The construction of the courthouse in Brno is accompanied by financial difficulties

Publisher
ČTK
12.09.2007 10:05
Czech Republic

Brno

Brno - The construction of the Justice Palace in Brno, which is supposed to be one of the most modern court complexes in Central Europe, is accompanied by financial problems, according to today's Mladá fronta Dnes. The general contractor, the company Imos Brno, sold receivables worth 320 million crowns owed to the ministry to a private foreign bank last week. The reason is said to be unclear financing of the project. The Ministry of Justice denies any complications.
    "The ministry already postponed a payment for the unfinished building once and now it asked the company Imos to wait several months again for the next installment. This resulted in the company preferring to sell the receivable," said an unnamed source from MfD. The bank could reportedly demand an increase in the amount in case of delayed payments.
    According to the ministry, which has recently denied claims of an alleged financial crisis in justice, the construction is proceeding without issues. "We do not record any overdue liabilities towards the supplier of the judicial complex. Everything is proceeding according to the agreed contract," the office stated in a declaration. The assignment of future receivables to a third party is said to be a common procedure.
    The Justice Palace on Heršpická Street is intended to serve the Brno City Court, the District Court Brno-Country, and also the public prosecutor's office. It is reportedly set to open to the public in 2009.
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