The Prague Public Transit Company (DPP) is preparing for its initial audit specifically focused on contracts with Xanthus Servisní, a company that has faced criticism for overpriced information system screens purchased for bus stops and metro stations. The audit will extend to other contracts with Xanthus Servisní, for which the company received approximately 160 million Czech korun between 2019 and 2022.

Vít Hofman, spokesperson for the Prague City Council, announced that the council approved the necessary material for a cooperation agreement regarding the comprehensive audit during a meeting held on Monday. The resolution states that a contract will be signed with the German audit firm StoneTurn Group later this week.

The audits are being initiated by Audity Praha in connection with the corruption case referred to as “Dozimetr,” which involves allegations of organized corruption within the DPP.

As part of the audit, independent auditors will thoroughly examine Xanthus Servisní’s contractual documentation and written communication with DPP employees. The objective is to determine whether the contracts were economically beneficial and to investigate the reasons behind the conclusion of contractual agreements outside the standard tendering process. The audit is expected to be completed within three months from the signing of the contract.

Additional audits related to public procurement are also underway. The city administration is in the final stages of a tender for an audit focusing on the economic feasibility of the construction and revitalization of Palmovka and Nádraží Holešovice metro stations. Furthermore, an in-depth audit will investigate other contracts within Prague.

Tomáš Havel, the Director of the Legislative Department of the City Administration, emphasized that the comprehensive audit should incorporate the findings from these two specific audits.

Although the council approved the audits in June of the previous year, the process experienced delays due to difficulties in their initiation. Hana Kordová Marvanová, a Prague councilor from the Spolu party, expressed concerns about the audits in March, citing potential lack of cooperation from the transit company. However, Petr Witowski, CEO of the Prague Public Transit Company, refuted any claims of non-cooperation in relation to the audits associated with the Dozimetr case and Xanthus Servisní.

Article by Prague Forum