The Ministry of Local Development (MMR) in the Czech Republic has taken a drastic step by suspending the financing of projects from European grants allocated to regional hospitals. This decision follows the arrest of ten hospital managers on allegations of involvement in an organized criminal group. According to reports from Seznam News, the total funding put on hold amounts to a staggering 959 million crowns.

The arrests stem from suspicions that the detained hospital administrators played a role in an elaborate scheme involving the acceptance of bribes for the allocation of specific public contracts. The European Public Prosecutor’s Office (EPPO) disclosed that corruption suspicions extend to the procurement of medical materials for hospitals.

Investigations by the EPPO suggest that the criminal organization, operational since 2022, systematically manipulated public contracts for medical supplies to favor predetermined suppliers. Police documentation reveals that the financial damage inflicted on the European Union’s budget through corrupt practices in hospital material procurement amounts to nearly a million euros, equivalent to approximately 25 million crowns.

The implicated medical equipment procurement scheme encompassed a wide range of items crucial for hospital operations, including operating tables, laparoscopic and arthroscopic surgery devices, endoscopes, defibrillators, surgical drills, and ventilators. Suppliers allegedly had undue influence in shaping tender conditions through the public procurement management system, tailoring contracts to their advantage.

In response to these developments, the board of the regional health hospital in Ústí nad Labem swiftly dismissed director Peter Malý from his position on the day of the intervention. However, the Vysočina Region Council has opted not to dismiss Lukáš Velev, director of Jihlava Hospital. Governor Vítězslav Schrek emphasized that mere arrest does not warrant dismissal, indicating a cautious approach to personnel decisions amidst ongoing investigations.

The suspension of European grants to regional hospitals underscores the gravity of the situation and reflects the government’s commitment to addressing corruption in healthcare procurement. As legal proceedings unfold, authorities are expected to pursue accountability and implement measures to safeguard public funds and uphold integrity in healthcare services delivery.

Article by Prague Forum