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EU subsidy fraud ring worth €160 million uncovered in Czech Republic with 22 arrested

A couple walk past EU flags outside EU headquarters in Brussels, on 26 October 2021.
A couple walk past EU flags outside EU headquarters in Brussels, on 26 October 2021. Copyright  AP Photo
Copyright AP Photo
By Estelle Nilsson-Julien
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A core group of 16 suspects have been charged with corruption, subsidy fraud, damaging the financial interests of the EU and money laundering.

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Czech police have detained 22 individuals connected to suspected corruption and EU subsidy fraud worth at least €160 million in the country's healthcare sector.

A probe led by the European Public Prosecutor’s Office (EPPO) found that 16 suspects exploited public procurement processes by demanding and providing illicit financial gains for the implementation of contracts for the Motol University Hospital in Prague, which is the biggest hospital in the Czech Republic.

The 16 suspects have been charged with corruption, subsidy fraud, damaging the financial interests of the EU and money laundering, said the EPPO and Czech police.

"There is reason to believe that serious corruption has affected the implementation of projects financed or co-financed by the EU through the Czech National Recovery Plan and the European Cohesion Fund (Operational Programme for the Environment 2014-2020), with a total value of over €160 million," the EPPO said in a statement on Monday.

More than 350 police officers carried out 46 searches across the Czech Republic as part of the probe. These sweeps included the Motol University Hospital, multiple commercial premises, and one law firm, according to the EPPO.

The suspects, who have not been named, face prison sentences of up to 12 years if found guilty, Czech police said.

The EPPO is the independent public prosecution office of the European Union, responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.

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