Audit Targets Overpriced Screens by Prague Public Transit Company

The Prague Public Transit Company (DPP) is set to undergo its first audit focused on contracts with Xanthus Servisní. This company faced criticism for overpriced information system screens purchased for bus stops and metro stations. The audit will also scrutinize other contracts with Xanthus Servisní, for which the company was paid around 160 million Czech korun between 2019 and 2022.

According to Vít Hofman, the spokesperson for the Prague City Council, the council approved the material for a cooperation agreement regarding the in-depth audit at a meeting on Monday. The resolution reveals a contract with the German audit firm StoneTurn Group will be signed this week.

Audity Praha initiated the audits concerning the corruption case known as “Dozimetr,” in which several individuals have been accused of organizing corruption within the DPP.

Under the contract, auditors will examine Xanthus Servisní’s contractual documentation and written communication with DPP employees to verify whether the contracts were economically advantageous. They will also review the reasons for concluding the contractual documentation outside the tendering process. The audit is expected to be completed within three months of signing the contract.

Several audits are being conducted as part of public procurement. The city administration is finalizing a tender for the audit of the economic feasibility of the construction and revitalization of Palmovka and Nádraží Holešovice metro stations. Another in-depth audit will investigate additional contracts in Prague.

“The in-depth audit should reflect the conclusions from these two specific audits,” said Tomáš Havel, the City Administration’s Legislative Department director.

The council approved the audits in June of last year, but the entire process was delayed due to issues with their initiation. “I heard signals from the corridors that there was no cooperation from the transit company, that it wasn’t entirely straightforward. Various people have concerns about these audits,” said Hana Kordová Marvanová, a Prague councilor, in March (originally from the Spolu party).

Petr Witowski, the CEO of the Prague Public Transit Company, denied any lack of cooperation regarding the audits related to the Dozimetr case and Xanthus Servisní.