Minister for Regional Development Zuzana Mrázová (ANO) has revealed that the majority of funds allocated to the Agency for Social Inclusion were spent on internal operations rather than providing direct aid to those in need.
Speaking at a press conference on Thursday, Mrázová stated that approximately 70 percent of expenditures were directed toward employee salaries and the creation of supporting materials. She argued that these funds failed to reach the target group of people requiring direct assistance to escape social exclusion.
Rising Social Exclusion and Audit Findings
Referencing a report from the Supreme Audit Office, Mrázová noted that the number of socially excluded individuals has increased. Over a 20-year period, the number of socially excluded localities rose from 310 to approximately 700.
The Ministry for Regional Development (MMR) received the audit report in autumn 2024. According to Mrázová, the leadership at that time—which included Ivan Bartoš (Pirates) and later Petr Kulhánek (STAN)—concluded that the agency’s funding was unsystematic.
Organizational Restructuring and Conflict
Under Mrázová’s leadership, ten positions were eliminated within the agency, while six new roles were created following a reorganization. On April 1, the department for social inclusion merged with the housing department to form the new Department for Housing Development and Cohesion.
This restructuring led to unions declaring strike readiness in March. Former head of the department for social inclusion, Martin Šimáček, declined to comment on the Minister’s claims due to current employment-law relations.
Allegations of Conflict of Interest
Mrázová also raised concerns regarding the housing department, alleging that former director Vít Lesák operated in a conflict of interest. She claimed that between 2022 and 2025, Lesák served as the department director while simultaneously sitting on the control commission of the Platform for Social Housing.
According to the Minister, the MMR provided nearly four million CZK to the Platform during Lesák’s tenure, while the organization drew nearly 70 million CZK in total public funds. Lesák has denied these allegations, stating he has evidence that neither he nor other staff were involved in evaluating or allocating grants to the Platform.
Petr Kulhánek defended both Lesák and Šimáček on social media, describing them as recognized experts and criticizing Mrázová’s assertions.
Next Steps and Oversight
The Minister announced that the ministry is now obligated to review all projects implemented by the department for social inclusion. This process may involve auditing project outputs, the use of human resources, and the effectiveness of public spending, with a specific focus on external contracts and personnel.
The report is scheduled to be discussed by the House Control Committee on May 14, which could lead to further scrutiny of the agency’s financial history.
Frequently Asked Questions
What percentage of the agency’s budget went to internal costs? Approximately 70 percent of expenditures were spent on salaries, methodologies, analyses, and evaluations. How has the number of excluded localities changed over time? Over 20 years, the number of socially excluded localities increased from 310 to roughly 700. What happened to the Agency for Social Inclusion on April 1? It merged with the housing department to become part of the newly created Department for Housing Development and Cohesion. Do you believe administrative costs in social agencies are often overlooked in favor of direct aid figures?
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