Detectives from the National Organized Crime Agency have expanded a major corruption investigation involving Motol University Hospital, charging a new legal entity. The company, an Olomouc-based construction firm called Gemo, is responsible for the construction of an oncology center valued at 5 billion CZK.
Lidija Globokarová, a spokesperson for the European Public Prosecutor’s Office, confirmed that another legal entity has recently been charged in the case. Jana Složilová, a member of Gemo’s supervisory board, confirmed that criminal proceedings against the company began at the end of April.
Gemo has filed a complaint against the charges, with Složilová stating that the company and its employees deny any involvement in unethical or corrupt behavior.
Expanding Scope of the Investigation
The investigation now includes 19 individuals and six companies. Among the primary suspects are Miloslav Ludvík, the long-term director of the hospital and his former deputy, Pavel Budinský.
Police allege a systematic bribery scheme involving public procurement. According to investigators, money was exchanged in various locations, including Budinský’s office, the hospital grounds, a gas station, a Georgian restaurant, and the former deputy’s home.
The Oncology Center Scheme
The case highlights specific allegations regarding the 5 billion CZK oncology center. Police claim that Pavel Budinský pressured Miloslav Bouda, a Gemo board member charged last February, to hire entrepreneur Petr Kysučan as a subcontractor.
The subcontract for electrical, air conditioning, and ventilation work was valued at 300 million CZK. In exchange, police allege Budinský was promised bribes ranging between 11 and 17 million CZK.
Wiretaps captured Kysučan responding to the arrangement by stating, “they already know how to do this.” Police interpreted this as evidence of a repeating corrupt system.
EU Subsidies and Financial Damage
Because the oncology center is funded by European Union subsidies, investigators believe the corruption could cause damage totaling 2.7 billion CZK. Police stated that the accused intentionally violated principles of economy, efficiency, and purposefulness in the use of these funds.
The legal fallout has led to massive asset seizures. For Miloslav Ludvík, police have placed seals on a family home and land in Prague-Stodůlky, as well as funds, securities, and shares held in a J&T Bank account under his wife Renata’s name.
Pavel Budinský’s assets are even more extensive. Authorities have frozen funds across five bank accounts, securities, and vehicles. Police seals have been placed on 270 properties within the Czech Republic, as well as additional houses and land in Costa Rica and Montenegro.
Current Legal Status
The case began following a police operation in late February of last year. Miloslav Ludvík, Pavel Budinský, and lawyer Miroslav Jansta spent several months in custody but have since been released.
All three men deny the accusations. Ludvík maintains that the evidence will prove he committed no crime and has denied ever requesting a bribe.
Given the ongoing nature of the probe, further legal actions could be taken against the involved companies, and the court may eventually decide on the permanent confiscation of the seized international assets.
Frequently Asked Questions
Who is currently being prosecuted in the Motol hospital case?
The investigation currently involves 19 people and six companies, including former director Miloslav Ludvík and former deputy Pavel Budinský.
What is the alleged financial damage to the EU?
Investigators believe that the misuse of EU subsidies for the oncology center could result in damage amounting to 2.7 billion CZK.
What assets have been seized from Pavel Budinský?
Authorities have frozen five bank accounts, securities, vehicles, and 270 properties in the Czech Republic, along with land and houses in Montenegro and Costa Rica.
Do you believe stricter oversight of EU-funded construction projects could prevent these types of procurement schemes?
