Business briefs

Cabinet rejects Civic Democrats' proposal for 15 pct corporate tax rate; Mittal Steel, blocked from Vitkovice tender, threatens to renew claims against the steelworks, launch arbitration against the state; Ireland's Markland has bought Kotva; IT Minister may face charges over establishment of private company Testcom Servis; Czech breweries, malt houses, post record export sales

Cabinet rejects Civic Democrats' proposal for 15 pct corporate tax rate

The Cabinet has rejected a proposal by the opposition Civic Democrats that would have eliminated certain investment incentives while instituting a 15 percent corporate tax rate. The Minister of Industry and Trade, Milan Urban, has argued that it is a naive economic proposal given the need for fiscal restraint. The Civic Democrats, however, appear keen on submitting the bill to Parliament.

Mittal Steel, blocked from Vitkovice tender, threatens to renew claims against the steelworks, launch arbitration against the state

Mittal Steel, which this week withdrew its 350 million crown lawsuit against the state with regard to pig-iron prices, will not be allowed to submit a bid for the privatization of Vitkovice Steel. The state still has a 1 billion crown claim against a subsidiary of Mittal, and a condition of the tender is that bidders must have no unresolved disputes with the Czech state. Mittal Steel has said that it will complain to the European Commission, launch arbitration proceedings, and petition the Czech courts to block the privatization. The company also threatened to renew its claim against Vitkovice Steel/Osinek for deliveries of pig iron, a claim which Mittal had withdrawn in an effort to qualify for the tender.

Ireland's Markland has bought Kotva

Kotva

The Irish investment and development company Markland has bought Kotva — the popular Prague department store built under Communism in 1975 — for some $67 million dollars. Markland representatives said they will work to raise consumer interest to pre-1989 levels, when Kotva was Czechoslovakia's most visited shopping centre.

IT Minister may face charges over establishment of private company Testcom Servis

Minister of Information Technology Vladimir Mlynar, photo: CTK

The Minister of Information Technology, Vladimir Mlynar, may face charges of misuse of confidential information and property in connection with his establishing a private company that handled some aspects of government work. The State Attorney's Office in Prague has reportedly asked the police to bring charges against Mlynar by April 5, for having transferred state funds to the private company Testcom Servis, which he founded along with a former director of the Czech public television network. The company in question administers the Internet server of the civil service. Its founding was approved by the commercial courts, which Minister Mlynar — declining to comment in detail until official charges are made — said showed that he had acted in good faith. He said that he expected the "misunderstanding" would soon be resolved.

Czech breweries, malt houses, post record export sales

Czech breweries exported a record 2.64 million hectolitres of beer last year, up nearly 25 percent from 2003, according to the Czech Association of Breweries and Malt Houses. Over 14 percent of domestic beer output was sold abroad, said association chairman Jan Vesely. He said that Czech malt houses also had a good year in terms of exports, selling 28 percent more than in 2003.