The Prague Metropolitan Court has taken a significant step in the high-profile Capi Hnizdo case, involving alleged subsidy fraud linked to former Czech Prime Minister Andrej Babis and his ex-adviser Jana Nagyova. The court has scheduled a new hearing for 14-15 February 2024, following the overturning of their acquittal verdict by the Prague High Court in September.

The case revolves around a CZK 50 million subsidy for the construction of Capi Hnizdo, a multifunctional congress center located south of Prague. Babis and Nagyova were acquitted in January, but the High Court found flaws in the verdict that necessitated further proceedings.

The court spokesperson, Adam Wenig, stated that the upcoming trial would involve two expert witnesses and the examination of documentary evidence. The decision aligns with the Prague High Court’s directive to address deficiencies in the previous trial’s handling of evidence.

Jan Sott, the head of the Municipal Court’s panel of judges, has sought proposals for additional evidence from both the prosecution and defense. Currently, no further evidence has been put forward, and the defendants have indicated that their decision to testify will depend on the course of the main trial.

The High Court’s critique in September highlighted flaws in the lower court’s handling of evidence, describing it as “unconvincing, inconsistent, and incomplete.” This led to the order for the Municipal Court to supplement the evidence and reconsider its decision.

The indictment alleges that Babis orchestrated the separation of Farma Capi Hnizdo from his Agrofert holding and sold shares to family members before entering politics. Prosecutors claim this move was aimed at meeting the criteria for a CZK 50 million subsidy intended for small and medium-sized enterprises. Nagyova, charged with subsidy fraud and damaging the EU’s financial interests, is accused of successfully applying for the subsidy, while Babis faces charges of aiding and abetting subsidy fraud.

Despite the legal complexities, both defendants have consistently denied any wrongdoing. The upcoming trial is expected to provide a thorough examination of the evidence and address the concerns raised by the higher court, shedding light on a case that has captured public attention and raised questions about political and financial impropriety.

Article by Prague Forum