Volkswalgen being investigated over use of EU funds to cheat emissions test

Thomson Reuters

VIENNA (Reuters) - Two companies and their bosses are under investigation in Austria for suspected serious fraud, environmental offences and financial crimes in relation to the Volkswagen emissions scandal, a spokeswoman for economic and corruption prosecutors said on Wednesday.

VW was plunged into the biggest business crisis in its 80-year history when the cheating scandal was exposed in September 2015. It has cost the company more than $25 billion in fines, compensation and vehicle refits.

The spokeswoman for the WKStA prosecutors' office said investigations had been ongoing for several months and are likely to continue for years. She declined to name the companies or individuals involved.

European anti-fraud office OLAF said on Tuesday it had sent its judicial recommendations to German prosecutors regarding its investigation into whether VW used EU funds and European Investment Bank loans to develop devices that cheated emission tests.

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