Police end inquiry into abused EU subsidy for Lipno

Lipno nad Vltavou, South Bohemia, Feb 20 (CTK) - The Czech police have completed an investigation into the abuse of a 15.5-million-crown subsidy for the Lipno dam and they proposed that the suspected man be charged, anti-corruption police squad spokesman Jaroslav Ibehej told CTK Wednesday.

The subsidy was earmarked for the construction of a levee for rescue boats. However, the man allegedly intended to use it to build a commercial marina.

He is accused of an attempted fraud with a subsidy. If found guilty, he faces up to ten years in prison, Ibehej said.

The man applied for a subsidy from the EU and the Czech budget in 2008 as a statutory representatives of a voluntary self-rule association called the Water Rescue Service, seated at the Lipno dam.

"Besides, after completing the construction, they were to pretend working as an active rescue service though the marina was mostly used by people incapable of executing professional rescue work," Ibehej said.

The Local Development Ministry reported on the case in September 2010.

The Squad for Uncovering Corruption and Financial Crime started to investigate it and prevented the subsidy drawing, Ibehej added.

Now the Regional State Attorney's Office will receive the file from the police along with the proposal for charging the suspect.

He is prosecuted without being taken into custody.