Construction cartel must repay millions to Carinthia

Several construction companies must repay millions of euros to the public sector following an investigation by Austria’s Economic and Corruption Prosecutor’s Office, ORF reported Monday. Carinthia will initially receive 12 million euros, according to Kleine Zeitung.

The companies allegedly harmed federal states and municipalities through collusion. The case involves a total of several hundred million euros. Tax investigators found evidence of the cartel at a company in the Lavant Valley.

Investigators, prosecutors and the Federal Competition Authority subsequently uncovered illegal price-fixing agreements. Road and bridge construction projects were reportedly affected most heavily.

Carinthia is affected by at least 10 construction projects. Further payments could follow in addition to the 12 million euros in compensation, as the investigation is still ongoing.

Seven million euros of the money is to be invested this year in 17 construction projects, according to the office of Martin Gruber, the responsible provincial government official. The Carinthian government is due to decide on the plan at its meeting on Tuesday.