Brussels 'Involved' in Brothel Construction on German-Czech Border

The European Union provided a subsidy of 40,000 euros for the modernization of a holiday pension on the German-Czech border, which is now used as a brothel, German Exact magazine reported.

The so-called "nightclub" is located in a peasant's yard in the Czech town of Pomezi. The European Commission is currently investigating the case.

If the situation turns out to be serious, the anti-corruption unit Olaf could also the join the inquiry. The purpose is to find out whether the local officials had supported the alleged subsidy fraud.

According to the magazine, the company operating the building has already been asked to return the received funds. The company management has not commented on the issue.

As reported by the magazine, subsidies in the Czech Republic are paid immediately after filing a formally correct application. Only afterward, special institutions verify what the money was actually spent for, the article said.