Linz swap deal row moves to next stage

A special supervisory committee held another meeting about the swap business in Linz, which has made high losses. They discussed a guide for the next meetings. The committee will continue to meet for the foreseeable future.

In 2007, the city of Linz concluded a form of a rate-interest bet in order to secure an expiring credit line of 195 million Swiss Francs. Due to the increase in value of the Swiss Francs, the city is facing a loss of 420 million Euros. An attempt at mediation in February was not successful.

The supervisory committee of the city made a long list of targets that need to be fulfilled, regardless of the civil case, which will start soon.

The programme contains eleven points. For example, further informants such as BAWAG employees will be invited, who were present in the initiation and conclusion of the swap.

The committee also wants to invite employees of the magistrate who had to deal with the swap, head of the ÖVP club Bernhard Baier stated. This had been blocked by the SPÖ.

Ursula Roschger (Green Party), who is the head of the supervisory committee, advocates the invitation of magistrate employees. However, informants are not obliged to be truthful to the committee and cannot be forced to make a statement.

The following questions will be assessed: How did the internal control of the financial committee and the administration work? How was the cooperation of the Councillor of Finance and the Financial Director, who are blaming each other? What did the predecessor swap of swap 4175 (which made high losses) look like?

Additionally, the committee is interested in the report of the Federal Audit Office about the swap, which will shortly arrive in Linz.

Bernhard Baier said that the supervisory committee will probably work until the end of the year. They will examine the case in detail.