Austrian prosecutors have confirmed an investigation into former Chancellor Alfred Gusenbauer on suspicion of breach of trust. The probe relates to his time as a senior executive at the now-collapsed property group Signa, whose insolvency filings in late 2023 marked the biggest bankruptcy in Austria’s history. Signa was a prominent property developer, controlling luxury assets such as five-star hotels in Venice and Vienna, the Chrysler Building in New York, and high-end department store chains like Selfridges in Britain. Its collapse has impacted a wide array of investors, including blue-chip companies in Germany and Switzerland.
The Central Prosecutors’ Office for Economic Crimes and Corruption (WKStA) named Gusenbauer as the latest suspect in a sprawling investigation. He is alleged to have abused his position as chairman of the supervisory board of both Signa Development Selection AG and Signa Prime Selection AG during October and November 2022. This alleged misconduct involved ordering an “unjustified” advance payment from a profit-sharing agreement to another supervisory board member at each company, resulting in total losses of €10 million ($11.8 million) for the two entities. The WKStA stated these payments were illegal as they lacked the required approval from the entire board. Gusenbauer, who served as Chancellor from 2007 to 2008, had previously denied wrongdoing but could not be reached for comment.
The broader investigation into Signa’s downfall encompasses suspected crimes including fraud and breach of trust, involving over a dozen individuals. Authorities have conducted raids and seized documents and data storage devices at various locations across Vienna and its surrounds. The total estimated damage caused by all crimes under investigation related to Signa’s collapse has now surged to over €1.5 billion. While only two criminal cases linked to the collapse have reached court, Signa founder Rene Benko was a defendant in both, convicted of insolvency-related fraud, and is currently appealing those rulings.
