Head of Austrian state holdings group, stung by texts with Kurz, quits
08/06/2021 10:51
By Francois Murphy
VIENNA, June 8 (Reuters) - The head of Austrian state
holdings group OBAG, Thomas Schmid, stepped down on Tuesday as
prosecutors investigate whether Chancellor Sebastian Kurz
perjured himself in saying he was not involved in appointing
Schmid and OBAG's supervisory board.
Text message exchanges between Kurz and Schmid, a civil
servant loyal to Kurz's conservative party, were part of a
parliamentary commission's investigation into possible
corruption revealed in the so-called Ibiza sting video that
brought down Kurz's coalition with the far right in 2019.
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In the texts, widely reported in Austrian media, Kurz tells
Schmid before his appointment that he will get "everything you
want" and Schmid expresses his thanks and "love" to Kurz. At
best, the exchanges are embarrassing; at worst, they could help
lead to a criminal conviction for Kurz that would threaten his
job. urn:newsml:reuters.com:*:nL1N2MZ0LK
Kurz denies any wrongdoing and says he expects to be charged
but not convicted.
"After intensive consultations within the supervisory board,
the supervisory board has together with Mr Schmid come to the
conclusion that the immediate termination of Mr Thomas Schmid's
role represents a necessary step for OBAG," Austrian Holding AG
(OBAG) said in a statement.
OBAG had said in April that Schmid would not stay on beyond
the expiry of his term in March 2022.
The company manages assets including a 51% stake in utility
Verbund VERB.VI , 31.5% of oil company OMV OMVV.VI and 52.9%
of Austrian Post POST.VI .
OBAG Director Christine Catasta, who oversees investment
management, is taking over temporarily as chief executive.
Opposition parties seized on the resignation to attack Kurz,
whom they accuse of running a system of nepotistic appointments.
"The Kurz system is buckling further," Joerg Leichtfried of
the Social Democrats said in a statement, adding that Schmid's
departure was long overdue but why it happened now was unclear.
"The responsibility for this culture of arrogance and
overestimating oneself lies with Chancellor Kurz, who hoisted
Schmid into the job," he added.
(Editing by Gareth Jones)
((francois.murphy@thomsonreuters.com))