Prague City Hall challenges real estate auction amid allegations of misconduct

The Prague City Hall has decided to pursue appeals against the results of last year’s auction of properties formerly owned by entrepreneur Jaromír Soukup. The city’s councillors voted to defend their position using all legal means, following suspicions of leaked information that may have influenced the auction process.

The properties were acquired by the city in a forced auction for CZK 649 million, just under the CZK 650 million limit set by councillors for the purchase. However, concerns arose that a second participant may have deliberately driven up the bidding price after gaining access to insider information. The municipality has filed a blanket appeal, which will now be supplemented with further justification.

Deputy Mayor Jiří Pospíšil (TOP 09), Deputy Mayor Jana Komrsková (Pirates), and representative Hana Kordová Marvanová (ind.) have also filed a criminal complaint related to the auction, with the municipality joining as a potential victim.

Should the appeal succeed, the auction will be repeated. Councillor Adam Zábranský (Pirates) indicated that the city would likely participate again but with a reduced maximum bid due to the previous outcome.

If the court confirms the validity of the auction, Zábranský suggested the city consider an offer from the second-highest bidder, the investment fund IFIS, which proposed purchasing the property for CZK 647.9 million, its bid during the auction. However, this proposal has met resistance from the STAN coalition movement.

STAN representative Antonín Klecanda emphasized that the properties are strategic assets essential for public development. “The land represents an opportunity to develop education, sport, and other public services,” he stated at an extraordinary city council meeting.

The municipality has expressed interest in using the land for a campus to address the shortage of secondary school capacity. The Kobra Praha hockey club, which operates an ice rink near the auctioned properties, also supports retaining the land for public use. “This is a unique opportunity to expand school infrastructure and connect education with sports development,” the club said in a statement.

The auctioned properties previously housed Empresa Media, a company owned by Jaromír Soukup. Recently, entrepreneur Jan Čermák acquired Empresa Media, along with Barrandov TS and Media Master, amid insolvency proceedings. The court has allowed the reorganization of these companies.

The outcome of the city’s appeal and the future of the properties remain uncertain, but the case underscores the importance of transparency and strategic planning in public asset acquisitions.

Source: CTK