Czech Republic receives parts of MUS verdict from Switzerland

The Czech Republic received the key parts of the Swiss court verdict on the fraud case of privatization of Czech MUS coal mining company from 1999, the Czech newswire Ceskenoviny reported, June 21.

“We´ve been analyzing the documents for the moment,” said Marek Zeman, a spokesperson of the Czech Finance Ministry, as cited by the newswire. “Of course, we are still considering taking further steps.”

The documents are believed to help in regain a part of CZK 14 bln frozen on Swiss accounts of the former fraudulent MUS managers accused in the case.

The state is not disclosing any details regarding whether it will try to regain part of the ceased in the case CZK 14 bln as a compensation for fraudulent privatization of MUS coal mine.

“The state would not disclose details of the planned operation – it wants to use chances the Swiss legal order offers and also file new actions with Swiss civil courts,” said Deputy Justice Minister Robert Pelikan, who headed the Czech Finance Ministry’s legislative section until two weeks ago, as cited by the newswire. “On the optimal case, it could take up to two years [to see Prague’s efforts met].”

Petra Sereda, a state attorney advised, however, that the state could also cease the former MUS managers’ properties worth more than CZK 1 bln located in the Czech Republic.

“We believe there are proceeds from criminal activities, which can possibly be confiscated,” stated Sereda, as cited by the newswire.

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.

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.