Because of Signa loans

State Court of Audit takes on Hypobank

The controversial loans granted by the Vorarlberg bank to Benko's Signa Group are now to be closely scrutinized. However, Brigitte Eggler-Bargehr, Director of the State Court of Audit, does not expect the results of the audit any time soon. 

The collapse of Rene Benko's house of cards is now also occupying the Vorarlberg State Court of Audit. Since July, the banking experts of the audit institution have been digging through the papers of Hypo Landesbank. As is well known, the bank granted several loans to Benko's Signa Group - and now has to reckon with high defaults. While those responsible at the bank itself are talking about losses of probably around 75 million euros, the opposition in particular is expecting a default amount of over 130 million euros.

How high was the risk?
The Director of the State Court of Auditors (LRH), Brigitte Eggler-Bargehr, confirmed the audit on Friday. Due to the extensive material, however, she does not expect the investigation to be completed before December. Back in March, the state parliament parties submitted a request to the Court of Audit to review "the transactions of Hypo Vorarlberg Bank AG from 2020 onwards that are considered high-risk, in particular the investments and loans granted to Signa Holding, Signa Privatstiftung and all subsidiaries and shareholdings".

Supervisory Board to be investigated
The LRH will take a very close look at Hypo's supervisory bodies. It will examine whether the Supervisory Board has actually performed its duties, and the reporting obligations between the departments and the internal early warning system will also be scrutinized.