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24.08.2012 12:56
Czech Secret Service Investigates State Energy Firms for Corruption
CEZ and a body in charge of strategic oil reserves are among the state companies accused of law breaking
AUTHOR: publics.bg


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The Czech secret service on Thursday accused state-owned companies of violating procurement laws and selling assets off cheap, saying such cases damaged state interests and could be corrupt.

The BIS counter-intelligence agency accused a number of firms, including the 70 percent state-owned energy giant CEZ, of circumventing the law.

The BIS said tenders for state contracts were often rigged, some contracts were awarded with no tenders at all and that personnel and strategy decisions in some firms were influenced by parties related to management.

"Some tenders in the energy sector had only a formal character, because its winner had been decided beforehand ... a procedure was being used allowing the law on public procurement to be circumvented," Reuters announced, quoting the report of the secret services.

It said CEZ had used a subsidiary to make orders directly in situations where CEZ itself would have had to hold a tender.

"The CEZ group has always fully met the requirements of the procurement law," CEZ spokeswoman Barbora Pulpanova said. Even at the subsidiary, all major market players were always asked for bids, she added.

The secret service said there was a long list of state firms which used opaque and non-standard practices, including a body in charge of strategic oil reserves.


TAGS: CEZ | oil | energy | investigation | corruption | public procurements | secret services | Czech republic 


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