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Carolina (English) No 372
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STUDENTS' E-MAIL NEWS FROM THE CZECH REPUBLIC
Charles University in Prague
Faculty of Social Sciences
Smetanovo nabr. 6
110 01 Prague 1
Czech Republic
e-mail: CAROLINA@mbox.fsv.cuni.cz ISSN 121-5040
tel: (+4202) 22112252, fax: (+4202) 22112219
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
C A R O L I N A No 372, Friday, April 21, 2000.
FROM THE EVENTS OF THE PAST WEEK (April 12 - April 19)
Prague Court Begins Trial on ODS Tax Evasion
The trial of former Civic Democratic Party (ODS) Vice Chairman
Libor Novak on tax evasion charges began April 17. Prosecutors say Novak
broke the law by attributing sponsor contributions to a larger number of
sponsors and thus decreasing the party's tax liability. This is the
Czech Republic's first criminal case related to party financing. The ODS
scandal, marked by the use of nonexistent sponsors, led in December
1997 to the fall of the former Prime Minister Vaclav Klaus's government
and early elections the following June.
The ODS got two donations worth 15 million crowns in 1995 and
Novak, who was responsible for party finances, deprived the state of
between 500,000 crowns and 1 million crowns by dividing the gifts among
more sponsors. The first 7.5 million he divided in half between two
false donors - a dead Hungarian named Lajos Bacs and Radjiv M. Sinha,
a citizen of Mauritius who had never heard of the party. Former pro
tennis player and current co-owner of the Moravia Steel corporation
Milan Srejber, interested then in the privatization of the Trinec
Ironworks (Trinecke zelezarny), admitted he gave the money. The donation
of the second 7.5 million crowns has not yet been explained. Novak
credited the contributions to four businessmen from Usti nad Labem, but
the money came from account of Jaroslava Mlejnkova, wife of former
Sparta Praha soccer player Miroslav Mlejnek.
The scandal broke in fall 1997 and in December 1998 Novak was
charged with tax evasion by the Prague public prosecutor. Novak has
pleaded not guilty, saying he only signed what was placed in front of
him. Presiding Judge Michal Hodousek said he wants to conclude the trial
in nine days. Witnesses called to testify include ODS Chairman and
former prime minister Vaclav Klaus, party Vice Chairman Miroslav Macek
and former ODS Vice Chairman and Foreign Minister Josef Zieleniec. About
30 witnesses are expected to testify.
Darina Johanidesova/Darina Johanidesova
Prague Activists Demonstrate against IMF and World Bank
About 300 activists demonstrated April 16 against the International
Monetary Fund (IMF) and the World Bank on Prague's Old Town Square.
A permit for the demonstration had been denied by Prague 2 District
Office. Demonstrators marched after a few speeches to Wenceslas Square,
where they finished their protest. Ivo Belohubek of the Initiative
against Economic Globalization said, "Thank you, I hope next time we'll
get together in greater numbers." Prague will host the IMF and World
Bank's fall session in September.
The demonstration was monitored by about 600 policemen, who
arrested six activists. Some of them accused the police of violating the
activists' right to assemble peacefully. Activists and the police each
expressed their satisfaction with the day's events.
Jan Vedral Jr./Jakub Jirovec
Chamber of Deputies Passes Amendments to Labor Act
Deputies April 18 passed significant amendments to the Labor Act as
proposed by the government. The changes strenghten the position of
workers - minimum vacation is extended from three weeks to four weeks,
limits overtime and requires employers to discuss the mass layoffs with
employee representatives. Also, any employee, male or female, will have
the right to take parental leave until his or her child is three years
old. The law will take effect January 1 and must be approved by the
Senate and signed by the president.
The proposal was supported by 122 of 181 present deputies, while
all Civic Democratic Party (ODS) deputies were against. ODS said it
considers the changes a threat to the competitive ability of the Czech
Republic and to small and medium-sized business. The changes require all
companies allow their employees to see company accounting records and
trade contracts. However, there is no confidentiality requirement in the
law, one of the main objections of ODS.
Labor Minister Vladimir Spidla said the amendments open the way to
the EU and creates a normal, civilized legal structure appropriate for
the end of the 20th century. He said the ODS position on social policy
was anachronistic.
The debate in the Chamber of Deputies was closely monitored by
labor unions. Chairman of the Czech-Moravian Confederation of Labor
Unions and Senator Richard Falbr said he welcomed the amendments and
support for them signifies a pro-European stance.
