Czech region asks police to investigate European Social Fund allocations

Today’s Liberec edition of the daily Mladá fronta DNES (MfD) reports that the Liberec Regional Authority wants the allocation of social subsidies in recent years to be investigated by police. Due to errors in the management of those subsidies and insufficient oversight, the region may have to return millions of Czech crowns received from EU funds for spending on social projects. A recent audit has revealed that not only have some subsidy recipients committed errors, but that the blame lies mainly with politicians and regional bureaucrats.

The scandal concerns the drawing of subsidies from the European Social Fund, from which the region received CZK 225 million for social prevention services. Allegedly, the Liberec Romani Association (Liberecké romské sdružení – LRS) unjustifiably received more than CZK 25 million in ESF monies. An audit commissioned by the Regional Authority shows that bureaucrats and politicians had information on hand that the LRS had enormous deficiencies in its financial management but never canceled the subsidy.

"I will submit the work to the oversight committee, but I personally believe it should be submitted to public prosecutors as grounds for further investigation," Petr Tulpa (Mayors for Liberec Region), the region’s councilor for social affairs, told the daily. In his view, the previous Social Democratic leadership of the Regional Authority undervalued oversight.

The program is now being investigated by the revenue authority and the region will evidently have to return the money. "I am concerned they will levy a hefty fine against us," Governor Martin Půta (Mayors for Liberec Region) commented.