Mostecká uhelná privatization case heads to High Court appeal

The legal proceedings regarding the privatization of Mostecká uhelná, a major mining company, are approaching a final stage. The Prague High Court is set to review an appeal against a non-final verdict that imposed unconditional prison sentences on former managers for the alleged fraudulent takeover and tunneling of the state-owned giant during the 1990s.

Antonio Koláček, identified by prosecutors as the central figure, faces a sentence of 7.5 years. The prosecution alleges that Koláček and others siphoned money from the state company to purchase its shares, eventually selling the remaining state interest for billions. The defense maintains innocence, citing new evidence regarding potential manipulation of digital materials provided by Swiss prosecutors. Specifically, experts claim metadata on a DVD containing evidence was altered using Photoshop, making the materials unreliable for criminal proceedings.

Legal analysis highlights that the privatization was governed by the ‘Act on Large Privatization’ (Law No. 92/1991 Coll.), which acted as a lex specialis. This specialized legal framework took precedence over general commercial and civil codes regarding contract processes, property transfers, and liability, a principle repeatedly upheld by the Supreme Court.