Ondrej Maly/Ondrej Maly
Strike in Kohinoor Mine Continues
The Most Coal Company (Mostecka uhelna spolecnost, MUS), owner of
the Kohinoor coal mine, signed April 18 a contract on a future contract
with Ladislav Pleticha's SHD-Peel company. The contract was cancelled
the next day, because miners staging an occupying strike in the coal
mine refused to leave.
The 46 miners continue to strike. Frantisek Nekola, vice chairman
of the miners' union, said the miners will establish a crisis group to
negotiate with the government. The strikers have been 365 meters
underground since March 31 and are demanding the sale of Kohinoor. They
are afraid the mine will be closed - and they will be left unemployed in
the Most region with its 20-per-cent unemployment rate. MUS want to
close the mine by the end of next year, because coal from Poland is much
cheaper and demand for brown coal is declining.
Dita Eckhardtova/Jakub Jirovec
Shareholders of Cooperative Credit Unions Demonstrate
Hradcanske Square in front of Prague Castle witnessed April 13
a demonstration of some 800 shareholders of cooperative credit unions
who want their investments back. The demonstrators said they wanted to
force the Office for Supervision of Cooperative Credit Unions to take
greater responsibility for the errors that led to the bankruptcy of the
credit unions and to introduce needed measures.
In a petition presented by Frantisek Zoubek, former chairman of the
Pria credit union, the protesters requested the fast approval of a law
that would partially compensate credit-union shareholders.
Seven credit unions are under forced administration, many others
have been limited in their operations with deposits. The daily Pravo
wrote that almost 10 billion crowns are blocked, which is about 90 per
cent of all money invested in credit unions.
Pavel Korinek/Ondrej Maly
World Hockey Championships to Be on TV NOVA
Vladimir Zelezny, general director of TV NOVA, said April 13 that
the TV NOVA and the Swedish company MTG, owner of broadcasting rights
for the World Hockey Championships, came to an agreement on coverage of
the tournament April 29 - May 14 in St. Petersburg, Russia.
The broadcasting rights had been an issue for weeks, after TV
NOVA's former service company CNTS refused to withdraw from its
three-year agreement with MTG; the original contract for the 1997-2000
championships was closed between MTG and CNTS, not with TV NOVA
license-holder CET-21. CNTS was ready to resell the rights to
public-service broadcaster Czech television or TV Prima, but Czech
Television could not fulfill the contract conditions for teleshopping
time for MTG. TV Prima and CNTS also failed to reach an agreement. CNTS
has tried so far without success to impose a preliminary injuction in
a Swedish court on MTG not to transfer the rights to TV NOVA.
David Luksu/Milan Smid
NEWS IN BRIEF
* Prime Minister Milos Zeman asked President Vaclav Havel to recall
Regional Development Minister Jaromir Cisar and Transportation Minister
Antonin Peltram in a letter which the Office of the President received
April 18. Their successors should be the Social Democrat (CSSD) Vice
Chairman Petr Lachnit (Regional Development) and Parliament deputy
Jaromir Schling (Transportation). These should be the last changes in
the government required by the Civic Democratic Party (ODS) in exchange
for their support of the 2000 budget.
* The Chamber of Deputies elected seven people to the nine-member
Czech Television Council, the supervisory body which chooses and recalls
the station's general director and approves its budget. Three new
members were nominated by the Civic Democratic Party (ODS), two by the
ruling Social Democrats (CSSD), one by the Freedom Union (US) and one by
the Christian Democratic Party (KDU-CSL). Some observers claim this
method of elections based on the political partisanship calls into
question the independence of the council. The two remaining members of
the council (nominated probably, according to a preliminary agreement,
by the Social Democrats) will be elected during the May session of the
Chamber of Deputies.
* According to polls taken by the Sofres-Factum agency, the Civic
Democratic Party (ODS) would win a general election today with 27.6 per
cent of the vote. The Communist Party (KSCM) would receive 22.9 per
cent, the Freedom Union (US) 15.4 per cent, the ruling Social Democrats
(CSSD) 13.2 per cent and the Christian Democrats (KDU-CSL) 9.2 per cent.
* Employees of the bankrupt Poldi Steelworks received their back pay
April 17 - more than three years after the company was placed in
bankruptcy. The Kladno branch of the Czech Savings Bank will pay out
about 98 million crowns to 2,401 former workers.
