Finance

Czechs detain seven people over subsidy fraud, EU prosecutor's office says

Published by Global Banking & Finance Review

Posted on April 8, 2026

2 min read

· Last updated: April 8, 2026

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PRAGUE, April 8 (Reuters) - Czech authorities detained seven people, including two high-ranking Industry Ministry officials, over suspected European Union subsidies fraud, the EU prosecutor's office

Czech Officials Detained Over Alleged EU Subsidy Fraud Involving €13.5 Million

Details of the Alleged Subsidy Fraud Case

Detainment of Officials and Suspects

PRAGUE, April 8 (Reuters) - Czech authorities detained seven people, including two high-ranking Industry Ministry officials, over suspected European Union subsidies fraud, the EU prosecutor's office said on Wednesday.

Nature and Scale of the Alleged Fraud

The European Public Prosecutor's Office (EPPO) did not name the suspects but said they attempted to illegally obtain funds amounting to 13.5 million euros ($15.79 million), or 340 million crowns.

Purpose of the Subsidies

"At issue are EU subsidies...allegedly obtained illicitly for developing an innovation centre for housing start-ups and scientific firms or projects," EPPO said.

Additional Officials Involved

A top-level official at the country's Building Authority was also among those detained.

Reactions and Investigation Process

Official Responses

The Czech industry and development ministries had no immediate comment.

Investigation Findings

According to EPPO's investigation, a businessman with connections to officials submitted false information to the ministry managing the funds.

Police Actions and Seizures

Czech police carried out 13 searches in cooperation with the EPPO, seizing a building and 2 million euros in bank accounts, the statement said.

($1 = 0.8552 euros)

(Reporting by Jan Lopatka and Jason Hovet; Editing by Janane Venkatraman)

Key Takeaways

  • Seven individuals—including high‑ranking civil servants—were detained in connection with EU subsidy fraud targeting an innovation centre for start‑ups and scientific firms
  • The fraud allegedly involves €13.5 million (about CZK 340 million) obtained through false submissions to the Industry Ministry
  • Thirteen searches were executed, resulting in seizure of a building and around €2 million in frozen bank assets

Frequently Asked Questions

Who was detained in the Czech EU subsidy fraud case?
Seven people, including two high-ranking Industry Ministry officials and a top Building Authority official, were detained.
How much money was involved in the suspected subsidy fraud?
The suspects allegedly attempted to illegally obtain 13.5 million euros, equal to about 340 million crowns.
What was the purpose of the EU subsidies in question?
The funds were meant for developing an innovation centre for housing start-ups and scientific firms or projects.
What actions did the Czech authorities take during the investigation?
Czech police conducted 13 searches, seizing a building and 2 million euros in bank accounts.
Which organization is overseeing the investigation?
The investigation is being led by the European Public Prosecutor's Office (EPPO).

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