The 1928 Liechtenstein embezzlement scandal was a scandal involving leading members of the Christian-Social People's Party, where it was revealed that they had embezzled funds from the National Bank of Liechtenstein for various speculative transactions. The scandal forced the government of Gustav Schädler to resign and early elections to be called. [1]
Starting from 1926, leading members of the Christian-Social People's Party, Franz Thöny, Anton Walser, Niko Beck, and Rudolf Carbone embezzled funds from the National Bank of Liechtenstein for various speculative transactions. [1] This included the expansion of the class lottery in Liechtenstein and Romania, which was operated by Walser and had the legal representation of President of the Landtag of Liechtenstein Wilhelm Beck, [2] who was also chairman of the bank's board of directors. [3] The program promised high income and employment for Liechtenstein, though proved controversial within both the Landtag of Liechtenstein and the general population. [2]
During this time, Walser lived in Bucharest for almost a year and gained contacts with Romanian ministries. He founded several companies during his time there such as a bank and advertising company, which were intended to be used for the class lottery. [4]
In June 1928, Walser, Niko Beck and Franz Thöny were arrested, with Rudolf Carbone being arrested in June 1929. In November 1929, Walser, who was primarily responsible, was sentenced to four years in prison, with the rest being sentenced to three. [1] Once the scandal came to light, the opposition Progressive Citizens' Party demanded that the government of prime minister Gustav Schädler immediately resigned, the Landtag be disbanded, and that all individuals involved are investigated. [5] The party threatened to hold a street demonstration to pressure the government if this did not happen. [6]
Johann II and the Progressive Citizens' Party blamed the Christian-Social People's Party and the government of Gustav Schädler for the scandal, as the men arrested were members of the party and Walser himself was the party's president. [1] Johann refused to receive Schädler in Vienna and instead invited Josef Ospelt, Emil Batliner, Fritz Walser, and Ludwig Marxer, where they recommended the immediate dissolution of the Landtag, dismissal of Schädler's government, and for new elections to be held. [6]
As a result, in June 1928 Johann forced Schädler's government to resign and early elections were called. Prince Alfred of Liechtenstein was temporarily appointed as acting as prime minister. [1] Schädler was not barred from re-election, but the 1928 Liechtenstein general election resulted in a win for the Progressive Citizens' Party and he was succeeded by Josef Hoop. [1] [7]
In 1931, an indictment was conducted against Schädler in the State Court of Justice for violating supervisory and official duties in the administration of the savings bank. [8] However, he was acquitted, partly because the statute of limitations had expired and partly because the breach of duty was not due to gross negligence. [7] In 1932, a similar indictment was laid against Wilhelm Beck for violating supervisory and official duties in the administration of the board of the directors of the National Bank of Liechtenstein. This resulted in him being ordered to pay damages in 1935; though he appealed this ruling, he did not live to see the outcome. [3]
The Christian-Social People's Party accused government councillor Peter Büchel of being complicit in the scandal, but he immediately demanded an investigation and was acquitted of all allegations. [9] [10]
Johann II assumed responsibility for the losses caused by the embezzlement, and donated one million Swiss francs. Local communities pledged their land for a week in order to support economic recovery. In addition, another two million francs was taken out as a loan from Switzerland in order to restructure the National Bank - the equivalent of two yearly budgets. [1]
The Christian-Social People's Party believed that they had felt treated unfairly by Johann II by being refused an audience, as they believed that by only receiving people from the Progressive Citizens' Party that he was being fed biased and incomplete information on the scandal. [1] [11] The party remained alienated from him for the rest of his reign; this tension continued under his successor Franz I and the successor party Patriotic Union. [1] The rift between the prince and the party would not be resolved until 1938 with Franz Joseph II ascending to the throne and the formation of a coalition government between the Progressive Citizens' Party and Patriotic Union. [12] [13] [14]
The scandal greatly undermined the political power of the Christian-Social People's Party and later Patriotic Union in Liechtenstein politics, with it being used as proof of alleged incompetency of the party. [1] The party would not form its own government again until 1970 under Alfred Hilbe. [15] [14]
Political identity came to the territory now occupied by the Principality of Liechtenstein in 814, with the formation of the subcountry of Lower Rhætia. Liechtenstein's borders have remained unchanged since 1434, when the Rhine established the border between the Holy Roman Empire and the Swiss cantons.
