Prague 5 has cancelled a “disadvantageous” contract with a Prague electricity distribution company signed by a former mayor of the district who went on to become the company’s deputy board chairman, the news server Novinky.cz reported on Wednesday.
Pražská energetika (PRE), which is primarily a supplier of electricity, had provided computer equipment to Prague 5 City Hall since 2005, under a contract extended by Milan Jančík (Civic Democrats, ODS), the district’s mayor from 2002 to 2010, shortly before he left office.
“Negotiations [to cancel the contract] lasted a year and a half, and it was not easy,” current Prague 5 mayor Radek Klíma said, as cited by the server, noting that the district did not have to pay a penalty for withdrawing before the contract’s expiry date.
PRE has received some Kč 170 million of equipment to date under the arrangement. The city administration must still pay off the leasing on the hardware.
The Czech anti-corruption police (ÚOKFK) in March filed a third set of criminal charges against Jančík over the transfer of claims on outstanding rents from a contract he signed when in office — without clearing the deal with the city council, and with a firm whose beneficial owners cannot be traced.
Jančík is suspected of having improperly concluded an agreement with Agentura Praha 5, which has so-called bearer stock that allows the true owners to remain anonymous, in order to enrich himself.