A Snapshot of Corruption in Czech Republic
The Czech Republic country profile provides companies with an analysis of how corruption affects the country’s political environment and business climate. In general, the legal framework for fighting corruption is relatively developed, but the government has not effectively implemented the laws. Although the majority of the citizens do not encounter petty corruption in their daily lives, they occasionally complain that bribes or gifts are needed in order to speed up the public administration services. Companies doing business in the Czech Republic should be aware of the following developments:
- Criminal liability for legal entities (Act No. 418/2011 Coll.) was introduced in January 2012, covering domestic and foreign corporate entities if registered in the Czech Republic. The Act aims to fight economic crime and corruption more effectively.
- June 2013 saw the biggest anti-corruption raid in 20 years, resulting in Prime Minister Petr Nečas’ resignation and the arrest of the prime minister’s chief of staff, Jana Nagyova, and seven others.
- Corruption is often found in public procurements, in provision of subsidies and in situations where direct interactions between the private and the public sector take place, and these risks remain a hindrance for businesses.
- The Czech Republic has rejected an exception to facilitation payments the OECD Anti-bribery Convention, but enforcement is considered weak.
- The current legislative loopholes concerning political party financing allows companies with diffuse ownership structures and other interest groups, to donate to political parties, in return for influence.
- Whistleblowing protection in both the public and private sectors is inadequate and needs to be further strengthened.
Detailed descriptions of the level of corruption in a number of sectors are outlined in the profile's Corruption Levels. For a more detailed analysis of government, media and civil society anti-corruption activities, visit the Public Anti-Corruption Initiatives and Private Anti-Corruption Initiatives chapters.
Publication date: December 2013
Data verified by: GAN Integrity Solutions