Czech MEP turns to EC over OKD privatisation


10.04.2014 11:50

Brussels - The European Commission (EC) will discuss the privatisation of the Czech OKD mining company on the initiative of Czech MEP Hynek Fajmon (Civic Democrats, ODS) who wants it to say whether the deal was in harmony with EU law and whether it amounted to unlawful state aid.


Hynek Fajmon byl zvolen poslancem Evropského parlamentu za ODS. ČTK ČTK

The state sold its minority stake in OKD for lower than the market price in 2004, Fajmon pointed out.

He also asked the EC to say whether it enquired into the case before and with what result.

The EC should answer his questions within six weeks.

The EC dealt with the OKD deal several years ago, first at the request of the Penta Finance company from 2005 and then at the request of the BYTYOKD.CZ flat tenants´ association from 2008.

In 2011, the EC concluded that unlawful state aid was not involved and that the purchasing price was not below the market price.

"I know that the EC enquired into the OKD sale once before. However, it turned out that it worked with the arguments given to it by the buyer´s lawyers, instead of using documents from the Czech Finance Ministry," Fajmon said.

According to the latest media assertion, the OKD deal strikingly harmed the Czech Republic.

"The purchasing price did not reflect the prices of OKD´s subsidiaries, which were not assessed by a court expert at all," Fajmon said, adding that the final price was lower than the real market price.

Tension in the present governing coalition intensified recently when Finance Minister and junior ruling ANO chairman Andrej Babis said Prime Minister Bohuslav Sobotka (Social Democrats, CSSD) is politically responsible for the possibly unfavourable sale of the state´s stake in OKD as he was finance minister at the time.

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