State attorney halts prosecution of PM Babis in Capi hnizdo case

The state attorney halted the prosecution of Czech Prime Minister Andrej Babis (ANO) and other persons in the Capi hnizdo case of a suspected EU subsidy fraud today, Prague Municipal State Attorney's Office (MSZ) has announced on its website. MSZ chief attorney Martin Erazim said the Capi hnizdo case meant a complex legal question of the way to interpret the term "small and medium-sized company", which is a category of firms that were eligible for the 50-million-crown EU subsidy that Farma Capi hnizdo obtained in mid-2008. "The accused persons, who applied for the subsidy at the time, presented Farma Capi hnizdo as a small or a medium-sized firm in their affidavit. The law enforcement bodies considered this assertion untrue and therefore criminal prosecution was launched," Erazim said.