Prague, Jan 16 (CTK) – The committee of the Regional Operational Programme Central Bohemia did not approve the removal of Capi hnizdo project, implicating Prime Minister Andrej Babis (ANO), from the EU financing on Tuesday.
The body is dominated by the Central Bohemia opposition, TOP 09, the Mayors and Independents (STAN) and the Civic Democratic Party (ODS).
In doing so, it did not comply with a recommendation by the Finance Ministry and the European Anti-Fraud Office (OLAF).
The opposition is of the view that if it did, the case would be pushed to the national level and swept under the carpet.
Members of the committee for ANO disagreed with this, arguing that the programme should be technically closed.
The police have brought accusations against Babis and ANO first deputy head Jaroslav Faltynek over the 50 million crowns subsidy from EU means for the Capi hnizdo (Stork Nest) recreational and conference complex.
The committee member for ANO Gabriel Kovacs raised the objection that in this way, the prosecution would not be halted.
“If we exempt the project, the European part of the subsidy will become a national affair,” committee member Jan Jakob (TOP 09) said.
“I understand that the EU and OLAF recommend to us that we remove the project because they found major deficiencies and did not want to have anything in common with this,” Jakob said.
He said for the EU, this was a closed affair, due to which it would be dealt with at the national level.
“However, on account of the composition of the government that has no confidence, I am afraid that this might be swept under the carpet,” Jakob said.
Babis’s government, only comprising ANO members, has not yet gained confidence in the Chamber of Deputies.
Jakob said he was afraid Capi hnizdo would be eventually taken out from the European sponsoring by the Finance Ministry, which was within its powers.
Until late 2007, the Farma Capi hnizdo company belonged to Babis’s Agrofert concern. Afterwards, its stake was transferred to bearer shares so that Capi hnizdo as a small firm could win the subsidy, which a firm of the huge Agrofert could never get. It observed this condition for a few years, but later it became part of Agrofert again. Moreover, the investigators concluded that there was no economic or trade reason to make the change.
In February 2017, billionaire businessman Babis transferred Agrofert to trust funds to comply with a new conflict of interest law.
Both Babis and Faltynek plead innocent, arguing that the affair is devised to push them out of the politics.