* Prime Minister and Social Democrat Chairman Milos Zeman became
chairman of the Committee of the Socialist International for Peace,
Democracy and Security April 10. The committee's task is to work out
issue positions for socialist and social democrat parties throughout the
world. In the future it should also push for forgiving the debt of
Africa's poorest countries, eliminating violence against women and
abolishing the death penalty in all countries.
Michaela Kleckova and Martin Moravec/Simon Dominik
FOREIGN AFFAIRS
Cubans Demonstrate against Czech Republic
More than 100,000 Cubans rallied in front of the Czech Embassy in
Havana April 18. The crowd echoed with cries of "The Czechs are lackeys
and puppets in the hands of the USA! Stop the lies!"
The Cuban Communist regime organized the rally to protest the
Czech-Polish proposal of a UN resolution to criticize the actions of
Fidel Castro's regime against Cuban dissidents. The UN Commission for
Human Rights in Geneva approved the resolution despite the tense
atmosphere (out of 53 countries, 21 were for the proposal, 18 against
and 14 abstained) and denounced human-rights violations in Cuba. The
Czech Republic and Poland in the resolution ask Cuba to start a dialogue
with the opposition and release anti-regime activists.
Cuba's ambassador to the UN said "the real authors of the
resolution are the United States, which will not give up their interest
in manipulating the Commission."
Dita Eckhardtova/Simon Dominik
Days of Czech Culture in Vienna
Days of Czech Culture were opened in Vienna April 14 with an
exhibit on Czech surrealism and L'art brut. Other projects include an
exhibit of the winning photographs from the last three Czech Press Photo
competitions and films by Jan and Eva Svankmajer. A concert is also
planned by the Prague Symphony Orchestra FOK with violinst Ivan Zenaty.
The festival will last until May 25.
Iva Potrebova/Michael Bluhm
FROM SLOVAKIA
Slovak Government Stays in Office
Premier Mikulas Dzurinda and his Cabinet remain in office after an
unsuccessful vote of no confidence was taken in the National Assembly
April 13. The proposed recall of the government was predictably
supported by the opposition and shockingly supported by Chairman of the
Assembly and the governing coalition Party of the Democratic Left (SDL')
Jozef Migas.
Sixty assemblymen of 141 present voted for the proposal, 72 were
against and nine abstained. According to the Constitution, the
government can be recalled by a simple majority of all legislators
(i.e., at least 76 votes in the 150-member Assembly). Dzurinda said
after the vote that he was still willing to govern together with Migas'
leftists.
In the debate before voting, opposition legislators called
Dzurinda's policies the cause of the economic and social decline of the
country. Sergej Kozlik of the Movement for a Democratic Slovakia (HZDS)
said, "Mr. Dzurinda is evidently not capable of his function and
Slovakia is in a great crisis. The Premier is not fulfilling his
campaign promises and has thus defrauded the citizens of Slovakia." He
said the Cabinet is not prepared to deal with economic and social
problems and emphasized the 20-per-cent unemployment rate, the decrease
in industrial production and in foreign investment.
Dzurinda said Slovakia is on the right path: "We now have the
chance to join the advanced world. Behind the proposal for my recall is
an obvious effort to call attention away from the fear of the leader of
the opposition before the law (former Premier and current HZDS Chairman
Vladimir Meciar is not willing to testify in a number of cases - see
Carolina 370).
Veronika Hankusova/Veronika Hankusova
After deadline: Police swat teams used explosives to gain entry to
Meciar's villa in Trencianske Teplice on the morning of April 20. Meciar
was taken in to testify about allegedly illegal compensation for members
of his Cabinet.
Luxembourg Seventh Country to Require Visas for Slovaks
Luxembourg will become April 20 the seventh European country to
require visas of Slovak citizens, according to the head of the Passport
and Visa Department of the Luxembourg Foreign Ministry Bernard Bach.
Slovak citizens will need visas when traveling to Great Britain,
Ireland, Finland, Denmark, Norway, Belgium and Luxembourg.
Unlike other countries, the visa requirement in Luxembourg was not
introduced as a result of a flood of Slovak Romanies requesting asylum,
but rather to show solidarity with Belgium, which iniciated the
requirement April 13. Belgium, Luxemburg and the Netherlands have the
longest tradition of asylum in Europe. Holland is not threatening
Slovakia with visas but is monitoring the number of asylum applications.
