published: 17.09.2013, 13:40 | updated: 17.09.2013 13:44:14
Prague - Detectives are investigating the circumstances of the financing of the ongoing construction of the Blanka tunnel complex in Prague on suspicion of two crimes involving billions of crowns, it ensues from the documents CTK has at its disposal.
The construction, that many say is overpriced, has already cost Prague 27 billion crowns and the final figure is to reach 36 billion crowns.
The opening of Blanka that is part of the Prague city ring is planned for the spring next year.
Detectives from the Ceske Budejovice unit of the Squad for Uncovering Organised Crime (UOOZ) are looking into the suspicion of the criminal offences of insider trading and breach of trust.
The investigation is related to the Prague Council´s resolution of last December in which the councillors approved the "categorisation" of invoices with which they wanted to settle the city´s debts towards the builders.
Prague has had problems paying invoices for the works done for more than one year. The current Prague Town Hall says the situation arises from that politicians devolved a big part of powers on clerks in the past.
Mayor Tomas Hudecek (TOP 09) said previously the town councillors were "shunning" responsibility for certain decisions.
Construction works continued without the responsible city bodies approving investments worth billions of crowns.
TOP 09 says the city is "balancing" on the edge of public procurement law in connection with orders for Blanka.
Prague is gradually repaying the 1.8 billion crown debt it owes to the Metrostav building company and it should repay a major part of the debt by the year´s end. Even then it will still have to pay invoices for several hundreds of millions of crowns.
The construction of Blanka started in 2007. It was sanctioned by then Prague management headed by former mayor Pavel Bem (Civic Democrats, ODS).
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