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Czechia could lose European Union funding for projects at Prague's Motol University Hospital (FNM) if it is proven that EU financial interests were violated, Health Ministry spokesperson Jan Řezábek told the Czech Press Agency (ČTK) on Monday.
So far, FNM’s ongoing construction projects have been funded solely by the state. The government has spent CZK 814 million on building a new oncology center, part of a larger CZK-4.5 billion project. Of that amount, 3.7 billion was supposed to come from the EU through the National Recovery Plan (NPO).
Under the NPO, FNM is currently working on seven additional projects worth nearly CZK 1 billion.
"In principle, we can say that the projects are being pre-financed from the state budget. It is necessary to meet the goals defined in the National Recovery Plan and to defend their fulfillment before the European Commission. The EU subsequently reimburses [part of the costs to] Czechia," Řezábek said.
If the court determines that EU financial interests were violated, Czechia will not be reimbursed, he added.
Seventeen charged in connection with money laundering
Police have charged 17 people with damaging EU financial interests, money laundering, subsidy fraud, and bribery related to FNM projects. If convicted, the main suspects face up to 12 years in prison.
The Health Ministry has provided two advance payments for the Motol Oncology Center: CZK 737.9 and CZK 102.9 million to cover VAT on the amount expected from European funds. According to Řezábek, CZK 2.96 billion remains for pre-financing the EU subsidy, with another 676.5 million to come from the state budget.
"None of the construction projects have been halted. They are under contract and must be completed," Health Minister Vlastimil Válek said Monday. He declined to speculate on how the case could affect EU reimbursement.
Former FNM director Miloslav Ludvík, whom Válek dismissed on Monday over corruption allegations, was remanded in custody along with Czech Sports Union head Miroslav Jansta. A court is reviewing police requests to detain three other suspects.
