In this week's Business News: The Czech government has announced a tender for software worth 1.5 billion crowns; safety inspectors are to begin checking Asian restaurants around the country, making sure that they are not using Chinese milk; a fraud case brought against the state-owned energy company Čepro by the Czech High State Attorney's Office has been halted; new figures from the Czech Trade and Industry Ministry suggest that sales of Czech-made musical instruments have fallen sharply; in a surprise move, a gas-tax reduction bill proposed by the opposition Social Democrats has passed its first reading in Parliament and despite continuing unrest in the global financial markets, three Czech companies are to sell shares on the Polish stock market.
Government goes Microsoft
Photo: archive of Radio Prague
The Czech government has announced a tender for software worth 1.5 billion crowns. According to reports, the software giant Microsoft will ultimately be awarded the tender, with the government purchasing around 200,000 licenses at a discount price. The move follows on from a deal struck by Interior Minister Ivan Langer and Microsoft executives over the summer, which will enable the Czech state to save around 700 million crowns. The government tender was quietly announced on September 16 and gives companies only ten days to make a bid. The reason for the haste is said to be the impending expiration of current operating licenses, which would mean that from October 1, the Czech state would be running on illegal software. Some have criticized the process saying that it favours larger Microsoft distributors.
Inspectors to check Asian restaurants for Chinese milk
Safety inspectors are to begin checking Asian restaurants around the country, making sure that they are not using Chinese milk. The move comes in the wake of a scandal in China in which milk products were found to be contaminated with the industrial chemical melamine. Milk imports have been banned in the EU since 2002, while stricter bans were also announced this week by the EU, extending to all children’s food. Despite this, there have been fears that improperly marked foods could enter the Czech Republic from third-party states.
Fraud investigation put on ice
A fraud case brought against the state-owned energy company Čepro by the Czech High State Attorney's Office has been halted after a recommendation by the Czech police. The 4 billion crown fraud case was brought about after suspicion that the company’s head deliberately engineered a four billion crown fine for non-deliveries of fuel in order to damage the company and also for financial gain. The complex case involves many of the country’s most notorious actors including the murdered mobster František Mrázek and also the fugitive businessman Radovan Krejčir. The latter of these two, along with the former Čepro boss Tomáš Kadlec were named as formal suspects in the case, but the Czech police have now cited a lack of evidence as a reason to halt the case.
Czech musical instrument makers see fall in sales
New figures from the Czech Trade and Industry Ministry suggest that sales of Czech-made musical instruments have fallen sharply. Between 2000 and 2006, sales fell by one billion crowns from a peak of 2.8 billion. Czech instrument makers include the company Petrof, which makes pianos, primarily for export to France, Germany and the rest of the EU – the company also has a sales arm in the US. The company has reported an annual fall in sales of around 50 million crowns. Nonetheless, as the largest piano maker in Europe, Petrof has still managed to stay in the black with 24.4 million crown in profits last year. The chief culprit for the slump is said to be the strong crown, with cheap competition from Asia also responsible.
Social Democrat gas-tax reduction passes first reading
In a surprise move, a gas-tax reduction bill proposed by the opposition Social Democrats has passed its first reading in Parliament. The proposal would see petrol prices fall by 2,50 crowns a litre, while diesel would fall by 2 crowns. The bill passed through parliament despite opposition from the coalition parties, who have called it “damaging” and even “dumb.” Critics have argued that the move is a populist stunt by the Social Democrats ahead of upcoming local and senate elections. A different bill calling for the partial abolition of doctor’s fees for the elderly, pensioners and those in poverty was also passed by the Social Democrats, underlying disunity in the governing coalition.
Czech companies head for the Polish bourse
Despite continuing unrest in the global financial markets, three Czech companies are to sell shares on the Polish stock market, called NewConnect, according to newspaper reports. The companies – the solar energy maker Photon Energy, wood floor maker Magnum Parket, and one as yet unnamed company, should enter the Polish bourse from October onwards. Poland’s NewConnect is designed primarily to trade shares in small and medium-sized firms. Other Czech companies are also expected to follow suit. In the case of Photon Energy, a spokesperson noted that companies focusing on green energy are unlikely to be affected by current global economic uncertainty.
