Kouda released from custody

Usti nad Labem, North Bohemia, Oct 26 (CTK) - Pavel Kouda, former deputy governor of the Usti region who is suspected of manipulating EU subsidies, has been released from custody Friday, his defence lawyer Vencislav Sabotinov told CTK.

According to the state attorney, there is no need to fear Kouda's approaching of witnesses any longer, Sabotinov said.

Kouda, a member of the Social Democratic Party (CSSD) until his arrest in September, is the highest-ranking official involved in the series of scandals around the distribution of EU subsidies within the Northwest regional operational programme (ROP) in the Usti and Karlovy Vary regions.

He was to be the CSSD's number two candidate in the mid-October elections to the Usti reginal assembly but the party withdrew his candidacy after his arrest.

The two regions are entitled to a total subsidy worth 19 billion crowns, 16 billion of which have already been allotted to selected projects. The EC, however, has suspended the subsidies going to Northwest ROP from the EU funds.

The police arrested Kouda and Pavel Markvart, the Northwest ROP director, on September 4. They and other four people are suspected of abuse of power and harming the European communities' interests, for which they could face up 12 years in jail.

The suspects include Markvart's two predecessors in the post of Northwest ROP director, Petr Vrablik and Petr Kusnierz.

The court is to discuss releasing of Markvart from custody later Friday.

State attorney Jan Jakovec said he is unlikely to file criminal charges against Kouda and Markvart before the end of the year.

In a previously handled case of suspected EU subsidy manipulation, in which Kusnierz was a protagonist, according to the police, 16 months elapsed from Kusnierz's arrest to the first court verdict sentencing him to 7.5 years in prison. Kusnierz's appeal has not been decided on yet.

($1=19.167 crowns)