The European Commission wrote to the Ministry of Industry and Trade asking it to confirm whether the subsidy of one hundred million crowns for a toast bread production line at the Penam bakery had been paid exclusively from the Czech state budget. The server iROZHLAS reported on the letter on 23 October 2026. The Commission also asks for information on corrective and financial measures. The letter states that the ministry is to submit a statement within two months of receipt and report on the measures adopted, in particular on any financial corrections. The letter comes from the Directorate-General for Regional and Urban Policy.
According to Seznam Zprávy, it reached Prague shortly before the case is due to be heard by the Krajský soud v Praze in November. The indictment was filed in June 2026 by state prosecutor Adam Bašný, who charges the bakery and two individuals with subsidy fraud and attempted damage to the financial interests of the European Union. In the criminal proceedings the ministry has the status of an injured party.
The money for the technology at the Zelená louka bakery, part of the Agrofert group, was paid out under national pre-financing. After audits, the Commission prohibited Czech authorities from submitting to it for reimbursement subsidy applications from companies of this holding, and did not reimburse the project retroactively. According to Seznam Zprávy, the audits concluded that the line was not unique, as bakery representatives had stated, because the same technology had previously been used by a sister plant in Germany. The ministry has been trying to recover the subsidy since autumn 2021 and has not yet received the money. Agrofert's management and Andrej Babiš have long rejected any wrongdoing and claim that the project complied with the subsidy rules.
Related articles: Ministry of Industry and Trade, Penam
Chronology
- — The European Commission asked the Ministry of Industry and Trade in a letter to confirm whether the subsidy of 100 million koruna for a line at the bakery Penam was paid exclusively from the state budget, as the server iRozhlas.cz reported on 23 October 2026. Seznam Zprávy iROZHLAS
Sources
- Seznam Zprávy — 23 October 2026
- iROZHLAS — 23 October 2026