Prague: Mayor and 10 other officials indicted over smart card system
01 April, 2013
category: Contactless, Smart Cards, Transit
Radio Prague reports that this week, police in Prague indicted 11 members of the city council, including Mayor Bohuslav Svoboda, over charges that they engaged in infringement of competition regulations and breach of trust with regards to the city’s Opencard smart card system.
Prague’s Opencard system can be used throughout the city for travel, libraries and other services. The system has faced criticism from the outset, particularly over its cost of CZK 1.25 billion (over $60 million).
After three audits found that the city overpaid for the Opencard system, police started to investigate Haguess, the company that operates Opencard.
The charges against city officials come in response to its 2012 decision to award more contracts to the system. The city awarded the contract in a closed tender process, and police believe Haguess inflated the price it would charge.
If found guilty, the city councillors could receive up to eight years in prison.
