MLSA: Problem with the contract for the payment of benefits. The police also proposed to indict Deputy Maláčová

The police headquarters submitted a proposal on July 1, which will be decided by the Prague High Prosecutor’s Office. Both accused are being prosecuted by the police at large. He accuses them of abuse of power and misconceptions when awarding a public contract. Ibehej added that the subject of the public contract in question was to be the supply of an information system for the payment of non-insurance social benefits.

Due to the system for the payment of benefits, the police intervened at the Ministry of Labor and Social Affairs in February 2020. Subsequently accused Deputy for Economics and ICT Baláč and the head of the information security department Karel Mack. Baláč then told the media that he always acted in accordance with the law in the public procurement of the office and did not cause any damage to the state. According to him, the police are prosecuting him for “too managerial approach”.

The server previously stated that, according to investigators, Macek offered a bribe or replacement orders for the fact that DXC Technology (formerly Hewlett-Packard) would withdraw from the tender. Baláč allegedly also discussed the matter with Robert Baxa, a former deputy at the Ministry of Labor and Social Affairs.who just switched to DXC. The possible damage quantified by forensic scientists corresponds to the amount by which the DXC offer was cheaper than the offer of the other bidder, OKsystem.

The computer system that governs the payment of social benefits has been created and managed by OKsystem since the 1990s. From 2017, the ministry was supposed to have new systems according to plans, but it does not have them yet. It thus extended the contract with OKsystem several times. The MLSA has long been criticized for the state of information systems and its dependence on a single supplier.

After last year’s police raid on the ministry, the prime minister identified Andrej Babiš (YES) situation at the Ministry of Labor and Social Affairs for a big problem and wanted the Minister Jana Maláčová (CSSD) explanation. Maláčová with the Deputy Prime Minister Jan Hamáček (CSSD) then agreed that police intervention is not a reason for her resignation. He dismissed both accused officials from duty and asked Babiš to convene the State Security Council to provide information systems under the auspices of the Ministry of Labor and Social Affairs. But the Prime Minister saw no reason for this. He argued that Maláčová had to manage the systems herself and that she was responsible for them.

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