New EU funds scandal implicates Social Democratic Party

Radek Nohl
6. 9. 2012 16:18
Subsidies were to be used to finance Social Democratic ad campaign in northern Bohemia
Pavel Kouda (on the left)
Pavel Kouda (on the left) | Foto: Ludvík Hradilek

Prague - Police arrested six people this week over a suspicious public contract for promoting revitalized mining sites in northwest Bohemia.

Among the arrested is Pavel Kouda, influential member of the Social Democratic Party's (CSSD) North Bohemia organization and deputy governor of the Usti nad Labem Region.

Today, an Usti nad Labem court ordered Kouda to be taken into custody.

Aktualne.cz has learned that the anti-organized crime unit (UOOZ), which handles the case, has eavesdropped on Kouda for several months.

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After his arrest, Pavel Kouda stepped down as deputy governor and suspended his membership in the CSSD.

His lawyer Vencislav Sabotinov explained that Kouda does not want to harm his party's reputation ahead of the Senate and regional elections.

Shortly after Kouda's arrest, the CSSD removed his name from the party's Usti nad Labem Region electoral list.

The investigation was launched on the basis of a letter sent by the Regional Development Ministry's official Vit Sumpela to Pavel Markvart, head of the Regional Operational Program (ROP) North-West's office that handles EU subsidies for the region. Markvart was arrested and taken into custody alongside Kouda.

The letter is included in the police file on the case.

In the letter, Sumpela had warned about possible abuse of EU subsidies for the said project. "The information we received suggests that the funds were aimed at the Czech Social Democratic Party's ad campaign in the Usti nad Labem Region," wrote Sumpela in the letter obtained by Aktualne.cz.

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The Finance Ministry eventually refused to provide EU funds for what it considered a significantly overpriced contract. In the end, the project was financed from the region's own budget.

UOOZ spokesman Pavel Hantak refused to confirm that the arrested are suspected of using EU funds to finance a CSSD ad campaign.

The ROP North-West's office said that the subsidies were not used for this end.

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