Publishers Offer Politicians Deal For Favorable Reporting And More Ads, Get Caught

Michael Hedges April 10, 2023 Follow on Twitter

Through the coronavirus pandemic media outlets lobbied for increased support. For some publishers financial circumstances had already turned perilous. Digital transition had not been easy. Certain publishers knew which politicians might be receptive to opening the public purse.

Executives of two Austrian tabloids may have pushed a quid pro quo to major politicians; favorable coverage in return for increased government advertising, reported Der Standard (April 3). An investigation by the Office of Economic and Corruption Prosecutions (WKStA) revealed correspondence between tabloid Heute managing director Eva Dichand, her husband, Kronen Zeitung managing director Christoph Dichand and Ministry of Finance secretary general Thomas Schmidt.

The contact trickled up through Austrian People’s Party (ÖVP) Vienna branch chairperson Gernot Blümel, until late 2021 Austria’s Finance Minister, and on to Chancellor Sebastian Kurz, who “paused” and then resigned over allegations he authorized payments to Kronen Zeitung for publishing “polls with skewed data that made him appear more popular,” noted Reuters Institute (January 24, 2022). Herr Schmidt gave damning testimony to the WKStA investigation, which began in October last year.

Former Chancellor Kurz was previously bounced from his position in the aftermath of the surreptitiously obtained video of deputy Chancellor Heinz-Christian Strache offering Kronen Zeitung, an unnamed channel of public broadcaster ORF and other goodies to a “Russian.” The 20 hour video was recorded at a villa in the Spanish resort of Ibiza in the summer of 2017. It was a deliberate “sting.” Excerpts were broadcast widely on German-language TV channels in 2019. Herr Strache and more than a few prominent Austrian politicians exited their positions. Eventually, the Ibiza Affair claimed Herr Kurz.

Government advertising placements in newspapers, according to the Der Standard reporting, inflamed Frau Dichand. She was “pretty shocked” that“Fellner receives so much money.” That would be Wolfgang Fellner, principal owner of tabloid Österreich (Austria). His other occupation is that of a TV talkshow host. Herr Fellner and brother Helmuth had “arrangements” with politicians for “protection money,” reported Falter chief editor Florian Klenk (June 3 2021). “If you pay me, then protect yourself from negative reporting. If you don't pay me, then I can't guarantee anything."

Frau Dichand and her husband were also quite interested in lobbying for changes to the Private Foundation (Privatstiftung) Law. “Alleged friends” of Frau Dichand, said WKStA witness Herr Schmidt, "wanted to achieve more flexibility, less transparency in disclosures and the possibility of dissolving a foundation at reduced tax rates by changing the foundation law,” reported Puls24 (April 7). The Private Foundations Law was introduced in 1993 to dissuade Austrians from moving their wealth abroad. In return there are tax advantages and, of course, near-complete privacy. Foundation “partners” want the tax rates further lowered. It’s always about the money.

Kronen Zeitung is the biggest newspaper in Austria, both by circulation and influence. It is considered editorially right-wing populist and eurosceptic. The late Hans Dichand, father of Christoph Dichand, ran the newspaper until his death in 2010. German publisher WAZ Mediengruppe was a significant shareholder until its exit in 2014.

Austria’s major publishers are consistently given high marks for professionalism. The country, itself, is ranked 11th in the Reporters sans Frontiers 2022 World Press Freedom Index. Die Presse, Der Standard and Weiner Zeitung are considered world-class newspapers. At the other end of the scale are tabloids Kronen Zeitung, Heute and Österreich, known mostly for wild headlines, gossip and dodgy photos.

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