Czech Republic: Police accuses foreign company’s former chiefs over Ceske pivo case

The anti-corruption police have started criminal proceedings against Randall Dillard and David Thirska, former managers of the Czech branch of Japan´s Nomura company, Prague Daily Monitor posted September 05. Both former managers have been accused of misuse of information in trade relationships in Ceske pivo (Czech beer).

According to the iDnes news server report of September 05, the accusations are linked to Nomura´s operation in Investicni a postovni banka (IBP) bank that has gone bankrupt.

Nomura had a stake of almost 50 percent in IPB. The Ceske pivo was linked with the sale of IPB-held Plzensky Prazdroj brewery shares to Nomura.

Nomura merged Prazdroj with Radegast and sold the whole group for CZK24 billion to the South African concern SABMiller. Police say, however, that this operation was disadvantageous for IPB and that Nomura unjustifiedly earned CZK7 billion.

"We stand by our former employees and we believe that they will be acquitted. We consider the accusation to be yet another example of the Czech state abusing criminal proceedings to intimidate Nomura," said Jiri Hrabovsky, Czech representative of the Japanese bank.

The Czech Republic now sues Nomura over CZK111 billion crowns for poor management of IPB which had to be put under forced administration.

The Czech Republic lost in the spring an arbitration case in which Nomura wants up to CZK40 billion crowns because the country failed to protect its investment in IPB.

(USD1=CZK21.942)

08 September, 2006