Czech Supreme Audit Office finds 83 million CZK cost due to ministry conflict of interest

The Supreme Audit Office (NKÚ) has issued a draft protocol criticizing the Czech Ministry of Labour and Social Affairs for a conflict of interest involving Alexandra Semancová, a former advisor to Minister Aleš Juchelka. According to the audit, Semancová oversaw the allocation of subsidies while her private firm, Siptrade, simultaneously prepared subsidy applications for clients for a fee.

This conflict of interest has reportedly caused unexpected costs for the state budget totaling approximately 83 million CZK. The NKÚ noted that at least three projects under the National Recovery Plan (NPO) cannot be funded by EU money due to this issue, meaning the state must cover these costs directly. The ministry has already paid out nearly 50 million CZK to Semancová’s clients.

While Minister Juchelka has maintained that ‘no damage occurred,’ the NKÚ highlights that the shift of funding to the state budget lacks a clear legal basis and constitutes a breach of budgetary discipline. The ministry has also faced criticism for its previous dismissal of media reports regarding the matter.