Wine boxes, Dozimetr or Stoka: how corruption works in the Czech Republic

What is corruption and what is the meaning of corruption

The question of “what is corruption” has not only a moral dimension, but above all a legal one. Simply put, corruption is the abuse of position or power to gain an undue advantage. This advantage does not have to be money. It can be a gift, a favour, a quid pro quo, influence, information, a job for a relative or even the promise of a future “reward”.

From a criminal law perspective, corruption is particularly important in that it undermines impartial decision-making by public officials and public institutions, fair competition and citizens’ trust in the state and the law.

A typical feature of corrupt behaviour is a quid pro quo relationship, even if it is not directly expressed. This is why corruption tends to be difficult to prove and often takes place covertly, through intermediaries or seemingly legal actions.

Corruption as a criminal offence under Czech law

The Czech Criminal Code criminalises corruption, in particular in the provisions on bribery (§ 331 to § 334 of the Criminal Code).

Accepting a bribe (§ 331)

A criminal offence is committed by a person who accepts, promises or asks for a bribe in connection with the procurement of a matter of general interest or in connection with business. It does not matter whether the offender is an official, a politician or a private person – the decisive factor is the connection with the activity in question.

Bribery (§ 332)

On the other side stands the one who gives, offers or promises the bribe. Thus, from a criminal point of view, it is not a “lesser evil” to be the one who gives the bribe. Both parties can be held liable.

Indirect bribery (§ 333)

The law also remembers situations where the bribe is not intended directly to the decision maker, but to someone who has influence on the decision. Typically, these are intermediaries, advisors or persons with informal influence.

What is a bribe

A bribe is any undue advantage to which the other party is not legally entitled and which is given or received in connection with a particular decision, action or influence. Most often people think of a bribe as money, but the law has a much broader understanding of the term. Bribes can also be gifts, services, favours, discounts, loans, as well as intangible benefits – for example, passing on confidential information, speeding up a procedure, “turning a blind eye”, influencing the outcome of a contract or promising a future advantage.

Importantly, it is not the amount or form of the bribe that matters, but its connection to the activity in question. Thus, even a seemingly minor consideration can be a bribe if it is intended to influence the decision or conduct of a person in a position of impartiality.

The broad definition of a bribe is the reason why people often get into trouble even in situations that do not appear to be “corrupt” at first sight, but from the point of view of criminal law may already fulfil the characteristics of bribery.

Clientelism: the grey area between immoral and criminal behaviour

Clientelism often appears alongside the concept of corruption. It is a system of interconnectedness, where benefits are granted on the basis of ‘acquaintanceship’, loyalty or membership of a particular group. Typical manifestations of clientelism are:

• the occupation of positions by one’s own people,
• contracts for related companies,
• exchanging political or personal support for benefits.

Clientelism in itself may not always be a criminal offence, but it very often creates an environment in which corruption occurs. When clientelistic relationships are linked to bribes, abuse of power or manipulation of public contracts, criminal liability may be involved.

Corruption in the Czech Republic: where do we stand?

When discussing corruption in the Czech Republic, the Corruption Perceptions Index (CPI), published annually by Transparency International, is often used as a benchmark. This index assesses the level of perception of corruption in the public sector on a scale of 0 to 100, where 0 indicates a very high level of corruption and 100 indicates a minimal level of corruption.

In the latest published assessment for 2024, the Czech Republic scored 56 out of 100 and ranked in the second half of the top 50 countries. In the long term, the Czech Republic is thus rather in the middle of the European and global rankings, well behind top-ranked countries such as Denmark, Finland or New Zealand, but ahead of countries with high levels of systemic corruption.

This result shows that corruption in the Czech Republic is not perceived as an exceptional excess of individuals, but as a long-term and structural problem that cannot be fundamentally improved. While some areas of public administration operate transparently, others remain problematic in terms of corruption risks.

Moreover, the experience of criminal practice and investigated cases confirms that corrupt behaviour is not limited to top politics or the civil service. In particular, it repeatedly occurs:

• in public procurement, where manipulation of tenders, commissions or the purposeful setting of conditions play a role,
• in the use of subsidies, including European funds, both at national and regional level,
• at municipal level, where decision-making is often concentrated in the hands of a small number of people,
• in business relations, for example in an attempt to gain an advantage over competitors or to speed up administrative processes.

Well-known cases of corruption in the Czech environment

Dozimetr case

The Dozimetr case is one of the biggest corruption cases in the Czech Republic in recent years and concerns alleged influence on public procurement by the Prague Transport Company (DPP) and other institutions. According to the indictment, a group of lobbyists, politicians and businessmen manipulated tenders through appointed managers in the DPP management and collected bribes in return. The main actors are Michal Redl, a businessman from Zlín, who is described as the leader of the group, and Petr Hlubuček, a former deputy mayor of Prague (formerly of STAN), who, according to the indictment, helped promote the group. The defendants also include the former head of the DPP’s legal department , Dalibor Kučera, and other businessmen.

