A lot of public money is involved in the expansion of high-speed internet. The federal government is supporting the expansion of broadband with around 1.4 billion euros, with the goal of having gigabit-capable connections in all federal states by 2030. In addition, there are significant investments from private providers.
Information from the German financial police prompted Austrian colleagues to carry out checks, which identified illegal practices in broadband expansion in Lower Austria and Tyrol. In St. Pölten, for example, two Swedish companies were found to be violating the Wage and Social Dumping Act (LSD-BG). In a Tyrolean municipality, a construction site was stopped following an inspection.
Sub-subcontractors common
“In all cases, corresponding criminal charges were filed,” the Finance Ministry announced in a press release on Wednesday. A total of 34 employees from seven companies in Sweden, Spain and Germany, as well as one domestic company, were checked. It was noticeable “that all contracts were awarded through several subcontractors and sub-subcontractors and that the intermediary companies were often not operational at all or would not have been able to carry out the contracts,” the ministry said.
Registration and wage documents for posted workers from other EU countries were missing and only some of the workers were registered with the Austrian Health Insurance Fund.
