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(Luxembourg, 1 February 2024) – Three people have pleaded guilty to subsidy and procurement fraud, in an investigation led by the European Public Prosecutor’s Office (EPPO) in Zlín (Czechia) into the suspected manipulation of a public contract at the National History Museum in Olomouc. One of the defendants also pleaded guilty to charges of passive corruption and money laundering.
The defendants are a former director of the museum and two of its former employees. The accusations relate to the project ‘Virtual museum in education – the use of new digital technologies in the connection of formal and informal education’, financed by the European Structural and Investment Funds’ Operational Programme for Research, Development and Education, and granted by the Czech Ministry of Education, Youth and Sports. The estimated damage is approximately €540 000 (CZK 13.5 million).
According to the evidence, at least 14 members of the team ostensibly working on the project did not carry out any of the project’s activities. In addition, two of the defendants are accused of unduly favouring a specific supplier during the procedure to award the public contract of the project.
In order to recover the damage to the EU budget, the Czech police’s National Centre against Organized Crime (Národní centrála proti organizovanému zločinu – NCOZ), on behalf of the EPPO, seized assets and real estate worth €600 000 (CZK 15 million), earlier in this investigation.
The accused signed an agreement of guilt and punishment (plea agreement), which was submitted to the Regional Court in Ostrava today for approval. All three pleaded guilty and agreed to a sentence of three years’ imprisonment, suspended for five years. In addition, they will have to reimburse the remaining amount of the damage during the probation period, and each pay a fine of €20 000 (CZK 500 000). If the agreement is approved by the court, they will also be banned from applying for subsidies for a period of 10 years.
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.