The distribution of EU funds in the Czech Republic is under scrutiny again. Deloitte Advisory has discovered in an recent audit that the distribution of the European resources in the Ústí and Karlovy Vary regions does not meet the EU criteria, as it is fully controlled by the local political representation. The EU is warning it will refuse to foot the bill in case the subsidies were granted incorrectly. The program called Northwest, through which Ústí and Karlovy Vary regions can tap CZK 20bn from the European money, could be cancelled. Deloitte Advisory auditors claim that 34 of 35 programs they checked were not in compliance with European regulations. This provoked a negative reaction from the MP Jiří Šulc who is in charge of the Northwest program, who argues the Deloitte findings are misleading and that they harm the reputation of the Czech Republic.
