Investigation in Austria due to suspicion of embezzlement in Serbia

Austrian Financial Market Authority (FMA) initiated investigation against the Raiffeisen bank international (RBI) head, Herbert Stepic due to suspicions there was embezzlement in purchase of a real estate in Serbia totaling more than million euros, Vienna Magazine, Falter wrote.

The investigation was started because of one Fund in Lichtenstein used for activities related to real estate in Serbia with Hypo Alpe Adria bank loan.

- With respect to this case, Mr. Stepic does not have a comment – RBI spokesman Ingrid Kren Dic said for the Austrian newspaper agency APA.

Referring to banking secret, Hypo bank also refused to give a comment to these allegations.

The trigger to initiate FMA investigation, Falter claims, is, among other, an article of Vienna magazine, Profil from 2011 where there were writings about “obscurities in business in Serbia” and “the role of the RBI head, Stepic”.

According to that Profil writing, Stepic, together with a couple of other bankers, speculated with real estate bought in Serbia at very convenient prices with the Hypo bank money which funded this operation with 23 million euros.

Falter refers to FMA file, among which document of Hype bank 2006 is, registered as confidential report on credit dated March 24, 2011.

Stepic did not want to give an announcement for Falter but in his earlier announcement to Profil, he said that, accidentally, his name was related to the report on the loan and added that he was not familiar with the fund in Lichtenstein.

According to media, Cyprus company, Entusa Ltd has been performing suspicious operations with real estate in Belgrade.

Half of this company belongs to Serbian businessmen, close to political circles, among which ex politicians who are not named are, and the second half is owned by the two companies related to two Austrian bank managers.

Thus, behind Rogera Ltd, there is the name of the Raiffeisen invest head, Martin Schwedler, while behind the Lichtenstein –registered foundation, Restern, there is the name of Herbert Stepic, Falter claims referring to FMA report.

Entusa bought land occupying 145 heaters, near the Belgrade airport, at the Belgrade-Zagreb highway.

That activity was funded by Hypo bank loan, approved by former head of the bank, Wolfgang Kulterer, convicted in the first instance before the Austrian court.

Five years later, Entusa was neither able to pay interest rates nor to sell the land.

According to Falter, FMA is looking for an answer from Stepic to a number of questions, most of all, how Austrian-Serbian group of investors could buy state-owned land for 23 million euros although it was estimated to 65 million euros.

As magazine added, it is also questionable whether Hypo bank in favor of famous customers gave wrong estimation or the investor got benefits from the country.

Also, the question of why that project was carried out through the company on paper in Cyprus and Lichtenstein, as well as whether profit was hidden from tax institution in Austria, should be answered.