Czech officials detained in €13.5 milion EU subsidy fraud case

Seven people, including three public officials, have been detained in the Czech Republic on suspicion of fraud involving European Union subsidies, the European Public Prosecutor’s Office (EPPO) said.

Among those detained are two officials from the Czech Ministry of Industry and Trade and an employee of the Construction Authority, Caliber.Az reports, citing EPPO.

Police carried out 13 searches, seized ministry premises, and froze €2 million in bank accounts.

The suspects allegedly attempted to illegally obtain €13.5 million in subsidies under the EU’s “Enterprise and Innovation for Competitiveness” (OP EIC) program, intended to support the creation of an innovation hub for housing and scientific startups.

According to investigators, a businessman used his connections with officials to secure advantages for two companies under his control.

Together with other participants, he allegedly submitted false or distorted information to the ministry, and without the involvement of the three officials, the subsidies would not have been granted.

By Bakhtiyar Abbasov