Austrian Court Clears Way for Eurofighter Embezzlement Trial

The Higher Regional Court (OLG) in Vienna has rejected appeals by several defendants against charges of embezzlement in connection with the Eurofighter procurement case. This decision paves the way for a full trial, with proceedings anticipated to commence in March 2026.

The charges, brought by the Austrian Economic and Corruption Prosecutor's Office (WKStA), focus on alleged financial misconduct involving three individuals. The accused are suspected of assisting a former German manager of the aerospace company EADS, who was previously convicted in Germany, in facilitating illicit payments. The financial damage from these activities is estimated at approximately 65 million euros.

The allegations center on the establishment of the shell company VECTOR Aerospace LLP, which was reportedly used to create fictitious contracts and invoices. Through these mechanisms, substantial funds were allegedly siphoned off from EADS without corresponding services being rendered. The German manager implicated in this scheme was given a suspended prison sentence by a Munich district court in 2019.

Prosecutors assert that the three accused played a role both in founding VECTOR Aerospace and in executing the related contracts and invoices that enabled the alleged embezzlement. According to court documents, two of the defendants, who are believed to have acted as arms lobbyists, had filed objections to the charges. Their legal arguments claimed that EADS suffered no real financial loss or alternatively, that any alleged wrongdoing was subject to the statute of limitations.

The Vienna court, however, found the prosecution's case sufficiently substantiated to merit a trial. The court stated that the existing body of evidence supports a strong suspicion of criminal conduct. Nonetheless, it emphasized that the final determination of guilt will be made during the course of the trial, as the evidence is examined in detail.

The defendants, represented by a team of defense attorneys, have denied any abuse of their former positions and are expected to plead not guilty. The legal proceedings are just the latest development in a long-running investigation into the Eurofighter deal, which dates back to the early 2000s.

The decision to procure new interceptor aircraft was made by the Austrian government in 2000, with the Eurofighter ultimately chosen in 2002 to replace the aging fleet of Draken jets. The contract was signed the following year, and the transaction has since become the subject of multiple parliamentary investigations and legal actions amid allegations of corruption and wrongdoing.

Since 2019, the WKStA has been leading the investigation into the Eurofighter case, taking over from the previously responsible Vienna prosecutor's office. The legal scrutiny and proceedings related to the Eurofighter acquisition remain ongoing, reflecting the complex and protracted nature of this high-profile defense procurement controversy.