Czech national law enforcement authorities carried out searches 10-11 June as part of an investigation into suspected fraud involving funds intended for employee training, financed by the EU under the National Recovery Plan.
A total of 32 residential and non-residential searches were conducted, at the request of the European Public Prosecutors Office by the Police of the Czech Republic (Policie České republiky), namely the Regional Directorate of the Police of the Moravian-Silesian Region, Economic Crime Department (Krajské ředitelství policie Moravskoslezského kraje, Odbor hospodářské kriminality).
Criminal proceedings have been initiated against 18 individuals and 15 companies on charges of subsidy fraud and damage to the financial interests of the EU. The police also interviewed dozens of employees who were supposed to have participated in training sessions.
According to the investigation, the suspects, acting in managerial positions within companies applying for subsidies, collaborated with individuals involved in the subsidy administration process and certain trainers to provide false information regarding the implementation of information technology training activities. In several cases, they allegedly claimed that training sessions had taken place when they had not, or reported a higher number of trained employees than those who actually participated.
Individual companies received subsidy amounts ranging from approximately €10 000 (CZK 250 000) to approximately €80 000 (CZK 2 000 000) for training activities.
The suspects’ conduct is alleged to have caused damage to the EU budget of approximately €268 000 (CZK 6.7 million). They are also suspected of attempting to obtain additional undue benefits amounting to approximately €161 000 (CZK 4.03 million), which would have resulted in further damage to the EU budget.
The police seized assets of the suspected persons and companies, including funds in bank accounts, a property located in Prague, and cash and gold found during the searches, worth approximately €800 000 (CZK 20 million).
All persons concerned are presumed innocent until proven guilty in the competent Czech courts of law.
The European Public Prosecutor’s Office (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.
