Rath sparks regional controversy

The mayor of the Central Bohemian village of Panenské Břežany, Libor Holík, said he plans to file a complaint with the European Commission against the region's controversial governor, David Rath, alleging that Rath distributes regional development funds based on political connections.

Holík said party affiliation plays the decisive role in how funds are distributed, and that the governor, a Social Democrat (ČSSD), gives less funding to projects proposed by Civic Democratic (ODS) governed municipalities.

"EU funds are distributed at Rath's whim, and ČSSD governed municipalities are favored," Holík said.

Rath responded by saying, "Holík should be careful, because, if he continues to bad-mouth me, I will think about taking legal steps."

In 2008, the authority to distribute such European funds shifted from the Regional Development Ministry to each region's board. In Central Bohemia, Rath heads the board. Of the board's 15 members, one is affiliated with the ODS, six are Communists (KSČM) and eight are members of the ČSSD. The board will distribute more than 559 million euros under the European Union regional development program during the period 2007-13. Unlike state grants, which must be matched 100 percent by municipal funds, EU funds require a match of between eight and 15 percent.

For the revitalization of city centers, 38.7 percent of total EU funds are set aside. Between July and September 2009, 135 million Kč has been made available to bid for in the entire 12-district region with more than 1.2 million residents - an amount mayors fear is not enough.

"Each town applying for the funds needs between 100 million and 150 million Kč, so they will either give all the money to one town or only fund smaller projects," says Ivo Rubík, the mayor of Slaný.

Rath is no stranger to controversy. In February, he contradicted national policy by abolishing health fees in his region. Earlier this year, he also credited Adolf Hitler with jumpstarting the German economy. He has in the past had a public war of words with President Václav Klaus.  

Often, the criteria under which projects will be considered are not made public in time or are changed while the bid is still in progress, mayors say. The regional board might announce a bid that requires only the city to apply for a building permit, and, in the course of weeks, the bid is changed to requiring an approved building permit, which can take up to two months to process, Rubík says. Some bids only allow two months for the city to prepare, forcing the municipalities to spend extra money.

"If you don't know the conditions of the bid, preparing the project becomes much more expensive, because, to play it safe, you have to pay the architects and everybody else to work extra fast," Rubík added.

Once the bid closes, the regional board decides to whom to allocate funds, a process that has been criticized as unnecessarily lengthy.

"A number of municipalities applied for funds in the fall, and, seven months later, they still haven't heard a decision," said Věra Kovářová, the mayor of Chyně.

Delays sometimes put mayors under acute pressure and force them to take personal risks and dispose of money they have not yet been guaranteed. When the town of Slaný was granted funds to host Napoleonic War Anniversary festivities, a contract for the grant was supposed to be given to them in November 2008, but in the end wasn't signed until two weeks before the celebration took place in May.

"I was put in a huge personal dilemma and at risk. I had to call on my town hall members to spend money we didn't have any guarantees for," Rubík said.  

Other mayors feel the regional board neglects them, such as the mayor of the village of Kammený Most, Vladimír Vorel. The village wasn't granted any funds for the renovation of the town square after applying twice in a row, once for grants dedicated to municipalities with fewer than 5,000 residents and another grant open to all villages. The applications were for state funds, not EU funds, but Vorel points to the example as emblematic of general practice.   

"Even getting a simple thing like pedestrian crossing fixed has become very hard recently," he said.

Holík, who is compiling statistics to prove his allegations, which he then will take to Brussels, said he is certain party affiliation plays a decisive role.

"It is very hard for mayors who aren't ČSSD members to receive funds," agreed Josef Kantůrek, a representative in the Central Bohemia regional government.

Rath said such unsubstantiated allegations could lead the EU to stop grants and impose controls on the region, which he said he found unlikely but which would have the potential to postpone funding by months or even years.

Other ČSSD members have sided with Rath. Dagmar Mocová, a member of the regional government, cites statistics for the distribution of regional funds for villages with fewer than 5,000 residents. According to her, 71 percent of the 2009 funds went to municipalities governed by Independents, 8 percent to ODS-governed towns and villages, 14 percent to those led by the KSČM and 7 percent to ČSSD-governed municipalities.

Jaroslav Duraš, who represents the municipality of Benešov in the regional government, thinks that the roots issues are basic.

"This is how it works in a democracy. Of course, you have more influence if you have the majority," he said.

Sarah Borufka can be reached at
sborufka@praguepost.com