Czech Labour Office Files Criminal Complaints Over Suspected Abuse of Solidarity Subsidy for Accommodating Refugees

The Czech Labour Office has filed around 20 criminal complaints related to suspected abuse of the “solidarity subsidy” paid by the state to those providing free accommodation to refugees from Ukraine. Karel Trpkos, the IT section director at the Labour Ministry, said that no significant or widespread abuse of the subsidy system had been detected, and the number of rejected applications for the subsidy had not increased significantly due to checks. The subsidy is paid to people who offer free accommodation to refugees in their homes or vacant flats for at least 16 consecutive days per month.

Trade unions recently criticised the digitised subsidy system, alleging that there was insufficient control over the process, leading to suspected abuse. The Labour Office paid out over CZK 600,000 to a group of applicants with a single common account, and the ministry suspended the payment of these subsidies, according to the Hospodarske noviny newspaper.

Trpkos stated that the labour offices halted the assessment and approval of applications for this subsidy after the information came to light. He also launched a reassessment of applications in early March. Trpkos estimated that payments to fraudulent applicants amounted to a few million crowns. However, the checks did not reveal massive abuse; rather, there were problems with the registration of residence by some refugees, complicating the payment of the subsidy, affecting up to one-fifth of the applications.

The subsidy paid to those accommodating refugees in vacant flats is CZK 5,000 per refugee, while for those accommodating refugees at home, the subsidy is CZK 3,000 per person per month, up to a maximum of CZK 9,000. In February, the authorities paid the subsidy to 23,100 households, spending a total of CZK 208.7 million. The average subsidy was CZK 9,032. From last spring to the end of February, the state paid out over CZK 2 billion in subsidies. The solidarity subsidy will be paid until the end of June, with new rules to be introduced as of July.

In conclusion, the suspected abuse of the solidarity subsidy paid to those providing free accommodation to refugees from Ukraine has led to the filing of about 20 criminal complaints. While the checks did not reveal any massive abuse, problems with the registration of residence by some refugees have complicated the payment of the subsidy, affecting up to one-fifth of the applications. The subsidy system paid out over CZK 2 billion from last spring to the end of February, and it will be paid until the end of June, with new rules to be introduced as of July.

Article by Prague Forum

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