E&Y audit exposes Langer’s dirty laundry deal

An audit of Interior Ministry spending reveals ex-minister Ivan Langer secured contract for friend’s unqualified firm to clean police uniforms

The Ministry of Interior’s services management department (ZSMV) decided in March 2008 that it would no longer wash police uniforms and in the same month outsourced the dirty work to the firm Dočista, without issuing a tender, according to the server iHNed.cz.

The iHNed.cz server ascertained that at the time Dočista belonged to Tomáš Paclík — who has close ties to Ivan Langer (Civic Democrats, ODS), the former interior minister now said to be in charge of external-budget financing of the center-right party. Since 2000, Paclík, who still has a stake in Dočista, has rented part of Langer’s house in Olomouc, where he has a tax and accountancy office; the two men have also been photographed together on several occasions at society events.      

The irregular contract with Dočista — which prior to receiving the contract had no experience in the laundry business — was exposed during a recently completed audit of the Interior Ministry’s accounts by the firm Ernst & Young. Since receiving the contract fewer than three years ago, Dočista has billed the Interior Ministry for Kč 54 million. Dočista had no experience or equipment when Langer had the contract drawn up, Ernst & Young said.

“The contract was concluded with an entity without relevant references, which lacked [the necessary] business license when contract was drawn up, and which did not have the necessary equipment,” the server quotes the Ernst &Young report as saying. Additionally, the firm Dočista reportedly purchased laundry equipment at a discount rate. In the contract, Paclík’s firm was to pay Kč 9.4 million for the equipment, but that price was cut by 50 percent, iHNed.cz reported.

The former director of the Interior Ministry’s services department, Oldřich Vytiska, confirmed that the laundry equipment was sold and laundry services outsourced upon Langer’s orders.

Dočista also concluded an agreement to rent the interior ministry’s laundry premises in Kolín, Central Bohemia, for Kč 5,000 per month; the iHNed.cz server quoted a property evaluator as saying the 5,000 square meter laundry has a market rental value of Kč 232,000 a month.