Austria: What you need to know about the U-Committee on the Kurz affair

questions and answers
Showdown of a confidant: what you need to know about the sub-committee on the ÖVP affair in Austria

Thomas Schmid unpacked – because he wants to be a key witness

© Hans Punz / Picture Alliance

After Thomas Schmid unpacked against ex-Chancellor Sebastian Kurz in front of the Austrian public prosecutor’s office, he now also speaks in front of the U-Committee. Who is burdened by this and what that means for Austria. Questions and answers at a glance.

A good year after allegations of corruption against the then Chancellor Sebastian Kurz became public, Austria is again being shaken by a political earthquake. For a few weeks, the statements of the former Kurz confidant, ex-finance minister and former boss of ÖBAG (participation management of the Republic of Austria), Thomas Schmid, have caused a stir. In talks with the Economic and Corruption Public Prosecutor’s Office (WKStA), he unpacked against the ex-Chancellor and a number of party friends, high-ranking politicians and entrepreneurs who were involved in the advertising scandal. Schmid will now appear before the U-Committee on Thursday.

The day before, the SPÖ and FPÖ had rounded up the Austrian National Council for a special session. This advised on the latest allegations by Thomas Schmid. Chancellor Karl Nehammer also commented on this for the first time. He and his party, the Austrian People’s Party (ÖVP), vehemently defend themselves against the allegations. The party accuses Schmid of “prejudice” and doubts the truthfulness of his statements. What does that mean for Schmid and the Kurz process? Answers to the most important questions:

who testifies

On Thursday, November 3rd, the ex-ÖBAG boss Thomas Schmid will testify in the ÖVP corruption investigation committee. Schmid had previously declined an invitation from the committee. The Federal Administrative Court therefore imposed a fine of 6,000 euros. Only after Thomas Schmid had shared explosive information with the WKStA did he agree to the U-Committee.

Who is accused?

It is considered likely that Schmid will repeat his allegations before the Corruption Committee. Among other things The following people are currently incriminated by his confession before the WKStA:

  • Sebastian Kurz: In his statement, Schmid states that he supported the ex-Chancellor’s party with “resources from the Ministry of Finance”. Sebastian Kurz is also said to have known that the embellished surveys were financed with funds from the Ministry of Finance. Schmid also admits that he threatened the general secretary of the bishops’ conference with “the destruction of the economic existence” of the church at Kurz’s request. The reason: the church had criticized the turquoise-blue asylum policy.
  • Sophie Karmasin: The pollster and ex-politician is said to have made contact with the Fellner brothers, who picked up the embellished polls on Kurz and the ÖVP in their free newspaper. Karmasin is also said to have mediated Sabine Beinschab, after whom the method of embellished surveys (“Beinschab tool”) was named. Beinschab is said to have styled the surveys for Kurz and then presented them as an “independent expert”.
  • Wolfgang Sobotka: The current President of the National Council is said to have intervened in the case of a tax audit of a think tank and a foundation associated with the ÖVP in Lower Austria. According to Schmid, the tax audit should have been completed in the spirit of Sobotka. The President of the National Council rejects this as “denigration”.
  • Wolfgang and Helmut Fellner: The media makers are said to have picked up embellished surveys for Sebastian Kurz in their free newspaper “Austria”. According to Schmid, the brothers are said to have asked him to install a general secretary in the state holding ÖBAG who can access the advertising budgets of state-owned companies. According to Schmid, that never happened.
  • René Benko: The entrepreneur and real estate mogul is said to have bribed Schmid. Benko is said to have offered Schmid a well-paid job in the real estate group Signa Holding – plus bonuses. In return, Benko asked Schmid to support him in tax proceedings. Because of this explosive statement, Signa Holding in Innsbruck was searched.

The presumption of innocence applies to all accused.

Why did Thomas Schmid testify?

Thomas Schmid himself became a suspect through the chat logs with Sebastian Kurz and party friends that became public last year. He plays a key role in the Kurz cause because he mediated between those involved and thus promoted Kurz’s political career and the advancement of the ÖVP. If the allegations are true, the accused face several years in prison. According to media reports, ex-Chancellor Sebastian Kurz could be behind bars for ten years. Thomas Schmid would also be affected by a prison sentence.

However, his testimony before the WKStA could mitigate his sentence. Schmid could thus obtain leniency status. If witnesses make a significant contribution to a case being clarified, the court can in return reduce the sentence – provided that the person himself is actually in the dock.

What else stands in the way of Schmid’s statement?

The ÖVP. The WKStA had asked the U-Committee to question Schmid. The ÖVP parliamentary group has not wanted to agree to this so far. In order not to jeopardize the investigations, the Ministry of Justice turned to the Constitutional Court (VfGH). It regulates how the U-Committee can deal with the ongoing investigations. The Constitutional Court is to confirm to the Ministry of Justice that only investigation results taken on file are handed over to the U-Committee. Accordingly, Schmid should only be asked about certain topics on Thursday, such as the leg scraper tool, Kurz’s role in filling certain posts and the alleged false statement by Sebastian Kurz.

Now that the Ministry of Justice has gone before the Constitutional Court, Schmid must not be confronted with questions about which he has not already testified. Nothing really new can therefore be expected from the U-Committee. Austria’s Justice Minister Alma Zadic said in “Standard” that she was obliged to protect the ongoing investigations. “Until the constitutional court has decided, a questioning of MMag. Thomas Schmid in the investigative committee on those areas that could endanger the criminal investigations of the WKStA must therefore be omitted.”

What does the process mean for Austria’s government?

At the special session in the National Council, the SPÖ called on the green coalition partner to to end cooperation with the ÖVP. The Social Democrats have already announced that they will apply for new elections. Without exception, there is backing from all opposition parties. They had indicated that they wanted to join the application. Last year, however, it was considered more likely that the coalition would break up over the ÖVP affair than it is now.

Meanwhile, the right-wing FPÖ is threatening to file a motion of no vote against the coalition government. In addition, she has requested a constitutional amendment, according to which the President of the National Council can be voted out. According to the current legal situation, the President of the National Council cannot be voted out of office. For the motion to pass, the FPÖ needs a two-thirds majority in the council. But that won’t happen. The current President of the National Council, Wolfgang Sobotka, will continue to hold office for the time being – despite Schmid’s accusations.

Sources: “The Standard”, ORF.at, Plus24.at

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