Last week, on 31 May 2023, the European Public Prosecutor’s Office (EPPO) in Zlín (Czechia), in cooperation with the Czech police, brought charges against two individuals and one association, for subsidy fraud involving the construction of social housing for the elderly.
The two individuals are the managing director and a member of an association of public interest registered in Czechia, who obtained up to €250 000 (CZK 6.2 million) in funding from the EU’s European Regional Development Fund, for a social housing project. The aim was to convert a pre-existing building into a facility to house elderly people in individual apartments.
However, according to the investigation, in 2018 the association and its representatives made false statements in documents relating to the reconstruction project. In particular, they are believed to have started the reconstruction works before the handover protocol and other documents were submitted.
In order to recover the damage to the EU budget, on behalf of the EPPO, the Czech police (Policie České republiky) seized money and real estate of the association and its representatives worth €300 000 (CZK 7.5 million).
All persons concerned are presumed to be innocent until proven guilty in the competent Czech courts of law.