Veronika Hankusova/Veronika Hankusova
ECONOMY
New Commerce Bank CEO Appointed
After nearly two months of provisional management in the Commerce
Bank (Komercni banka), Finance Minister Pavel Mertlik made public the
name of the new bank CEO - Radovan Vavra, 46, former member of the board
of directors of Citibank's Prague subsidiary. Vavra takes office April
19 and will replace as general director and chairman of the board of
directors Jan Kollert, who had to step down in connection with the
8-billion-crown loss recorded on loans to the Austrian company B.C.L.
Trading (see Carolina 363).
In banking circles, Vavra is known as an efficient banker with good
experience in loan relationships with small and medium-sized enterprises
in Citibank.
Vavra refuses to comment on his next steps in the bank, but it is
generally assumed that he will reshuffle the management of the bank, and
Vavra has said he will take active part in the process of hiring new top
management in the last Czech bank controlled by the state and preparing
for privatization.
Lubos Kratochvil/Milan Smid
ECONOMY IN BRIEF
* The dollar reached a record high against the crown April 18 as
trading took place at 38.50 crowns to the dollar. Since the Czech
National Bank intervened to weaken the crown, it has remained slightly
above 36 crowns to the euro.
* The Prague Stock Exchange's PX-50 index flopped 5.4 per cent April
17 in the wake of the bad news coming from US capital markets. The
PX-50 hit its lowest level since February and among the companies
hardest hit were telecommunication giants Czech Telecom and Czech
Radiocommunication.
* Trade Minister Miroslav Gregr announced last week the government
has approved investment incentives worth more than 2 billion crowns for
29 companies that intend to create more than 14,500 new jobs.
Lubos Kratochvil/Michael Bluhm
Rates at the Czech National Bank (valid April 21)
--------------------------------------------------------------
1 EUR = 36.270
country currency CZK
------------------------------------------
Australia 1 AUD 22.978
Great Britain 1 GBP 60.940
Denmark 1 DKK 4.867
Japan 100 JPY 36.850
Canada 1 CAD 26.175
IMF 1 XDR 51.756
Hungary 100 HUF 14.054
Norway 1 NOK 4.440
New Zealand 1 NZD 19.188
Poland 1 PLN 9.008
Greece 100 GRD 10.817
Slovakia 100 SKK 87.331
Slovenia 100 SIT 17.780
Sweden 1 SEK 4.408
Switzerland 1 CHF 23.071
USA 1 USD 38.595
Exchange Rates of countries participating in the euro
(converted from the euro rate)
country currency CZK
-----------------------------------------
Germany 1 DEM 18.545
Belgium 100 BEF 89.911
Finland 1 FIM 6.100
France 1 FRF 5.529
Ireland 1 IEP 46.053
Italy 1000 ITL 18.732
Luxemburg 100 LUF 89.911
Netherlands 1 NLG 16.459
Portugal 100 PTE 18.091
Austria 1 ATS 2.636
Spain 100 ESP 21.799
CULTURE
Drtikol's Early Works on Display in Prague until June 4
Czech photographer Frantisek Drtikol's (1883 - 1961) photographs
are on display in Prague's Museum of Applied Arts (Umeleckoprumyslove
muzeum) until June 4 as part of the project Prague, European City of
Culture 2000. Drtikol, famed for his nudes, is credited with helping
emancipate photography and make it a recognized form of art. The first
part of the exhibit shows Drtikol's works from 1901-1914. The flavor of
Seccession pictorialism and landscape photography gradually gives way to
nudes. The second part of the exhibit features 50 works from the Album
From the Court and Courtyard of Old Prague, released in 1911 with the
assistance of Augustin Skarda.
Tereza Tesarikova/Michael Bluhm
Narvan Suffers Tragic Accident
Front-man Mario Feinberg and guitarist Martin Pokora, co-founders
of the Brno band Narvan, died in a car accident April 13. The group made
three records and had a promising future. The band started as a rock
group but moved toward funk after its first two albums.
Jan Vedral Jr./Simon Dominik
SPORTS
Sparta Wins Hockey Extraleague
Just after 7:00 p.m.April 13 on the ice of the Na Lapaci arena in
Vsetin, Sparta players covorted with the nearly 1.5-meters/4.5-foot
trophy as extraleague champions, while Vsetin captain Jiri Dopita with
an apologetic smile displays Vsetin's runner-up cup. Sparta won the
third game of the best-of-five final series and became champion in the
quickest possible fashion - Sparta won nine stright games in the
playoffs, sweeping all three series. Vsetin had won the last five
championships.
