Financial Crime World

Czech Republic Faces Multiple International Disputes Over Alleged Financial Misconduct

Prague - The Czech Republic is currently involved in several international investment disputes. Claimants from various countries accuse the government of financial misconduct, and the cases span a range of issues including alleged expropriation of land, disputes over incentive regimes for renewable energy, and frustrated real estate development projects.

Open Cases

1. Halevi v. Czechia: Court Ruling and Land Expropriation

  • Israeli national Halevi filed a claim against the Czech Republic owing to a court ruling.
  • He believes the court ruling led to the expropriation of land plots meant for a development project in Prague’s Ďáblice district.
  • Halevi had invested in the project, and the case is still pending.

2. JCDecaux v. Czechia: Termination of Rental Agreement

  • French advertising giant JCDecaux is suing the Czech Republic.
  • The dispute centers around the termination of a rental agreement with local enterprise RENCAR.
  • Czech Republic’s Transport Enterprises of the City of Prague canceled a rental agreement for advertising spaces, and the case is still pending.

3. Alcor v. Czechia: Refusal to Conclude Lease Agreement

  • Alcor Group, a United Arab Emirates-based company, filed a claim against the Czech Republic.
  • They allege that the City of Prague refused to conclude a lease agreement with Alcor’s former Czech subsidiary, Alcor CZ.
  • Alcor Holdings CZ s.r.o. had investments in several land plots in the City of Prague, but the case was decided in favor of the state.

4. Fischer v. Czechia - I & II: Government Measures Affecting Investment

  • German investor, Fischer, filed two claims against the Czech Republic.
  • The first claim (Fischer v. Czechia - I) concerned alleged government measures that crowded out Fischer’s investment in a locally-incorporated travel agency, CK Fischer.
  • The second claim (Fischer v. Czechia - II) focused on allegedly unlawful bankruptcy proceedings against Fischer’s investment.
  • Both cases were discontinued.

5. Diag and Šťáva v. Czechia: Damages Claimed due to Government Inaction

  • Swiss and Czech companies, Diag and Šťáva, accused the Czech Republic of inaction.
  • They claimed that local police were inactive regarding accusations of theft against their local Czech partner, Kyjovan.
  • The case concerned the removal of goods owned by one of the claimants’ companies from a warehouse, and it was decided in the investor’s favor.

Ongoing Disputes

Despite these rulings and ongoing disputes, numerous international investment disputes remain open against the Czech Republic. The cases cover various topics from energy incentives and real estate development to fraudulent business activities and expropriation concerns.