(Luxembourg, 14 October 2025) – Following an investigation of the European Public Prosecutor’s Office of Ostrava (Czechia) into the fraudulent use of EU subsidies for the purchase of machinery, the Regional Court in Ostrava has approved a plea agreement resulting in the conviction of eleven defendants.
At issue are two engineering companies operating in the Olomouc Region. Through a chain of interconnected companies, the two firms artificially inflated the prices of machinery and production tools, intended for kitchenware production, and purchased with EU funds under the Operational Programme Enterprise and Innovation (OPEI). With their conduct, the defendants harmed the financial interests of the European Union, secured unfair advantages in public procurement procedures and in some cases laundered the proceeds of the crime.
The court imposed financial penalties on the defendants totalling €587 755 (CZK 14.4 million). In addition, they received suspended prison sentences, and some of them were also banned from engaging in certain business activities. The defendants have also repaid the damage caused to the EU, a total of €585 306 (CZK 14.34 million), and are further obliged, during the probation period, to repay the evaded VAT of €212 326 (CZK 5.3 million).
The investigation was supported by the Czech Police, Regional Directorate of the Olomouc Region (Policie České republiky – Krajské ředitelství policie Olomouckého kraje).
The EPPO is an 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.