Czech state ordered to pay 35 million CZK to Neograph founder

The Prague Municipal Court has issued a final ruling ordering the Czech state to pay approximately 35 million CZK in damages to Vladimír Sitt | starší, the former head of the Neograph paper mill. The court rejected appeals from both Sitt and the Office for Government Representation in Property Affairs.

The dispute, which has spanned 15 years, centers on the state's handling of Sitt's shares during a criminal investigation. The court concluded that the state caused financial damage by seizing his shares and failing to properly manage his voting rights during general meetings, which led to a decrease in the value of his business interest and allowed others to take control of the company.

Sitt was previously a key witness in the 'ticket scandal' (jízdenková kauza) and had faced criminal charges regarding the alleged tunneling of Neograph. However, he was ultimately acquitted. The current compensation follows previous smaller payments made by the Ministry of Justice for costs related to his defense and the disproportionate length of the legal proceedings.