Document 6 - Bill on the Office for the Prevention of Corruption and Conflicts of Interest

[1/2] The bill introduces a new Office for the Prevention of Corruption and Conflict of Interest, which unifies the agendas of political party financing, conflict of interest, whistleblower protection and lobbying regulation. The Office will be independent and will replace the current fragmented competencies of the Ministry of Justice and the Office of the Judiciary. Practical changes include: 1) Lowering the threshold for transparency of donations to political parties from CZK 50,000 to CZK 5,000. 2) Introduction of the obligation to prove the origin of donations from the Czech Republic or the EU. 3) New reporting obligations for public officials, including notifications of cash and investment funds over CZK 100,000. 4) Introduction of the rule of invalidity of public contracts for suppliers in conflict of interest. 5) Obligation to publish information on lobbying in the legislative process. 6) Toughening of penalties for corruption crimes. 7) Introduction of terms of office of directors of university hospitals. The law is set to come into force on 1 January 2027. Companies and public institutions will have to adapt their processes to the new rules, such as adapting IT systems, methodologies and internal guidelines. The proposal brings one-off implementation costs, but promises long-term savings through greater transparency and reduced corruption risks.

[2/2] This part of the document focuses on the transformation of the Office for the Supervision of the Economy of Political Parties and Political Movements (ÚDHPSH) into a new Office for the Prevention of Corruption and Conflict of Interest. The changes include the transfer of institutional provisions from the Act on Political Parties to a separate law, the extension of the Authority’s remit to the prevention of corruption, conflict of interest, the protection of whistleblowers and the regulation of lobbying. The seat of the Office is moved from Brno to Prague. The draft law lays down the organisational structure of the Office, the powers of the President and the Collegium, the rules for the appointment and dismissal of the Chairperson and members, the obligations of cooperation with public authorities and the confidentiality of employees. The transitional provision ensures the continuity of agendas and minimises the administrative burden of transferring competences from the Ministry of Justice to the new Office. The law is set to take effect on January 1, 2027, which provides sufficient time for preparation. Practical impacts include one-off costs for IT integration, training and methodology in 2026, increased costs for supporting agendas in 2027, and from 2028 onwards, operational expenses are expected to be neutralized with potential savings due to centralization. Municipalities and regions will have to adjust procedures in public procurement, but they will receive relief from notification obligations. Contributory organizations will be minimally affected. Companies and citizens involved in conflict of interest, whistleblower protection, and lobbying agendas will not have increased obligations, but can expect greater integrity and enforceability of the rules. The bill does not contain new fees or sanctions, but it brings organizational changes and simplification of processes.