Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Salzburg Probe Finds $1.8 Billion Hidden Funds, No Losses

Don't Miss Out —
Follow us on:

Jan. 16 (Bloomberg) -- Austria’s Salzburg province owns undisclosed investments worth 1.35 billion euros ($1.8 billion) that were accrued through bypassing the province’s government and hidden from auditors and supervisors.

The investments, which include funds, shares and bonds, come on top of interest rate swaps and other derivatives that had been known by the government and have a market value of 451 million euros, Salzburg’s Finance Chief David Brenner told regional lawmakers today. The investments were made with 1.7 billion euros of loans and the province’s net investment position is positive, according to Brenner, who presented a probe into the funds by auditors and investment analysts.

“They were made over years, hidden from all controlling bodies and eventually caused a political crisis and an understandable anger and confusion in the population,” Brenner said in a presentation broadcast via the Internet. Brenner last month announced he would resign next week following the presentation of the investigation.

Salzburg initially put the losses at 340 million euros when Brenner announced Dec. 6 that he fired a civil servant accused of having run up and hidden the investments. The probe into the province’s finances then found new and previously unknown investments made over more than a decade.

Salzburg, the region whose capital is the western Austrian town of the same name, is one of Austria’s nine provinces. It has a population of 534,000. Its official debt is 874 million euros, or about half the size of its investment portfolio.

To contact the reporter on this story: Boris Groendahl in Vienna at

To contact the editor responsible for this story: Frank Connelly at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.