African countries seek reparations in Austria over Madoff case
Vienna - Six African nations lodged claims with Bank Austria for placing millions of euros in the fraudulent investment scheme set up by New York financier Bernie Madoff, an Austrian daily reported Thursday.
The Central African States Development Bank (BDEAC) claims it placed 16 million euros (23 million dollars) - a third of its capital - with Bank Austria, which then used the now-defunct Medici bank in Vienna to invest in the scam.
The BDEAC's head and Finance Minister of the Republic of Congo, Pacifique Issoibeka, has also contacted the Austrian government, making it indirectly responsible for the losses, the regional Oeberoesterreichische Nachrichten said in its Thursday evening edition.
Bank Austria did not comment on the claim when contacted by the German Press Agency dpa, citing banking secrecy rules.
Spokesman Martin Halama said his bank had indeed invested in Madoff funds, but was not to be blamed.
"Bank Austria can really not understand how we can be faulted for the biggest fraud case in US history," said Halama, whose bank is part of the Italian Unicredit group.
Bank Austria holds a 25-per-cent stake in 20.20 Medici, the successor to Medici bank which recently lost its license.
According to earlier media reports, the national financial watchdog has contacted Vienna prosecutors about Bank Austria's information policy towards customers regarding investments with Madoff.
The BDEAC was founded by Congo, Cameroon, the Central African Republic, Gabon and Chad. (dpa)