The European Commission sent a warning to the Czech Republic on 23 August to protect EU funds in the field of cohesion policy.
A Commission spokesperson confirmed on Monday 30 August that on 23 August 2021, “in order to address a horizontal risk related to the interpretation and application of a provision in the Czech conflict of interest Act relating to beneficiary companies held within trust funds, that was identified during a Commission audit in 2019, the Commission has issued a warning letter advising the national authorities of all ERDF and ESF programmes in the Czech Republic that it will suspend any future payment claims concerning these companies pending the implementation of system improvements to address this risk”.
On 29 November 2019, the final audit report on the European Regional and Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund was transmitted to the Czech authorities, the Commission told EUROPE.
After follow-up procedures to the audit, the majority of the audit recommendations have been implemented, including the programme to improve the management and control system to prevent conflicts of interest. However, some recommendations have not been implemented, the Commission explains.
Discussions between the Commission’s auditors and the Czech authorities are continuing on the remaining open issues.
On 16 June 2021, the Commission received a payment request for a company benefiting from Agrofert (Fatra) which was considered to fall under the conflict of interest provisions (Article 4.c of the National Conflict of Interest Act, which prohibits subsidies to certain companies). The Commission stopped this payment request. The EU budget therefore remains protected. (Original version in French by Lionel Changeur)