Czech officials among suspects as EU fraud probe targets €13.5m subsidy scheme

569     0
Czech officials among suspects as EU fraud probe targets €13.5m subsidy scheme
Czech officials among suspects as EU fraud probe targets €13.5m subsidy scheme

The European Public Prosecutor’s Office (EPPO) in Brno (Czechia) has dismantled an organized crime group involving public officials suspected of wrongdoing in subsidy procedures for the reconstruction of research premises. Seven suspects were detained today, including three public officials.

A total of 13 house and company searches were carried out, including at the premises of Czechia’s Ministry of Industry and Trade, with the support of the Police of the Czech Republic, National Centre Against Organized Crime (Policie České republiky, Národní centrála proti organizovanému zločinu). A substantial amount of evidence was seized, as well as a building and over €2 million (CZK 51 million) in bank accounts.

At issue are EU subsidies from the Operational Programme Enterprise and Innovation for Competitiveness (OP EIC), allegedly obtained illicitly for developing an innovation centre for housing start-ups and scientific firms or projects. A businessman is suspected of using his connections to high-ranking public officials to benefit two companies managed by him. According to the investigation, the suspect, together with others who are also under investigation, prepared and submitted false or distorted information to the Czech Ministry of Industry and Trade, responsible for managing EU funds from the OP EIC.

Two high-ranking public officials of the Ministry of Industry and Trade are suspected of abusing their power to favour the criminal group, as well as a top-level civil servant at the Czech Building Authority (Stavební úřad), responsible for regulating construction and land use. The evidence suggests that the subsidies would not have been awarded without their involvement.

It is understood that the suspects attempted to illegally obtain funds amounting to €13.5 million (CZK 340 million), of which they have already received €5 million (CZK 123 million).

All persons concerned are presumed to be innocent until proven guilty in the competent Czech courts of law.

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.

Editorial Team

Thomas Brown

Head of Investigations

Corruption, Fraud, Brno, Organized Crime Group, Czechia, European Public Prosecutor’s Office (EPPO)

Read more similar news:

05.02.2023, 07:00 • Finance
Think twice before ordering drinks on tab - it could put your money at risk
05.02.2023, 07:00 • Finance
O2 issues warning over phone call and text that could drain your bank account
06.02.2023, 10:08 • Finance
Woman loses £14,500 after falling for man on Facebook group in romance con
08.02.2023, 12:15 • Investigation
'I was scammed by Tinder Swindler - never share your password with your partner'
09.02.2023, 08:00 • Crime
Conman Clint Canning, master of multiple fake identities, is back behind bars
16.02.2023, 06:31 • World
Fake doctor duped NHS £1.3m using forged qualifications to pursue 22-year career
18.02.2023, 07:30 • Crime
Cunning fake priest 'swindles millions from churches to buy premium llamas'
23.02.2023, 16:34 • Crime
Hapless burglar accepted brews from victims then left his DNA at crime scene
27.02.2023, 14:09 • Crime
'Despicable' case as woman in Scotland tricks mum out of nearly £50,000
28.02.2023, 16:13 • Crime
Fake psychiatrist who worked for 20 years under fake documents is jailed