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Privilégium suspected of subsidy fraud

The NGO at the centre of a labour ministry scandal probably committed subsidy fraud, the Sme daily wrote on August 14.

Privilégium - which got a hefty subsidy from the Labour Ministry, headed by former employee Minsiter Viera Tomanová - said in a statement for the ministry that it had no debts to the state. However, the social services organization owed more than Sk1.5 million in taxes last year, the Bratislava tax office told Sme.

Any state subsidy is contingent on having no debts to the state. Last week, Prime Minister Robert Fico said the subsidy for Privilégium was approved in compliance with the law and the Labor Ministry's regulation. If the law was violated then the subsidy will be taken back, he said.

Tomanová sent inspectors to Privilégium on Friday. Her predecessor, Iveta Radičová, thinks that the move came too late.

"She should have reacted instantly," Radičová said.

SITA

Compiled by Zuzana Vilikovská from press reports
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