According to the indictment, the defendants were supposed to influence contracts worth hundreds of millions of crowns. Some of the defendants, such as businessman Pavel Kos, have pleaded guilty to part of the charges and may receive reduced sentences as a result. Meanwhile, the main trial is underway at the District Court for Prague 9, and the main players (including Redl and Hlubuček) face heavy prison sentences if the court finds the charges proven.

In addition, detectives also accused former DPP chief Martin Dvořák of accepting a bribe in connection with the case.

Stoka case (Brno-střed)

The Stoka case concerns the manipulation of public contracts at the Brno-střed City Hall. Police initially accused dozens of persons and companies of influencing contracts and corruption. The main figure was Jiří Švachula, a former deputy mayor of Brno-central for the ANO movement, who was originally given a several-year unconditional sentence for his participation in an alleged organised group and corrupt practices in public procurement.

However, the verdict was overturned by the High Court in Olomouc, which pointed to procedural errors and the case was returned for a new hearing. In response, Švachula and the other defendants decided to enter into plea and sentence agreements with the prosecutor, the amount of which is still subject to court approval. The case involves multiple defendants and companies.

According to the prosecutor, the group collected bribes of approximately 10% of the contract price and the manipulated contracts were to exceed CZK 260 million.

The David Rath case

One of the most notorious corruption cases in modern Czech history revolves around David Rath, the former governor of the Central Bohemian Region. Rath was accused of accepting bribes in connection with public contracts for medical equipment in 2012. A well-known symbol of the case was a photograph of a “wine box” full of money that police recovered during a raid on his office. Rath was finally sentenced to seven years in prison. He was released on parole after serving half of his sentence.

Nagyová case – “trafiky”

The case of the so-called “trafiks” for ODS MPs is linked to the events surrounding Petr Nečas, the former Prime Minister of the Czech Republic (ODS), and his then head of cabinet Jana Nečasová (formerly Nagyová). According to the indictment, the trio offered the MPs lucrative positions in state or semi-state companies in exchange for their resignation and support for government bills – which the prosecutor interpreted as bribery.

In December 2023, the Court of Appeal upheld the sentences imposed (probation and a fine) and the decision is final. Nečas subsequently unsuccessfully defended himself with extraordinary appeals.

This case contributed significantly to the fall of the Petr Nečas government in 2013 and is one of the most notorious cases where political corruption intersected with the practice of lawmaking and government policy.

How to tell if it may already be a crime

Do you have the feeling that something unclean is happening around you, but you are not sure if it is already corruption or “just” unethical behaviour? Early recognition of the warning signs can make the difference between staying safe and inadvertently getting into trouble.

Be especially alert if you encounter any of the following:

• Someone wants a “commission,” a gift, or a quid pro quo in exchange for a decision, a permit, a contract, or an expedited process. And beware – it’s not just about money. Expensive gifts, services or benefits to you or your loved ones can also be a problem.
• You are being pressured to choose a particular supplier even though there is no objective or professional reason to do so. A typical warning is the argument “that’s the way they want it from above” or “that’s the way things work around here”.
• You are offered benefits outside the official procedures, for example ‘on the side’, without contracts, without records or with the promise that ‘it will be sorted out later’.
• Someone asks you for confidentiality or to circumvent the normal rules, for example by skipping checks, speeding up approval without supporting documents or modifying documentation retrospectively.
• Intermediaries with unclear roles enter the process, who “just broker the deal” but are really there to cover up the real actors or the flow of money.

If you find yourself in such a situation, do not deal with it alone and expect the problem to “melt away”. Even people who originally thought of themselves as victims of the system can find themselves in the position of the accused if they make a wrong move. Early consultation with an attorney can help you understand where the boundaries of the law are, how to protect yourself, and how to proceed so that you do not put yourself at criminal risk.

Summary

Corruption is a serious offence that involves the abuse of position or power to gain an undue advantage, and a bribe can be anything from money to gifts, favours, information or a ‘sop’. The Czech Criminal Code punishes both the acceptance and the provision of bribes, as well as indirect bribery, and the boundaries of criminality often overlap with phenomena such as clientelism. Corruption is not a marginal problem in the Czech Republic, as confirmed by the Corruption Perception Index (CPI), where the Czech Republic has long been in the middle of the ranking, and practical experience shows that corrupt behaviour occurs mainly in public procurement, in the use of subsidies, at the municipal level and in business relations. Well-known cases such as Dozimetr, Stoka, the case of David Rath or the so-called “trafiky” around the government of Petr Nečas illustrate that corruption can be systemic and affect politicians and officials as well as entrepreneurs. It is precisely because of the broad definition of corruption offences that people can get into trouble even in situations that do not seem illegal at first sight, and therefore it is crucial to seek professional legal assistance in time if in doubt.