Monday, 28 November 2016 ‘Mad interest Issue 141 l newsstand price CZK 24/¤ 1 l www.e15.cz 141 rates = WW III’ 0 Planet has accumulated such debts 40 that no economic model exists to deal with them, warns Czech senator FACE TO FACE pages 10–11 771803 45431 9 Wisecracks of old Book explores coded humour amid post-1968 communist society facebook.com/ FEATURE pages 12–13 e15weekly Bureaucracy triumphs Set aside 23 billion crowns of EU funds, add billions in state capital, and direct it at an interior ministry Smart Administration project to tackle red tape. What do you get? An utter shambles, judging by an assessment Jan Pavec even years of work and billi- ons of crowns were thrown at excess bureaucracy entangled within the state administration, Sbut it was not enough to make any real headway. That’s one conclusion drawn from an evaluation of the government’s Smart Administration strategy, pub- lished by the interior ministry. What’s more, although it was the government that two years ago requested the com- piling of the assessment, E15’s infor- mation is that the document, released in August, has not made it through to government office. The battle – or lack of a battle – against bureaucracy has been looked into by the Supreme Audit Office [NKÚ], which as early as last year filed a criminal complaint. “In our opinion this strategy has simply failed, it was systematically set up badly,” said Olga Málková, spokesperson for the NKÚ. The NKÚ’s verification officials dis- covered evidence of alleged violations in legal duties in the management of third-party assets, in adhering to the rules of sound economic competition and in protecting the European Union’s financial interests from damage. Continues on page 2 EW16112801A1.indd 1 25.11.2016 12:32:43 2/3 news ‘Mr. Praguer’s’ Prague PM bets farm on existing Financier Karel Pražák is investing more and more in real estate minister of agriculture REAL ESTATE a Socialist-era building which metre development already Daniel Novák later ended up as an abandoned exists. Winterstein anticipa- Dušan Kütner casino. ted that the investment would aprain Holding and its “We sold this piece of real amount to around EUR 40m. Greater efforts at protecting owner, the financier estate in a standard selection Further constructions are the Land Resources Fund, KKarel Pražák [the sur- procedure. There were many planned. increased support for crucial name translates as “Praguer”], interested bidders,” said Ta- “The original plan not only commodities, vigilance over the are a growing presence on mir Winterstein, owner of the counted with office-admini- quality of domestic foodstuffs the Prague property market. Lighthouse Group, which sold strative buildings and a ho- and preparations for the battle Pražák, a former colleague of Pražák the lucrative car park tel, but also with residential with climate change required, wealthiest Czech and investor by the O2 Arena at a price that buildings. We intend to stick in part, to ward off the threat Petr Kellner, has over a short has not been disclosed. Winter- with this plan in line with the of worsening drought impacts. time completed some major stein retained a minority stake standing permit volume. We’re Prime Minister Bohuslav So- real estate acquisitions. Most in the property. currently discussing the spe- botka offered these points as recently he acquired a large car Investment specialists cific shaping of the buildings just some of the highlights of park property situated right appraised Pražák’s acquisiti- with architects,” Pražák told Marian Jurečka’s three years as alongside Kellner’s O2 Arena on activities as well directed. E15 daily. agriculture minister for which in Prague 9’s Vysočany quar- “In the wider centre of Prague The Vysočany development he said there should be appre- ter. Housing worth billions of free land plots are insufficient- will liquidate a substantial ciation. crowns is to be constructed on ly available goods. Looking amount of parking places “The [agriculture] ministry the site. ahead these are very appealing used by visitors to the arena. has succeeded in fulfilling the Michael Tomeš Pražák has also been busy and strategic parcels of land “The O2 Arena makes use of major part of those things rela- making an acquisition at the in the vicinity of the metro,” its own extensive parking buil- ted to agriculture which are in top of Prague’s high-end sho- said Jan Hospodář, a partner in ding which will not be chan- Photo: the government programme,” pping boulevard, Pařížská, consulting firm 108 Investment ged at all by that project,” said New investment chapter. The former headquarters of the said Social Democrat Sobotka. across from the river Vltava. Advisory. Radek Stavěl, spokesman for Prague-based Socialist-era International Association of Students During the final year of the At one end of the avenue, oppo- The first move of Pražák Bestsport, through which Kell- stands on one of the most lucrative plots