Česká spořitelna may withdraw from sCards project

Prague, March 6 (CTK) - The Ceska sporitelna (CS) Czech bank is of the view that its participation in the Labour and Social Affairs Ministry's project of electronic social cards (sCards) is losing its sense over the changes announced by the ministry Wednesday, the bank has said in its press release.

The ministry has proposed that the CS bank would open an account only to those who want to use the card for payment and withdrawing money from cash dispensers.

"We must take notice of the fact that the Labour Ministry is unilaterally withdrawing from the contract," the CS bank said.

Ministry spokeswoman Stepanka Filipova told CTK that the office would like to keep negotiating with the bank.

Under the contract signed between the Labour and Social Affairs Ministry, headed by minister Jaromir Drabek (TOP 09) then, and the bank in January 2012, 98 percent of state benefits and allowances should be paid via the sCard system and pensions should be sent this way, too, in the future.

The cards were criticised not only by the opposition but also by trade unions, the ombudsman, representatives of the National Disability Council and the ombudsman, along with some government coalition politicians.

Last December the ministry, with PM Petr Necas (Civic Democrats, ODS) present, reached an agreement with the Ceska sporitelna (CS) bank and the Ceska posta postal service saying the new electronic social cards would be obligatory only as identity cards for welfare recipients, but payment and withdrawal from cash dispensers would be optional.

However, now the ministry has proposed that the bank account for the sCard be optional, too.

The ministry said the duty to open an account with the CS bank would be at variance with the constitution, according to an expert analysis.

Filipova said the contract with the CS bank should be changed accordingly.

However, the bask disagrees with such a gross reduction of the previous agreement.

Labour and Social Affairs Minister Ludmila Muellerova (TOP 09) is to submit the respective bill to the government in March.

However, the ministry pledged in the contract with the CS bank that until 2024 it would not take any steps to restrict or even abolish the payment of welfare benefits via sCards.

Opposition Social Democrat (CSSD) chairman Bohuslav Sobotka told reporters Wednesday that the government TOP 09 should not head the Labour and Social Affairs Ministry any longer and at the same time, an independent inspection should check what happened at the ministry under Drabek.

Drabek resigned last year over a corruption affair of his former deputy Vladimir Siska whom police accused of bribery connected with an order for the ministry.