Swiss firm ordered to repay CHF 99,644 in COVID-19 aid after dividend breach
An Aargau-based real estate and trading company has been ordered to repay nearly 100,000 Swiss francs in COVID-19 support funds. The firm received the subsidy in 2021 but later violated strict conditions tied to the payment. Authorities have now demanded full repayment of the 99,644-franc grant.
The company was awarded a fixed-cost subsidy of 99,644 francs in July 2021 to help offset pandemic losses. Under the scheme's rules, businesses receiving such funds were banned from declaring or paying dividends or bonuses for four years.
In October 2023, the firm approved a 150,000-franc dividend payout, breaching the agreement. When challenged, the company claimed it was unaware of the prohibition and argued that the dividend was not distributed in cash.
The Cantonal Office for Economic Affairs and Labour (AWA) rejected these arguments. Officials noted that the firm had explicitly acknowledged the dividend ban in its original application. The government also stressed the importance of ensuring taxpayer funds are used correctly and that all businesses are treated equally.
As a result, the AWA revoked the funding decision and demanded full repayment. The firm was further advised to set up an instalment plan to avoid potential bankruptcy.
The company must now return the full 99,644-franc subsidy. Authorities have made clear that compliance with funding conditions is non-negotiable. The case highlights the strict enforcement of rules governing pandemic-related financial support.
