Czechia faces arbitration proceedings for allegedly thwarted investment

Irish businessman William James Harkin's company, Qucomhaps Holdings, has initiated arbitration proceedings against the Czech Republic. In the early 2000s, Harkin's firm purchased Moravan Aviation, an aircraft manufacturer based in Otrokovice. The company later went bankrupt, and Harkin was accused by the police of embezzling funds and causing damages of 19 million CZK. While a regional court sentenced Harkin to six years for fraud, the verdict was overturned by a higher court.

Now, Harkin and his company are seeking "hundreds of millions of dollars" in compensation, claiming misconduct by law enforcement, insolvency courts, and administrators. According to the Czech Ministry of Finance, the arbitration could potentially cost the state billions of crowns. The arbitration process, which began in August, stems from Harkin's claim of a thwarted investment. However, the exact amount being sought remains unclear.