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08/04/2026   European Public Prosecutor's Office News

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Czechia: Seven suspects detained over €13.5 million subsidy fraud involving public officials (Luxembourg, 8 April 2026) – The European Public Prosecutor’s Office (EPPO) in Brno (Czechia) has dismantled an organised crime group involving public officials suspected of wrongdoing in subsidy procedures for the reconstruction of research premises. Seven suspects were detained today, including three public officials. A total of 13 house and company searches were carried out, including at the premises of Czechia’s Ministry of Industry and Trade, with the support of the Police of the Czech Republic, National Centre Against Organized Crime (Policie České republiky, Národní centrála proti organizovanému zločinu). A substantial amount of evidence was seized, as well as a building and over €2 million (CZK 51 million) in bank accounts. At issue are EU subsidies from the Operational Programme Enterprise and Innovation for Competitiveness (OP EIC), allegedly obtained illicitly for developing an innovation centre for housing start-ups and scientific firms or projects. A businessman is suspected of using his connections to high-ranking public officials to benefit two companies managed by him. According to the investigation, the suspect, together with others who are also under investigation, prepared and submitted false or distorted information to the Czech Ministry of Industry and Trade, responsible for managing EU funds from the OP EIC. Two high-ranking public officials of the Ministry of Industry and Trade are suspected of abusing their power to favour the criminal group, as well as a top-level civil servant at the Czech Building Authority (Stavební úřad), responsible for regulating construction and land use. The evidence suggests that the subsidies would not have been awarded without their involvement.   more

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