Extortion a way of life for 20 percent of Czech companies

About 20 percent of Czech companies have experienced extortion in one form or another, according to a survey of 400 firms conducted by the Czech Chamber of Commerce for Hospodářské Noviny newspaper.

Forms of extortion range from rough pressure from competitors to death threats, the study says. Even the largest firms are not immune, according to respondents. Pressure sometimes comes from public officials.

“I have experienced a few attempts to influence our decisions – even on the part of the government. I think that, due to historical developments, extortion is still a big problem in the Czech Republic," the director of a multinational telecommunications company told Hospodářské Noviny.

About 15 percent of “affected" companies complained of extortion on the part of politicians, another 40 percent mentioned unfair trade practices on the part of the competition.

“One company wanted to take part in our tender, but didn't submit a bid. Later the director told me that he had been warned that, if he took part, he could have an accident," the director of brewery Plzeňský Prazdroj Mike Short said at a recent conference on corruption. He said that the director of the company asked him not to intervene, as human lives were at stake.

Admonitions to “halve your bid or we will not deal with you any longer," are the order of the day, most of the queried companies said.

Over half of the respondents said they thought extortion was still a significant problem in the Czech Republic.

“The companies will admit to being the victims of extortion anonymously, but they don't like to talk about it openly. They see it as an internal problem and they feel it would damage them if it came to light," said David Ondračka of Transparency International.

Many of those who have experienced intimidation keep quiet for fear of their own safety. In one case, the director of a Czech IT company was kidnapped after the success of his firm was mentioned in the national media. The kidnappers demanded a ransom of more than 10 million Kč. Since then, he refuses to speak to the media.

Other articles in In the Czech press (28/11/2007):

• Prime minister defends Innsbruck trip
• Greens oppose Čunek's return to cabinet
• Award-winning Czech director finishes film
• American investment fund buys Web portal
• War of the sexes
• "Love nest" hotels on the rise

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