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December 5th, 2008
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Schwarzenberg probes Čunek file

Minister hired New York firm to investigate past allegations

By Ondřej Bouda
Staff Writer, The Prague Post
May 28th, 2008 issue

VLADIMÍR WEISS/THE PRAGUE POST
The allegations - and subsequent clearing of bribery charges - against Deputy Prime Minister Jiří Čunek, above, prompted Schwarzenberg to hire the Kroll detective agency.
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Investigation highlights

A timeline of Čunek's questionable activities
1996-99 Deposited 3.5 million Kč in his bank accounts, while earning some 20,000 Kč per month and collecting 200,000 Kč in social benefits
1998 Became co-owner of the development company Ruchstav Holding, although it was later revealed that he never bought its shares, instead he ?borrowed? them for free
2002 Allegedly received a 497,000 Kč bribe from property developers H&B Real for selling a 51 percent city stake in the Vsetínské byty housing company
May 2007 Destroyed his secretary's calendar of his meetings, which had been a key piece of evidence in the case against him. He had allegedly received it from police by mistake
November 2007 Resigned from government
January 2008 Cleared of all wrongdoings
April 2008 Returned to office as deputy prime minister

Christian Democratic Chairman and on-again, off-again Deputy Prime Minister Jiří Čunek has kept everyone on their toes for the past two years. Many of his controversial decisions and statements have been simultaneously applauded and condemned while his affairs have angered government officials and the general public alike. Through questionable procedures he has been cleared of allegations including accepting bribes, receiving social benefits and sexual harassment by the state attorney’s office.
Many remain unconvinced of his innocence. Foreign Affairs Minister Karel Schwarzenberg decided to pay for an audit of Čunek’s private finances out of his own pocket. “If the audit does not fully clear Čunek, it will mean personal consequences for me,” said Schwarzenberg, referring to a public pledge to resign his own post if proof of wrongdoing is found.
To do the dirty work, he hired one of the largest detective and risk-assessment agencies in the world, the New York–based firm Kroll. The agency has worked on high-profile cases such as investigating Saddam Hussein’s foreign accounts and Enron. They’ve also worked in the Czech Republic in the past, investigating Viktor Kožený, the notorious “Pirate of Prague,” when he started his financial business in the early 1990s.
Regarding the Čunek case, Kroll is eager to inspire confidence. “We guarantee gathering all available information and sorting through it so the client can get a clear picture of the situation,” the company said in an e-mail, declining to reveal any specific details concerning the case. “We are absolutely independent and reliable. We do not give in to any pressures to arrive at a predetermined conclusion.”
Schwarzenberg has paid dearly for the services of the U.S. detective agency. Although media estimates place the price tag at around 500,000 Kč ($31,368), Kroll contradicted the figure.
“That is nowhere near enough to do a proper job. Usually high-profile cases cost hundreds of thousands of dollars a month, but we have tried to accommodate the client, as it is a single person paying for the case.”
Schwarzenberg feels he’s making a worthy investment. “It might seem like overkill hiring such a high-caliber firm on such a small bird,” he said. “But since no adequate tools existed within the system, I had to look outside for a dependable agent who will deliver.”
According to the deputy prime minister’s office, Čunek has decided that he will not talk to the media on the subject until the so-called audit is finished.
Čunek’s questionable activities started to come to light in November 2006, after his secretary accused him of sexual harassment. During the ensuing investigation, police discovered that, while Čunek was mayor of Vsetín, east Moravia, he allegedly accepted a bribe of half a million crowns in 2002. The bribe was said to have taken place at a meeting with property developers H&B Real, relating to the sale of a 51 percent stake in Vsetínské byty, a city housing company. Police charged him with corruption in February 2007 and the Senate stripped him of immunity.
But, as the case came to a head, it was taken over by another state attorney, who cleared Čunek of any wrongdoing in August 2007 (that May, Čunek allegedly destroyed key evidence when he came into possession of his secretary’s calendar, which contained his meeting schedule). Despite several attempts to reopen the case, the decision held.
However, while investigating his personal finances, police turned up another red flag when they found he allegedly deposited approximately 3.5 million Kč into his own bank accounts while also receiving social benefits in the 1990s. Čunek supplied various explanations, finally citing personal savings and loans from family members — claims that later proved unlikely.
Amid such allegations, Čunek resigned his government posts in November 2007. But, after he was cleared by another state attorney in January, he returned to office.
As questions regarding Čunek’s activies remain unanswered, Schwarzenberg has high hopes for the investigative efforts he’s taken into his own hands.
“I do not wish to keep the final findings for myself,” he said. “We should see the first results in six weeks’ time.”

Ondřej Bouda can be reached at obouda@praguepost.com


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