Gustav Schädler was a teacher and politician from Liechtenstein who served as Prime Minister of Liechtenstein from 1922 to 1928. He previously served in the Landtag of Liechtenstein from 1919 to 1922.
General elections were held in Liechtenstein on 15 July 1928, with a second round on 29 July. Early elections was called after Prince Johann II forced the resignation of the Christian-Social People's Party government of Prime Minister Gustav Schädler due to an embezzlement scandal at the National Bank of Liechtenstein. The result was a victory for the opposition Progressive Citizens' Party, which won 11 of the 15 seats in the Landtag. Voter turnout was 93%.
Franz Josef Hoop was a Liechtensteiner diplomat and politician who served as Prime Minister of Liechtenstein from 1928 to 1945. Hoop is best known for his efforts to retain Liechtenstein's neutrality and independence during World War II. Serving for seventeen years, he is the longest-serving prime minister in the country's history, ahead of his successor Alexander Frick by 79 days. He served under the reign of Johann II, Franz I and Franz Joseph II, making him the only prime minister to serve under three Princes of Liechtenstein consecutively.
The Christian-Social People's Party, often shortened to simply the People's Party, was a social liberal political party in Liechtenstein. It tended to be more popular in the Oberland, and supported closer ties with Switzerland as opposed to Austria. Founded in 1918, the Christian-Social People's Party and the Progressive Citizens' Party (FBP) were the first political parties in Liechtenstein.
General elections were held in Liechtenstein on 24 November 1862. Twelve of the seats in the Landtag were indirectly elected by electors selected by voters. They were the first general elections held following the ratification of the 1862 Constitution of Liechtenstein in September of the same year, in which the Landtag was established.
Otto Schaedler was a physician and political figure from Liechtenstein who served in the Landtag of Liechtenstein and was one of the founders of the Patriotic Union party.
Alois Ritter was a lawyer and political figure from Liechtenstein who was one of the founders of the Patriotic Union party and served as the President of the Landtag of Liechtenstein in 1954 and again in 1956.
Alfons Feger was a teacher and politician from Liechtenstein who briefly served as acting Prime Minister of Liechtenstein from May to June 1922. He also served as Deputy Prime Minister from March to June 1922 and again from June 1922 to 1928.
Peter Büchel was a civil servant from Liechtenstein who served in the Landtag of Liechtenstein from 1918 to 1939. He also served as a government councillor from 1926 to 1938.
Wilhelm Beck was an advocate and political figure from Liechtenstein who was one of the founders of the Christian-Social People's Party and served as the President of the Landtag of Liechtenstein from 1922 to 1927.
The first Josef Hoop cabinet was the governing body of Liechtenstein from 6 August 1928 to 28 February 1936. It was appointed by Johann II and continued by his successor Franz I. It was chaired by Josef Hoop.
The GustavSchädler cabinet was the governing body of Liechtenstein from 10 June 1922 to 15 June 1928. It was appointed by Johann II and was chaired by Gustav Schädler.
The November 1918 Liechtenstein putsch, also known as the Beck putsch was a de facto coup d'état by the leaders of the Christian-Social People's Party against the government of Governor of Liechtenstein, Leopold Freiherr von Imhof. The coup forced Imhof's government to resign and established a Provisional Executive Committee in his place until 7 December.
Fritz Walser was a political figure from Liechtenstein who served as President of the Landtag of Liechtenstein from 1919 to 1921.
Liechtensteiner Nachrichten, known as the Oberrheinische Nachrichten until 1924 was a weekly newspaper in Liechtenstein from 1914 to 1936. It was the official newspaper of the Christian-Social People's Party.
Albert Schädler was a Liechtenstein politician, physician, and historian. He served as the President of the Landtag of Liechtenstein from 1882 to 1886, and again from 1890 to 1919. A member of the prominent 19th-century Schädler family, he was well regarded as a physician and politician, and influenced the country's politics for decades.
Anton Kirchthaler Walser was an industrialist and political figure from Liechtenstein who served in the Landtag of Liechtenstein. He was convicted of embezzlement in 1929.
Eugen Schädler was an industrialist and politician from Liechtenstein who served in the Landtag of Liechtenstein from 1939 to 1957.
