervise and Benko.
Should the billionaire be convicted in the end, it could have drastic consequences for his conglomerate.
One investor warns that he is the only one holding his complex company empire together.
The search message had already caused a stir on the financial markets.
A EUR 300 million bond from Signa Development Selection, which had already been under pressure, fell sharply again.
Sometimes the paper was barely worth 55 cents – just a little more than half of the issue price.
The ECB left an inquiry about the tests unanswered.
Benko said through his lawyer that the Bafin is obliged to be routinely informed about the largest business partners of banks and insurance companies.
Naturally, Signa also belongs to this group.
However, there are “currently no unscheduled or additional activities” by the authority.
In his environment, Benko is perceived as worried.
According to one business partner, things could "get tricky" for him.