Czech Republic considers complaint over MUS coal mining firm privatization

The Czech Republic is considering filing a complaint against a Bellinzona court’s verdict over 1999 privatization of the MUS coal mining company, the Czech newswire Ceskenoviny reported, June 15.

Although the Swiss court admitted that the Czech state, as the MUS original owner, had suffered damages caused by MUS former managers controlling the company, it did not recognize any compensation. Should the Czech Republic fail with its complaint, it may negotiate a part of the money seized in the case.

“This means that the countries agree to divide the confiscated money between each other,” a source from the civil service stated, as cited by the newswire. “All Swiss cantons would have to give consent to it, however.”

In October 2013, the Swiss court in Bellinzona imposed prison sentences for fraud and money laundering on five former managers of MUS, including Jiri D. (46 months imprisonment), Antonin K. (52 months), Maker C. (48 months), Petr K. (16 months) and Oldrich K. (37 months). The verdict is not valid yet and the managers that pleaded innocent, plan to appeal to the Federal Supreme Court.

The MUS coal mining company’s case involves frauds of MUS shares, which the managers were buying for the company’s money. According to the indictment, the managers caused damage to the Czech state by buying the state’s steak in MUS for an inappropriately low sum of CZJ 650 mln in 1999.