Control office criticizes expense account of Graz top politicians

Graz has imposed a temporary budget freeze due to liquidity concerns, according to officials. The city’s finance mayor, Manfred Eber of the KPÖ, confirmed reports from local media that the measure was taken amid a sudden increase in financial strain. The new administration, which took office last week after elections on June 28, announced that processing new funding applications and orders would be temporarily restricted. This follows a broader effort to stabilize finances, with Eber stating that the move was necessary due to higher-than-expected payouts under the state's mandatory disability law, amounting to over 30 million euros. Two-thirds of this sum will be reimbursed by the federal government in the coming months. A preliminary report from the Graz Control Office, obtained by the newspaper Profil, highlights “problematic disbursements.” It suggests that senior politicians and leaders of city council parties have allegedly wasted tax money, financially supported their own organizations, and poorly documented their expenses. However, no specific names were mentioned in the report. The city has suspended the processing of new grants while ongoing subsidies and funding remain unaffected. Until September 10, there is a general order restriction. After that date, orders related to statutory tasks of the city and essential operational costs will be reviewed by the accounting department in coordination with the finance directorate. If these guidelines are not followed, such expenditures will be rejected. City officials have acknowledged some of the spending. Health and Integration Mayor Robert Krotzer (KPÖ) stated he purchased 140 Advent calendars as gifts for municipal staff. Meanwhile, ÖVP club leader Anna Hopper acquired 40 coffee machines for city employees. These purchases, however, appear minor compared to the larger financial issues facing the city. On September 11, the KPÖ-Green-led city government plans to discuss further steps regarding new funding requests and subsidies for the remainder of the year. Eber explained that the budget freeze was triggered by an unexpected surge in payments linked to the state’s disability law. This situation had been anticipated in earlier months, with signs of increasing financial pressure becoming evident in the city’s liquidity planning for 2026. Similar temporary measures were already in place earlier this year to address a “short-term liquidity peak.” Prior to the recent election, the city administration had publicly warned that at least 65 million euros needed to be cut from annual investments, reducing the investment volume from 300 to 150 million euros. Eber noted that the strategic report clearly outlined the need for consolidation measures, and initial concrete steps will be introduced to the city council in September. Opposition parties, including the ÖVP, FPÖ, and NEOS, expressed criticism. ÖVP councilor Kurt Hohensinner called the sudden halt of funding a blow to numerous Graz residents, families, and community groups. He criticized the city government for failing to provide advance notice, despite its public commitment to social justice. While acknowledging the necessity of austerity, Hohensinner argued that predictability and reliability are crucial for both the city administration and local organizations. FPÖ councilor René Apfelknab commented that promises made during the campaign were not matched by actions post-election.