Too many debts after the Ski World Cup: the local council in Seefeld dissolved

A report by the State Audit Office (LRH) on the financial situation of the municipality, its subsidiaries and the World Cup revealed: In addition to nine million euros in financial debts, the municipality is also liable for 36 of a total of 61 million euros in liabilities of the “subsidiaries”. For Tyrol’s LH Anton Mattle (ÖVP), Seefeld has “taken over” with the World Cup.

The financial problems also led to political turmoil in the community. According to “ZIB 2”, the Seefeld local council dissolved on Tuesday evening. A state administrator is now taking over the business. The mayor of the community, Markus Wackerle (ÖVP), resigned in October and no one wanted to succeed him. There should be new elections at the beginning of next year.

The State Audit Office did not see any comprehensible cost and financing targets when it came to the World Cup. Inadequate controlling and unrealistic project planning in the course of the major sporting event, which apparently contributed significantly to the deep financial hole in the wealthy tourist community near Innsbruck, were also criticized in the published audit report, which was reported by the “Tiroler Tageszeitung” and ORF Tirol on Tuesday reported.

Relevant documents, including those relating to the construction of the World Cup, are missing and have not been secured and archived. Although there was already talk internally of sports infrastructure costs of over 30 to 35 million in 2015, only 17.8 million euros were set for financing in the master contract in 2016, the “TT” quoted from the audit report. The final billing was 31.2 million euros.

Initially, Seefeld decided to make an investment contribution for the World Cup (sports facilities and transport infrastructure) of 4.5 million euros, but now it has increased to 8.8 million euros. According to the report on financing the World Cup, a loan of seven million euros had to be taken out in 2021. In total, the total costs could increase to 15.5 million euros, according to the State Audit Office.

Mattle: “Seefeld has taken over”

Meanwhile, the municipality stated in a statement on the costs of building the infrastructure that “the lesson learned from the handling of the Nordic World Ski Championships 2019 was that such major events involve unforeseeable risks for the public sector due to a lack of specialist knowledge in all areas of handling.” Therefore, the public sector should “only provide advice and support,” it said. Incidentally, the approval of the assumption of liability in the run-up to the 2019 Nordic World Ski Championships was based on verbal funding commitments at a political level or on the instructions of the ex-ÖVP regional councilor Johannes Tratter, who was responsible for community affairs at the time.

Tyrol’s head of state and finance and community officer Mattle told the APA that there was a lot of effort behind the sporting events, especially from the host communities. Nevertheless, he admitted: “Seefeld was overwhelmed by the enthusiasm and euphoria about the Nordic World Ski Championships and the requirements and requirements for such an event.” In the future, major events will need “accompanying controlling by the federal, state and local authorities”. Now “how the federal government deals with the municipality of Seefeld and its path back to proper financial management will also be important. Because without hosts and their willingness there will be no more European Championships, World Cups or other competitions,” he said.

Community leadership saw a solution

The World Cup, Seefeld and unpleasant financial consequences have been a media topic for a long time. Throughout the year, the repayment of funding amounting to eight million euros to the federal government was an issue. The tourism association (TVB) paid three million euros in the form of a loan. Because the TVB did not grant its funds as funding, the federal government saw the funding being used inappropriately. That’s why there was a fight for repayment.

Recently, the community leadership – in coordination with the black-red state government and the state’s tourism department – suggested a solution. However, this has so far been largely rejected by the federal government. The APA was told in October that “requirements for improvement were identified in some points” of the submitted solution proposal. The federal government is demanding that the funding requirements be met, in particular that the tourism association provide a grant of 2.5 million euros.

The State Audit Office sees an urgent need for action

In any case, the State Audit Office clearly sees an urgent need for action given the general financial situation of the municipality. The bank debt of the associated companies alone was 55.3 million euros in 2022, more than six times as high as that of the municipality. The auditors therefore pushed for special repayments in order to reduce the risk for Seefeld and the overall burden of debt service contributions. It was said that the repayment obligation for a Swiss franc loan taken out for the renovation of the sports and congress center alone had increased from 16.5 to 17.5 million euros despite repayments. The loan must be repaid over the next ten years.

Meanwhile, the Tyrolean opposition parties also took up the ball from the State Audit Office on Tuesday and did not skimp on criticism of the ruling ÖVP. List Fritz club chairman Markus Sint identified “an ÖVP gang of four terrors” at work who were ultimately responsible for the “Seefeld million-dollar disaster”. “ÖVP Mayor Werner Frießer was only able to gamble and exceed financial limits because ex-ÖVP state governor and tourism state councilor Günther Platter, ÖVP sports state councilor Josef Geisler and ex-ÖVP municipal councilor Hannes Tratter held their protective political hand over it, actively participated and even gave instructions,” said Sint in a press release. The Seefeld fiasco “didn’t happen, the ÖVP rulers accepted it politically. They allowed Seefeld to sink deep into the debt swamp, and the citizens and taxpayers are paying the bill.” The club chairman demanded that the public must be able to hold the four ÖVP grandees harmless.

No less sharp was the criticism from the green club chairman and state spokesman Gebi Mair, who will be in a state coalition with the ÖVP until 2022. After Matrei in East Tyrol, Seefeld is now being “sent into financial overload” by ex-ÖVP regional councilor Tratter, said the club chairman. Ultimately, the liability releases for Seefeld were apparently only made on Tratter’s personal instructions. Mair now demanded “full transparency.” And he also took aim at Georg Dornauer (SPÖ), the deputy state governor responsible for sport: “To date, Dornauer has not been able to fulfill his promises to subsequently solve the financial crisis.”

NEOS state spokesman and club chairman Dominik Oberhofer also did not want to let the state off the hook. What has now become known is “not only responsible for a euphorically naive approach at the community level to the impending financial challenges, but above all the complete lack of control on the part of the state. That was grossly negligent.” Oberhofer saw Tratter in particular in the draw: “Regardless of whether it was the new MCI building, GemNova bankruptcy, Matrei in East Tyrol or now Seefeld – the financial debacles for which he was responsible run like a red thread through his political career.”

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