Police investigate another suspicious Prague IT project


05.02.2014 13:21

Prague - The anti-corruption police are investigating another problematic IT project of the Prague City Hall, its contracts with the Gordic firm on a financial system worth over one billion crowns, according to the material CTK has at its disposal.


Policie, policisté, policejní zásah, policejní vůz/automobil - ilustrační foto. ČTK Krumphanzl Michal

Last week detectives took all documents concerning the case from the Prague City Hall, including the contracts signed with Gordic since 1992.

According to some sources, the project costs may amount up to 2.65 billion crowns.

The current Prague management must cope with problems caused by disadvantageous contracts worth billions of crowns from the era of Pavel Bem (Civic Democrats, ODS), Prague mayor in 2004-2008.

Prague councillors, including former mayor Bohuslav Svoboda (ODS), are prosecuted in another case, the overpriced Opencard smart card for Praguers.

They are also questioned over the construction of the Blanka road tunnel which has cost several billion crowns so far but is still far from being completed.

Gordic was in charge of the accounting of the City Hall, Prague districts, the municipal police and 800 subsidised organisations. Besides, it is the only owner of the copyright for the system.

The contract between Gordic and Prague expired at the end of last year.

First deputy mayor Jiri Vavra (TOP 09) said the city would face an economic collapse without the contract. At the same time, its extension is controversial, similarly like in the Opencard case, in which the councillors might be charge with repeatedly placing the order for the Opencard system with the Haguess company again.

Despite it, Prague councillors for TOP 09 intend to extend the contract with Gordic by a year to secure accounting services until a new operator is selected in a public tender. The winner will receive a four-year contract worth 600 million crowns.

Prague might thereby give up a one-billion-crown project but at the same time it would withdraw from disadvantageous contract conditions. However, it will take several months to launch the tender.

Apart from accounting, Gordic has been administering debts, contracts, orders as well as welfare payments and other key financial services on behalf of Prague for 20 years, the firm writes on its website.

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