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Czech state to sue former government ministers over IPB takeover

The Czech Finance Ministry will sue members of the country’s government that in 2000 oversaw a takeover of the collapsing IPB bank by another bank, ČSOB, Finance Minister Miroslav Kalousek told reporters on Thursday. Mr Kalousek said that in 2000, the cabinet concluded a deal with the ČSOB bank that damaged the Czech Republic and eventually meant that the country lost on Wednesday a 33.3 billion crown, or 1.73 billion US dollars, claim against ČSOB. The Czech finance minister said a lawsuit would be filed against all but one of the ministers in the cabinet headed by Miloš Zeman along with the then head of the Czech central bank, Josef Tošovský, and the former trustee in bankruptcy of the IPB bank, Petr Staněk.

An arbitration tribunal in Paris rejected on Wednesday a 33.3 billion crown claim by the Czech state against ČSOB related to state guarantees provided during the 2000 takeover of the IPB bank. The tribunal also granted ČSOB a 1.6 billion crown award against the state, plus interest.

Norman Eisen appointed US ambassador to Prague

US President Barack Obama on Wednesday took the rare step of by-passing Congress to push through the temporary appointment of Norman Eisen to the post of US ambassador to Prague. The president was able to make the appointment for a 12 month period due to the fact that the US Congress is now in recess. Norman Eisen had worked as an assistant to the president on ethics and government reform since the beginning of his term in January of 2009. His nomination to the post of US ambassador to Prague was blocked by Republican Senator Charles Grassley in September. The post of US ambassador to Prague has been unoccupied since the departure of Richard Graber in January 2009. Analysts say the long vacancy was damaging Czech-US relations.

Czech foreign minister, politicians welcome appointment of new US ambassador

In related news, the Czech Foreign Minister, Karel Schwarzenberg, welcomed on Thursday the appointment Norman Eisen as the new US ambassador to the Czech Republic. Mr Schwarzenberg said it was something to be grateful for although the news was tainted by the fact the appointment was only temporary. Mr Schwarzenberg said it was strange that the post had not been filled for nearly two years but said he would now reciprocally consider appointing a new Czech ambassador to Washington. Deputy head of the lower house’s Foreign Affairs Committee, Jan Hamáček, said on Thursday the situation was an unnecessary complication to Czech-American relations.

Press: Finance Ministry considers privatizing state-owned firms to pay for pension reform

The Czech Finance Ministry is considering privatizing several state-owned firms to pay for the planned pension reform, the daily Mladá fronta Dnes reported on Thursday. By mid 2011, the Finance Ministry would complete a review of state property suitable for privatization, the proceeds of which could pay for the planned pension reform. The paper said that Czech Post, the Budweiser Budvar brewery and the giant forestry company Lesy ČR were among those considered for privatization. Deputy finance minister Zdeněk Zajíček told the daily the privatization of these firms, along with several state-run research institutes could fetch “hundreds of billions” of crowns.

Masaryk University researchers set out on Antarctica expedition

Researchers from Brno’s Masaryk Universitry set out on Thursday on a two-month expedition to the Johann Gregor Mendel Polar Station on Antarctia’s James Ross Island. A university spokeswoman said the 11-member team included climatologists, geologists and ornithologists. The experts are bringing new equipment to the station which should allow for international scientists to take part in future research there. The expedition should reach its destination by January 5. The university-run station opened in 2006 and was named after the Moravian botanist Johann Gregor Mendel.

Press: Ministry looks to small health insurance firms for funds to up doctors’ salaries

The Czech Health Minister, Leoš Heger, is planning to pump some five billion crowns from some of the country’s smaller health insurance companies, the daily Hospodářské noviny reported on Thursday. The daily said these firms have a surplus of around ten billion crowns; Mr Heger told the newspaper that half of those funds could be used to patch the heath care system. The plan has met with opposition from the concerned health insurance companies whereas doctors’ trade unions said it was a good idea, albeit one that would take too long. The Czech Republic is facing mass departures of doctors; nearly one in four physicians in the country’s hospitals has filed their resignation in protest over low salaries.

Bungled international police operation might cost Czech driver his job

A Czech truck driver, who was arrested in Turkey on December 24 in a dodged international police operation, might lose his job, the Czech news agency ČTK reported on Thursday. The man, who works for a Czech transport company, was hired to deliver to Istanbul a load of chemicals that are used in drugs processing. The delivery was part of an international anti-drug operation run by the Slovak police; however, the authorities failed to inform the Czech truck driver or his company, and the unsuspecting driver was arrested by Turkish police and banned from entering Turkey for a year. But his company only delivers goods to or through Turkey, which means the driver will probably have to look for a new job.

Slovak press on Thursday blamed the country’s police for using the Czech driver in an international anti-narcotics operation without sharing the details with Czech police. The owner of the Czech transport firm said he would ask Slovak authorities for an explanation and damages.

December sees record number of people treated for hypothermia

Emergency workers in Prague treated 90 people for hypothermia in December, which was more than twice the number of cases registered in the same month last year, according to a statement by the city’s emergency medical service released on Thursday. Fifteen people died of hypothermia in December, which was three times as many as last December. Emergency workers said that freezing temperatures, wet snow and alcohol was extremely dangerous for people on the street who most often fall victim to these conditions.

Vicious driver faces 12 years in jail

Czech police arrested on Wednesday a 43-year-old driver whose aggressive and dangerous driving caused an accident on the D1 motorway. The man at least twice passed slower vehicles on the right, then lined up ahead of them and slowed down, forcing them to pull over. One of the drivers did not manage to stop in time and crashed. The police accused the dangerous driver of attempted bodily harm; he is facing 12 years in jail.

Hockey: Sparta Prague loses to Canada at Sprengler Cup

Sparta Prague lost to Team Canada 4:3 in overtime at the Sprengler Cup in Switzerland on Wednesday and was eliminated from the tournament. Canada was leading 2:0 and 3:1 in the game but Sparta’s David Výborný equalized in the 37th minute. The game then went to overtime where Sparta was penalized for too many players on the ice, and it only took the Canadians two minutes to score the winning goal. Team Canada advanced to the cup’s semi-finals while Sparta, which had also lost to St Petersburg and Geneva, was sent home.

Hockey: Czechs play Sweden for spot in world U20 championships’ quarter-finals

The Czech national hockey team faces Sweden at the Under-20 world championships in the US on Thursday for a spot among the last eight. The Czechs kicked off the tournament with a 2:0 win over Norway but then lost 7:2 to one of the favourites, Canada. Captain of the Czech team, Jakub Jeřábek, said Czechs needed to play more aggressively and shoot more to overcome the Swedes, who are also considered strong candidates for the medal.


Freezing temperatures will continue until the end of the year, with overcast skies and snow in places. Daytime highs should range between -9 and -3 degrees Celsius.