MILAN (Reuters) – An Italian judge ordered the arrest of Austrian property tycoon Rene Benko and eight others as part of an investigation into alleged corruption of local politicians in the Trentino Alto-Adige mountain region, two sources with direct knowledge of the matter told Reuters on Tuesday.
The sources said prosecutors in the city of Trento had asked Austrian authorities to arrest Benko, whose property empire Signa toppled in a series of high-profile insolvencies.
Austrian media reported on Tuesday that the Italian arrest warrant would not be executed in Austria. According to the APA news agency, Benko was questioned by the Tyrolean State Criminal Police Office but remained at liberty.
Benko filed for insolvency himself at an Austrian court in March after Signa Holding had declared insolvency in November 2023.
In April, Austria’s anti-corruption prosecutor opened an investigation into Benko on suspicion of fraud.
“No European arrest warrant will be enforced against Mr. Benko,” his lawyer Norbert Wess told Reuters, adding that his client “will continue to fully cooperate with all national and international authorities, and is confident that any allegations against him will be shown to be factually incorrect”.
A statement by Trento’s public prosecutors alleged that a business group was controlling local politicians to promote its construction activities in the region known for the Dolomite mountains and its popular ski resorts.
“The entrepreneurs involved allegedly agreed to finance the election campaigns of public administrators and then obtained benefits, simplified procedures and concessions for real estate initiatives”, the statement said, without identifying anyone.
Eight other people, including a mayor, local officials and business people had been placed under house arrest, it said.
The statement did not give the names of those it said were under house arrest.
In addition to the arrests, Italy’s Carabinieri and Guardia di Finanza finance police carried out more than 100 searches in four Italian regions on Tuesday, the statement said, adding that a total of 77 people are under investigation.
The charges include criminal conspiracy, corruption, bid-rigging, illegal financing of political parties, fraud, disclosure of secrets and false invoices.
(Reporting by Emilio Parodi, additional reporting by Alexandra Schwarz-Goerlich in Vienna, editing by Gavin Jones and Susan Fenton)