As Vsetin's players promised, the third game was more dramatic.
Vsetin created while Sparta defended. Sparta goalkeeper Petr Briza
stopped the attacks of the home team, and so David Vyborny, Sparta coach
Frantisek Vyborny's son, decided the game and the series with a goal
from the scrum in front of the net.
Sparta fans waited for their team until midnight and 5,000 of them
attended a celebration in Prague's Paegas Arena April 16, in which the
loudest ovations were given to Richard Zemlicka and Petr Briza.
Hockey extraleague 1999-2000 final standings: 1. Sparta Praha, 2.
Vsetin, 3. Plzen, 4. Trinec, 5. Zlin, 6. Ceske Budejovice, 7. Litvinov,
8. Pardubice, 9. Znojmo, 10. Slavia Praha, 11. Karlovy Vary, 12. Kladno,
13. Havirov, 14. Vitkovice.
Darina Johanidesova/Mirek Langer
Soccer League: Sparta Led Standings for 48 Hours
Sparta Praha, one point behind the top-place Slavia Praha in the
soccer league standings, led the league for 48 hours after its 2-0 win
over Hradec Kralove. Slavia then managed to defeat Opava and return to
first place.
Sparta won comfortably and did not allow anything to the home team
players in Hradec Kralove April 14. Only an excellent performance by
Hradec goalkeeper Novotny and weak play by Sparta's forwards avoided
a blowout. On the contrary, Slavia started its game slowly, but
dominated after the first goal by Tomas Dosek. In the end, Slavia's
performance was applauded even by Sparta coach Ivan Hasek, who came to
watch his team's biggest opponent. In the case of a tie at the top of
the standings, Sparta would win because of a larger differential between
goals scored and goals allowed.
Sparta and Slavia will meet in the 28th round.
The fight to stay in the league is becoming dramatic. Dukla Pribram
joined the list of endangered by losing four times in a row. Jablonec
helped itself with a win in Blsany and left the last place in the
standings.
Results of the 25th round: Hradec Kralove - Sparta Praha 0-2,
Slavia Praha - Opava 3-1, Drnovice - Pribram 2-1, Olomouc - Zizkov 2-0,
Blsany - Jablonec 1-2, Liberec - Teplice 2-0, Ostrava - Ceske Budejovice
1-1, Bohemians Praha - Brno 0-0.
Standings: 1. Slavia Praha 64, 2. Sparta Praha 63, 3. Drnovice 46,
4. Bohemians Praha 35, 5. Brno 33, 6. Liberec 32, 7. Teplice 32, 8.
Blsany 31, 9. Olomouc 29, 10. Ostrava 28, 11. Zizkov 28, 12. Ceske
Budejovice 28, 13. Pribram 27, 14. Opava 24, 15. Jablonec 23, 16. Hradec
Kralove 20.
Jan Moravek/Mirek Langer
SPORTS IN BRIEF
* The Czech national hockey team played two friendly games in
Switzerland to prepare for the upcoming World Championships. It won the
first game 1-0, the second finished in a 1-1 tie. Coach Karel Augusta
said he was satisfied with the defense, but the offense was
disappointing. After deadline the national team met Russia twice,
winning in Mlada Boleslav and losing in Prague.
* One second-league team will play in the final of the Soccer Union
Cup: the winner of the game between second-league teams Ratiskovice and
Vitkovice. Olomouc and Liberec will meet in the second semifinal. In the
quarterfinals April 12 Slavia's squad was nearly bare of starters and
lost to Liberec 0-2. Vitkovice advanced over Jablonec 3-2 after penalty
shots. Olomouc eliminated Viktoria Zizkov 2-1 on an overtime goal and in
another game between two second-league teams, Ratiskovice defeated Plzen
(which previously eliminated Sparta) 2-1.
Jan Moravek/Mirek Langer
WEATHER
Prague is full of Easter decorations and everything is ready to
host herds of tourists who shall crowd the Charles Bridge and the Old
Town Square and Prague Castle. The weather of the past week has added to
Prague's beautiful setting as by rushing bushes and trees to blossom and
the grass to turn green. No rain, plenty of sunshine, daily temperatures
of 15-20 degrees Celsius/59-68 degrees Fahrenheit - that was the week
that was.
Radka Kohutova
English version edited by Michael Bluhm.
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