(Luxembourg, 7 October 2025) – The European Public Prosecutor’s Office (EPPO) in Ostrava (Czechia) brought charges against two individuals and one company, accused of subsidy fraud and damaging the financial interests of the EU, in connection with projects co-financed by the European Social Fund (ESF) and the Czech state budget.
According to the investigation, the suspects applied for subsidies for three projects in the Karviná district, presented as supporting children’s extracurricular activities, school clubs and summer day camps. However, the activities allegedly existed only on paper. Final project reports contained false information about staff and participants, including wage costs for employees who did not work there, inflated attendance numbers, and fabricated activities.
The damage amounts to approximately €280 000 (CZK 7 million), of which 85% originated from EU funds and 15% from the national budget.
In addition, one of the suspects and the company are charged with attempted subsidy fraud for a further application of EU funds of around €200 000 (CZK 5 million), which was rejected by the Ministry of Labour and Social Affairs.
The investigation, carried out by the Czech Police’s regional economic crime unit in close cooperation with the Ministry of Labour, included the review of extensive documentation, bank transactions and witness interviews. Assets have been frozen on the suspect’s bank account.
If found guilty, the defendants face up to eight years in prison, as well as possible confiscation of property.
All persons concerned are presumed 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.