Czech PM to step down over graft, spy scandal

Prague: Czech Prime Minister Petr Necas is to formally resign on Monday over a corruption and spying scandal involving his top aide, plunging the recession-hit EU state into fresh political turmoil.

The crisis was sparked by the indictment on Friday of Necas’s chief of staff - and alleged lover - Jana Nagyova with complicity in the “abuse of power and with bribery”.

Police accuse her of asking military spies to tail Necas’s estranged wife Radka.

Seven other senior figures in Necas’s centre-right administration - including military intelligence heads and former lawmakers - have also been charged with corruption among other alleged crimes.

“I am aware of my political responsibility,” Necas told reporters Sunday as he announced his intention to resign to members of his three-year-old minority coalition government.

The graft scandal erupted Thursday when police raided the cabinet office, defence ministry, villas and a bank in a dramatic swoop which turned up large stashes of cash and gold.

An EU member state of 10.5 million people, the Czech Republic has been plagued by corruption since it emerged as an independent state after its 1993 split with Slovakia.

Corruption watchdog Transparency International in 2012 ranked the Czech Republic as worse than Costa Rica and Rwanda in terms of graft prevalence.

Necas’s left wing rival President Milos Zeman, who under the constitution has the power to decide on a new government or call snap elections, has so far kept quiet about what action he will take.

He has however made it clear since his January landside presidential victory over right wing rival Karel Schwarzenberg that he favours the left wing Social Democrat opposition, which opinion polls show will win any snap election.

Necas, a fiscal hawk who also stepped down as chairman of his Civic Democrats (ODS) party, was to meet Zeman at 7pm (UAE time) on Monday to hand in his resignation.

The 48-year-old had announced earlier last week that his marriage was over after 25 years.

“Government has fallen,” the broadsheet daily DNES bluntly declared on its front page.

“Prime Minister Petr Necas announced his resignation... The coalition wants a new prime minister from the ODS, the opposition wants early elections,” the paper said.

All sides however have agreed to ensure a smooth political transition to allow for the clean-up of devastating flood damage in the country. At least 12 people perished in the floods and around 19,000 were forced from their homes.

Analysts say the spotlight is now on Zeman, who took office as head of state in March but has been a prominent political figure since the Communist era.

“He will be asked to show his ability to handle political crises, to come up with a solution, early elections or a government better than this one, which will be able to at least secure the operation of the state,” Josef Mlejnek, a political analyst at Charles University in Prague, said.

If Zeman approves a new prime minister proposed by the ODS, the government can go on until the next regular elections scheduled for May 2014 provided it garners a simple majority in parliament for a confidence vote.

If not, parties may agree on snap elections which would be held within 60 days after parliament is dissolved.

Necas’s government lost its majority in parliament in October but it has nonetheless managed to survive eight confidence votes since taking office in July 2010.

The scandal comes as the country continues to struggle financially. Heavily dependent on car production and exports to the crisis-hit eurozone, the Czech economy has been locked in a record-long recession lasting six straight quarters.