of land in the capital ruling coalition’s term of office, site the Hotel InterContinen- at his Vysočany site will be to ner’s PPF investment group the agriculture ministry is to tal and the Charles University build an office part for his pro- operates the entertainment of Pařížská. Having failed as ted to turn it into the Prague focus on completing its green Law Faculty, he snapped up the ject. It will adjoin Českomo- venue. a casino, the building later branch of London’s world- diesel support initiative for far- former HQ of the International ravská street. A construction No less intriguing is Pra- became the focus of an ambi- -famous luxury department mers, pushing through amen- Association of Students [MSS], permit for a 25,000-square žák’s acquisition at the end tious Italian owner who wan- store Harrods. ded laws covering winemakers and hunters and gamekeepers Bureaucracy triumphs Continued from page 2 the aims of launching appli- cations to support the legis- The claimed breaches were lative process and the public attributed to negligence. E15 database of Czech laws have also understands that even pri- foundered. Some success is or to the NKÚ involvement, found, however, when it comes police began probing the to the introduction of digital Smart Administration stra- administration (or “e-gover- tegy. The police declined to nment”), including databox comment on whether they had services, the Czech POINT got anywhere with the case. contact points and basic re- The interior ministry, mea- gisters. nwhile, is not yet able to clarify “It has been for many years how much of the CZK 23bn of the last substantial project in European funds, as well as the the field of the computerisa- billions of crowns of state bud- tion of public administration get capital, has been spent. Lo- which public institutions are ČTK oking at the strategy from all still faced with through to ČTK angles, the ministry’s evalua- today,” said former interior Photo: tion damns it as a pure failure. minister Ivan Langer, who Visualization: The main goals of improving launched Smart Administra- When Slavia score, listen for the roar in Shanghai quality of life for citizens and tion in 2007. “After the exit Next year brings the 125th anniversary of the Czech Republic’s second most successful football Wenceslas Square revamp edges that much nearer supporting Czech economic of our team, most of our su- club, Slavia Prague. Few of the founders of the club – Slavia was founded by students of medicine Years of painfully slow progress towards the transformation of the lower part of Prague’s Wenceslas growth by pushing up public ccessors devoted more energy in 1892, initially as a sports club focused on cycling – could have imagined that one day the “red Square have finally brought another milestone. Prague 1 zoning permission has been granted. administration efficiency have to demolishing things than to and whites” would be almost entirely owned by the Chinese. But with China’s CEFC having now However, a construction permit will be needed before the first shovel hits the earth. The start of not been met. creating things. The peak of bought honorary club president Jiří Šimáně’s 20-percent stake, held by through his Fly Sport the reconstruction has now been pencilled in for 2018. The square will be revived with new trees, Attempts at simplifying the inaction occurred during Investments, that is indeed the case. Shanghai-based CEFC now owns 99.964% of Sparta Prague’s benches and fountains between Můstek and the Vodičková thoroughfare. Around 200 million bureaucratic steps have not the past three years, when ab- great rival, with the rest in the hands of fans. The deal included the paying off of all loans which crowns will be sunk into the revamp even delivered the removal of solutely nothing was done,” Fly Sport Investments provided to Slavia superfluous regulations. While he added. EW16112802A1.indd 2 25.11.2016 12:41:06 news ‘Mr. Praguer’s’ Prague PM bets farm on existing Pavel Otto’s notebook Financier Karel Pražák is investing more and more in real estate minister of agriculture Dušan Kütner No party Greater efforts at protecting the Land Resources Fund, increased support for crucial poopers please commodities, vigilance over the quality of domestic foodstuffs Vlasta Parkanová, the their original charges were and preparations for the battle post-split Czech Repub- “filled with suppositions”. So with climate change required, lic’s first female minister no parties for anti-corruption in part, to ward off the threat (Justice and later Defence), activists. of worsening drought impacts. has celebrated her 65th Prime Minister Bohuslav So- birthday. Whether police and The above may be one rea- Michael Tomeš botka offered these points as state prosecutors stopped to son why a recent regular me- wish her a happy birthday, eting between PM Bohuslav just some of the highlights of Photo: Marian Jurečka’s three years as however, is another matter.