Accusations against Hypo Group in Slovenia
The Austrian bank is under investigation because of suspicious real estate and financial transactions.
The Slovenian subsidiary of the Carinthian Hypo Group is facing criminal investigations. The replacement of the board which took place last week is allegedly also directly connected with the investigation.
Investigations in the financial and real estate business in Slovenia have been already completed; evidence is to be secured now. According to the Slovenian judiciary, the issue is about "extremely complex and extensive matters." The Austrian authorities are also being cooperated with.
The charges which have not been clearly explained are denied by the Hypo Group. The early dismissal of the Board was, according to media reports, due to "financial machinations." Klagenfurt headquarters only said that "nothing is known about objections”.
The bank might also have difficulties with the new appointments to the Board, as neither Johannes Proksch nor Wolfgang Edelmüller are authorized to act in Slovenia. In addition, one of the directors has to master the Slovenian language. For this reason, the board has not been appointed legally yet. According to the Slovenian Bank Act, the National Bank can only take action after three months, which could ultimately lead to an extraordinary administration by the Slovenian National Bank.
The Hypo Group is already being heavily criticized by the Slovenian media. Trust in the bank has already been shaken by numerous scandals. Because of the silence maintained by central headquarters, nothing is known yet about what the leadership has done wrong. It is therefore not possible to simply move on to daily business.