Czech PM calling National Security Council meeting over suspect bitcoin transaction
Under fire over a bitcoin scandal that has shaken the Czech government in its foundations, Prime Minister Petr Fiala on Tuesday announced that he was calling a meeting of the National Security Council and wanted the country’s intelligence services to investigate whether the state could have been abused by the criminal underworld for money-laundering.
A report by Deník N that the Czech Justice Ministry had accepted a bitcoin donation worth one billion crowns from a man convicted of drug trafficking, embezzlement, and illegal possession of weapons exploded like a bombshell on the Czech political scene last week. Within hours Justice Minister Pavel Blazek, from the ruling Civic Democrats, resigned from office and reporters dogged cabinet ministers to find out who knew about the transaction and how much.
On Monday Prime Minister Petr Fiala and Finance Minister Zbyněk Stanjura both admitted that they had been informed about the transaction, but had relied on the justice ministry to make sure the donation was above-board.
Less than 24 hours later, the prime minister said the case merited a deeper investigation by the country’s intelligence services.
"I want to say that I fully understand public concern regarding the possibility that the Czech state may have been abused through the Ministry of Justice by the criminal underworld. I am calling a meeting of the National Security Council to investigate the matter and I want the country’s intelligence services to get to the bottom of it, so that such a thing could never happen again –if it did happen.“
The prime minister also lashed out at the opposition ANO and Freedom and Direct Democracy parties, accusing his political rivals of mudslinging ahead of the autumn general elections.
“I want to reject speculation spread by the opposition parties and unfortunately, also some media outlets in this country, that the Czech government and specifically the Civic Democratic Party are helping the criminal underworld and laundering dirty money in exchange for financial gain. That is a blatant lie for which you have no proof. Don't say it, don't spread it, don't lie.”
However, the opposition is calling for the government’s resignation, accusing it of either assisting money-laundering for profit or serving as “a useful idiot” to an ex-convict who wanted to open a virtual account containing billions of crowns that may likely have come from profits made on an illegal Darknet market. The matter is to be debated at an extraordinary session of the lower house this Thursday.
On thin ice, the Civic Democrats’ coalition partners have scrambled to distance themselves from the scandal, stressing that their ministers had no knowledge of the transaction and supporting calls for a thorough investigation. The leaderships of the other parties in the ruling coalition are meeting to debate their future course of action. None have indicated that they might consider walking out of the government over the scandal. But all are taking steps to protect their reputation and possibly secure the votes of disgruntled Civic Democrat supporters in the upcoming general elections.
Meanwhile, President Petr Pavel, who reacted to the crisis from a summit of the B9 and Nordic countries in Vilnius, said the government's resignation would not benefit anyone four months ahead of the autumn general elections, but he also stressed that the dubious transaction must be thoroughly investigated.
