Seven people — including three public officials — have been detained in Czechia in an investigation into suspected fraud involving EU subsidies worth up to €13.5 million.
The investigation is being handled by the European Public Prosecutor’s Office (EPPO) office in Brno and concerns alleged wrongdoing in subsidy procedures linked to the reconstruction of research premises, the EPPO reported.
Officers carried out 13 searches of homes and companies, including at the Czech Ministry of Industry and Trade, with support from the Police of the Czech Republic’s National Centre Against Organised Crime.
Investigators seized evidence as well as a building and more than €2 million (CZK 51 million) in bank accounts.
Alleged links to innovation centre funding
The case concerns EU funding from the Operational Programme Enterprise and Innovation for Competitiveness — a scheme supporting business and innovation — which investigators believe was obtained illicitly for developing an innovation centre intended to house start-ups and scientific firms or projects, the EPPO said.
A businessman is suspected of using connections to high-ranking public officials to benefit two companies he managed, while those under investigation are suspected of submitting false or distorted information to the Ministry of Industry and Trade, which manages the programme’s EU funds in Czechia.
Two senior officials at the ministry are suspected of abusing their power to favour the group, alongside a top-level civil servant at the Czech Building Authority, which regulates construction and land use. The subsidies would not have been awarded without their involvement.
The suspects are believed to have tried to illegally obtain €13.5 million (CZK 340 million), of which €5 million (CZK 123 million) had already been received.
All those involved are presumed innocent until proven guilty in Czech courts.
