(Luxembourg, 24 September 2025) – Today, one company and its manager were convicted of fraudulently obtaining approximately €220 000 (CZK 5.5 million) in EU funds for a dust reduction project, following an investigation by the European Public Prosecutor’s Office (EPPO) in Zlín (Czechia).
The defendants provided false information in a subsidy application to obtain funding for a dust-reducing sweeping machine, financed by the European Regional Development Fund (ERDF) under the Operational Program Environment 2014-2020. The misrepresentations concerned the size of the company's premises, historical particulate matter emissions (that is, airborne particles like dust or soot that can affect air quality), and the presence of bulk material on site. In addition, the sweeping machine that was purchased with the funds did not match the project specifications and was used for unrelated purposes and location.
The manager was sentenced to a pecuniary penalty of €120 000 (CZK 3 000 000) and prohibition of dealing with subsidy bodies and participating in subsidy procedures in any capacity for a period of four years (except agriculture subsidies). The company was sentenced to a pecuniary penalty of €120 000 (CZK 3 000 000) and a prohibition to receive grants and subsidies for five years.
The verdicts were the result of an agreement on guilt and punishment (a plea bargain), as the defendants pleaded guilty to all charges. They were approved by the judge of the Regional Court of Ostrava, branch office in Olomouc.
The manager expressed regret at the unlawful activities and paid back the damage in full to the Ministry of the Environment of the Czech Republic. Moreover, the company refunded two other EU subsidies, amounting to a total of €360 000, following an internal audit during this investigation.
The facts were reported to the EPPO in April 2024 by the Czech Supreme Audit Office (Nejvyšší kontrolní úřad). The investigation was also supported by the Czech Police – Regional Directorate of the Olomouc region (Policie České republiky, Krajské ředitelství policie Olomouckého kraje v Olomouci).
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.
See also the press release published by the Czech Supreme Audit Office (Nejvyšší kontrolní úřad)