Wien Holding scandal: millions in losses due to questionable investments!

Wien Holding scandal: millions in losses due to questionable investments!

In Vienna there are once again critical tones regarding the role of “Stolz auf Wien Beteiligungs GmbH” (SaW). The Court of Auditors has focused on the company for its opaque approach to supporting companies during the Corona crisis. Founded by Wien Holding and the Vienna Chamber of Commerce in 2020, the company's goal was actually to actively support companies affected by the pandemic. But the reality looks different. Several companies that were supported by the SaW were already classified as financially troubled before the pandemic profil.at reported.

A closer look shows that several target companies will be insolvent as early as 2023. The company is based in Garnisongasse in the 9th district, and the grievances raise questions as to whether the specified selection criteria were ever adhered to. As if that weren't enough, “SaW II Beteiligungs GmbH” is also in the same critical line of fire. Founded in March 2021 and with the same managing directors, SaW II is aimed at smaller companies that urgently need capital and offers appropriate loans with fixed interest rates.

Black numbers are just a pipe dream

Wien Holding only holds a small share of 15.89 percent in SaW II, while other shareholders are prominent business giants. But there are great concerns because in 2022 and 2023 SaW II had to write off over a million euros because many of the companies it supported were in difficulties. Of the 4.1 million euros of paid-in capital, only 2.7 million euros are now left. This means that SaW II's accumulated loss will rise to 1.445 million euros in 2023, a dramatic increase compared to 953,000 euros in 2022. In 2024, a further 260,000 euros were also written down. Incidentally, the Wiener Holding is not liable for any losses, which puts those responsible in a critical light.

But what awaits us in the economic future? According to the consulting firm EY, we are facing a high number of bankruptcies in 2025. Although the inflation rate appears to be easing, the stabilization of energy and material prices could be deceptive. As below ey.com As reported, companies may no longer be able to build up reserves after years of crises. The pressure on many companies could continue to grow, especially in the “Real Estate & Construction” sector.

Uncertain omens

The forecasts are anything but rosy. The economic conditions remain tense and economic forecasts are characterized by uncertainty. The IHS expects modest growth of just 0.7 percent. These conditions could lead to stagnating orders, and consumer behavior is also changing, which is particularly affecting the trade in consumer goods. Online retail puts additional pressure on traditional businesses, making adaptation and targeted innovation essential.

It seems as if the economic situation of companies in the coming months will depend on numerous factors, not least on the reactions to the existing challenges. The pressure to act will grow, and it remains to be seen which companies will turn the corner and which will ultimately have to succumb to the challenges.