The construction company Metrostav is looking for ways to lessen the impact of disastrous court ruling from last week which banned it from taking part in publicly funded projects for the next six years. With billions at stake, its future is now threatened by its role in misusing European funds during the reconstruction of Hotel Bohemia Chrudim. The investor and Metrostav conspired to claim compensation for work that had never been done and that the two sides divided up the public funds between themselves. Metrostav’s regional director and construction foreman were named in the court case. The company, which is the largest constractor in the country, has appealed the verdict, claiming the finding could be fatal. Hospodarske noviny reports that Metrostav won’t reveal how much of its business comes from publicly funded projects. As a group, Metrostav made CZK 41.8 billion in 2019, of which more than half of it came from Metrostav subsidiaries. Hospodarske noviny writes that management is looking for ways to push more of these types of projects into the hands of subsidiaries which would still be eligible.
