Millions in damage – Vorarlberg hospital fraud: a question of control

by time news

2023-08-04 20:13:25

After millions of dollars in fraud involving Siemens and the Vorarlberg state hospitals were uncovered, the victims announced that they would subject their control systems to a thorough overhaul.

House searches and arrests in some of the largest Vorarlberg companies: Less than 48 hours after fraudulent activities were exposed, which, among other things, caused millions of dollars in damage to the state hospitals, those affected are anxiously waiting to see whether the matter will continue to grow – and the insight that the company’s internal control systems have apparently failed. On Friday morning, the supervisory board of the hospital operating company (KHBG) was summoned in a hurry to discuss how to proceed. Provincial Councilor Martina Rüscher (ÖVP) was also present, after all the company is a 100% subsidiary of the state of Vorarlberg. At the meeting, it quickly became clear that it was now a question of keeping the damage to the KHBG as low as possible: “The clear goal is to indemnify the KHBG completely, since this is tax money for the citizens. A possible assertion of claims against the company Siemens is also being legally examined,” explained the state councillor. The result of such an examination can be eagerly awaited. However, this does not adequately answer the question of responsibility, because an internal control at Siemens led to the detection of the fraud – while the controls of the KHBG apparently did not bring any suspicions to light for years. This is probably one of the reasons why an external agency is now in place been commissioned to review the internal control system. According to the state hospitals, no functional errors were found during the first – internal – check of the control system for construction matters. The KHBG works with SAP systems, among other things, and implements the four-eyes principle for both factual and mathematical checks. “The fact that all of this could be circumvented with fraudulent intent is evidence of a very high level of criminal energy,” explained KHBG Managing Director Gerald Fleisch. Bargehr already announced renewed review of the KHBG. In the meantime it has become known that the company Hirschmann Automotive in Rankweil has also fallen victim to the fraudulent activities. To date, the alleged perpetrators include two employees of the KHBG, a retired hospital employee, a Hirschmann employee and an employee of Siemens. Four of the five were remanded in custody on Friday afternoon. They are all suspected of having issued bogus bills and enriched themselves over the years.
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