Company and its executive director convicted of subsidy fraud in dust reduction project
On Wednesday, 24 September 2025, a company and its Executive Director were convicted of fraudulently obtaining approximately EUR 220,000 (CZK 5.5 million) from EU funds for a dust reduction project. The verdict follows an investigation conducted by the European Public Prosecutor’s Office (EPPO) in Zlín.
The defendants submitted false information in their grant application for the purchase of a dust-reducing street sweeper, financed by the European Regional Development Fund (ERDF) under the Operational Programme Environment 2014–2020. The false information concerned the size of the company’s premises, previous levels of particulate matter emissions (i.e. airborne solid particles such as dust or soot affecting air quality), and the presence of bulk materials on site. Furthermore, the sweeper purchased did not match the project specifications and was used for other purposes and at a different location.
The manager was sentenced to a pecuniary penalty of €120 000 (CZK 3 000 000) and prohibition of dealing with subsidy bodies and participating in subsidy procedures in any capacity for a period of four years (except agriculture subsidies). The company was sentenced to a pecuniary penalty of €120 000 (CZK 3 000 000) and a prohibition to receive grants and subsidies for five years.
The Executive Director expressed remorse for the unlawful conduct and repaid the damage in full to the Ministry of the Environment of the Czech Republic. In addition, the company returned two other EU grants amounting to EUR 360,000, following an internal audit carried out during the investigation.
The conviction was the result of a plea agreement, as the defendants admitted to all charges. The agreement was approved by a judge of the Regional Court in Ostrava, Olomouc branch.
The case was initiated in April 2024 by the Supreme Audit Office, which submitted a report to the European Public Prosecutor's Office (EPPO). The investigation also involved the Czech Police – Regional Police Directorate of the Olomouc Region in Olomouc.
The European Public Prosecutor’s Office (EPPO) is an independent body of the European Union responsible for investigating, prosecuting and bringing to judgment crimes affecting the EU’s financial interests.
Communication Department
Supreme Audit Office