The court rejected the lawsuit regarding the method of sale of the former St. Michael's church

Publisher
ČTK
05.05.2007 11:40
Czech Republic

Prague

Prague - The Prague Municipal Court today dismissed the lawsuit of the anti-corruption organization Pink Panther, which challenged the manner of selling the former St. Michael's Church in Prague to its long-time tenant. The court fully upheld last year's decision of the district court. Iveta Jordánová, the chairwoman of the association's board, said this to ČTK. The association proposed by the lawsuit to determine that the owner of the monument-protected property is the state.
    According to Jordánová, the court dismissed the case solely on formal grounds, without considering any evidence. The judge, in agreement with the lower court, ruled that the association, which is not the owner of the property, has no legal claim to demand a change of ownership. A lawyer from the National Library, which was the administrator of the property before the sale, stated during last year's proceedings at the district court that if lawmakers intended for civic associations to be participants in the proceedings, they should enshrine it in law, as is the case for environmentalists. This supported the court's opinion.
    According to the non-governmental organization, such a ruling could set a precedent in that citizens do not have the right to intervene in the decision-making of state institutions that manage their property. The judge stated today that the verdict is based on continuous judicial practice, Jordánová said.
    Before today's hearing, the association also proposed that the judicial costs be borne by both interested institutions. However, the court stated that the National Library, as a contribution organization, also finds it difficult to incur additional expenses; therefore, the entire cost of the proceedings will be borne by the association, Jordánová stated.
    The former church in Prague's Old Town was sold last year by its then-administrator, the National Library, to the long-time tenant of the property. The non-governmental anti-corruption organization is seeking a declaration of the invalidity of the purchase contracts based on which St. Michael's Church was sold for 46 million crowns to a company that had previously rented it. The National Library wanted to use the money for the renovation of Klementinum. According to Pink Panther, the owner of the property, Michal Praha, is linked to companies suspected of money laundering. The estimated value of the property was at least twice as high as the selling price.
    The lease agreement for 30 years, which would have expired in 2029, was created under the previous management of the National Library and Culture Minister Pavel Dostál. Pink Panther also challenges the fact that both state entities approved invoices for the performed renovations amounting to nearly half a billion crowns without checking the completed work. The police acted similarly when they shelved the criminal complaint filed by the association, Jordánová reports.
    The invested funds allegedly prevented the termination of the contract between the National Library and the tenant - in the event of termination, the state would have to compensate for the value of the renovation it has recognized itself. The association argues that it would be better to continue with the lease and then resolve the situation with a more advantageous sale unencumbered by the need to compensate for the invested funds, as well as through a sale based on a tender that did not take place. However, the National Library argues that the lease would last almost another 25 years, which is too long a period. Jordánová argues that state monument care considers a time horizon of years.
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