The Italian police have issued a European arrest warrant against the Austrian entrepreneur René Benko. The 47-year-old now has to expect arrest after the mega-bankruptcy of his real estate and trading group Signa. The public prosecutor’s office in the northern Italian city of Trento justifies this with investigations into large-scale real estate speculation. Benko was questioned by police in Austria on Tuesday but remained at large.
According to the Innsbruck public prosecutor’s office, the Italian arrest warrant should not be executed in his home country. As justification, the authority pointed out that a European arrest warrant does not have to be implemented if it concerns an Austrian citizen against whom corresponding proceedings can also be conducted domestically. Benko’s lawyer made a similar statement. The situation would be different if the ex-billionaire went abroad.
Searches in more than 100 properties
According to the Italian judiciary, more than a hundred apartments, business premises and government offices were searched as part of the investigation, including the town hall in South Tyrol’s capital Bolzano. At least eight other suspects were placed under house arrest – including the South Tyrolean entrepreneur Heinz Peter Hager, a former close business partner of Benko, and the mayor of the municipality of Riva del Garda on Lake Garda, Cristina Santi. Hager is involved in many real estate projects in Bolzano.
According to the public prosecutor’s office, the allegations include the formation of a criminal organization, manipulation of tenders, corruption and fraud, “in connection with the issuance of invoices for transactions that were not actually carried out.”
Lawyer: Benko will “cooperate fully”
Benko’s lawyer Norbert Wess told the German Press Agency: “Mr. Benko will continue – as before – to cooperate fully with all national and international authorities and is confident that any allegations against him can be clarified as incorrect.”
The Austrian entrepreneur had built up a large portfolio with his Signa Group, which also included the department store groups KaDeWe and Galeria. As interest rates, energy prices and construction costs rose, the nested company structure collapsed. According to the insolvency administrator, the total claims against Benko add up to around 2.4 billion euros.
The investigations in Italy have been ongoing for several years. It is about the suspicion that companies offered gifts, favors and money to government employees in order to get public contracts. According to Italian media reports, several computers and smartphones were confiscated during the searches at the town hall in Bolzano.
Further investigations are ongoing
The Austrian is also being investigated for suspected fraud in connection with state Corona funds. It’s about aid money for the luxurious “Chalet N” in the ski resort of Lech am Arlberg. It is being investigated whether the Corona funds were used as economic support during the pandemic or misused for other purposes. According to the lawyer, the chalet is not a private residence. The Benko family always paid for their stays. “Seen in this light, the allegations are baseless and are therefore disputed.”
Investigations into suspected loan fraud and a suspected bribery attempt were previously known. The ex-billionaire is also suspected of having unlawfully taken away parts of his assets. Benko’s lawyer also denies these allegations. (dpa)
Note d. Editor: This post was updated on December 3rd at 4:49 p.m.