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Section 4. Corruption and Lack of Transparency in Government

The law provides criminal penalties for corruption by officials, and the government generally implemented the law effectively. Anticorruption laws and regulations extend to civil servants, public officials, governors, members of parliament, and employees or representatives of state-owned companies. The law also criminalizes corrupt practices by citizens outside the country. The penalty for bribery is up to 10 years in prison.

There were reports of government corruption during the year. The Ministry of Justice’s 2020 annual report disclosed that it had investigated 2,031 allegations of corruption in 2020, of which 1,594 were closed without prosecution, 249 resulted in convictions, and 93 resulted in acquittals. The convictions represent a 15 percent increase from 2019.

Corruption: On November 18, parliament voted to lift the parliamentary immunity of former chancellor Sebastian Kurz, at his request, so that an investigation against him by anticorruption prosecutors could continue. Kurz resigned as chancellor in October but at that time continued to serve as the People’s Party chairman and started serving as the party’s parliamentary floor leader. Kurz resigned in the wake of corruption investigations against him in connection with alleged abuse of office and alleged misuse of public funds for manipulated polling and favorable press coverage beginning in 2016. Kurz withdrew from politics completely in December and resigned as chairman of the People’s Party and as the party’s parliamentary floor leader.

On August 27, a Vienna court sentenced the former vice chancellor and former leader of the Freedom Party, Hans-Christian Strache, to a 15-month suspended prison term for trying to initiate legislation to benefit the owner of a private hospital who donated $14,000 to Strache’s party. Strache appealed the verdict.

During the year, prosecutors also continued investigations regarding both party-affiliated personnel appointments in the partly state-owned Casinos Austria company and the government holding company OeBAG. The investigations included a search of the finance minister’s house based on allegations he may have been involved in discussions about a political party donation by gambling company Novomatic in exchange for the government’s assistance regarding a tax matter in Italy. In June prosecutors initiated investigations against Kurz on perjury charges in connection with his June 2020 testimony before a parliamentary investigative committee regarding his possible involvement in the appointment of the CEO of the government holding company. The finance minister resigned all party positions and withdrew from politics in December.

Prosecutors also continued investigating allegations the former vice chancellor and former Freedom Party leader submitted private expenses of more than 500,000 euros ($575,000) for reimbursement to the party (the Freedom Party and other leading political parties receive some government funding).

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