COFAG money outstanding

Zmuegg: “Kogler and Brunner must go to court”

Finance and restructuring expert Gerald Zmuegg from the financial ombudsman team has been fighting for some time for the payment of promised COFAG funds to domestic companies. Many companies now fear bankruptcy due to the lack of payments, and a number of companies have already sued COFAG. For example, Fit Fabrik, whose Managing Director Michael Zrost is fighting for 1.6 million euros together with the financial ombudsman team. 

This has been promised for some time, but has still not been paid out. Zrost: "The situation is very stressful. We have been running after our money for almost two years now. The lockdowns have led to many people in the fitness industry quitting their jobs and we have lost 40 percent of our members. That means massive losses. Because when you open, the costs are immediately one hundred percent back up. But only 60 percent of the income is back. That's why we are dependent on the aid payments."

In the fitness industry, however, it takes months to years to increase revenue and attract new members, so as an entrepreneur you have to look for new liquidity: "Because the aid payments aren't coming in, I can't invest in marketing or advertising measures. That's very frustrating."

Finance Minister and Vice Chancellor in court?
Restructuring expert Gerald Zmuegg adds: "It is also a new experience for us that we have to take legal action against the state. I am somewhat shocked by yesterday's statements by Vice Chancellor Kogler and Finance Minister Brunner in the U Committee." Since August 2023, people have been waiting for Brunner and Kogler to reach an agreement and for an EU directive to be transposed into Austrian law. "Because that's where this payout fails. It will certainly be the case that both Kogler and Brunner will be confronted with these statements again by the judge in court at the latest. Because if no solution is found, then the lawsuits we have filed will have to be dealt with accordingly by the judge. And the simple fact is that a contract has been concluded. And if it now takes two years to implement it, I can no longer understand that."  

Watch the full interview in the video above!