Legal strategy protected client from having to return a large portion of subsidy

ARROWS Law Firm provided legal representation to a recipient of public subsidies who was facing a significant reduction in support due to an alleged breach of project conditions. The aim was to challenge the legal classification of the identified shortcomings and prevent the obligation to return part of the funds already paid out. Thanks to the chosen strategy and precise procedural defense, the penalty was significantly reduced and the project was able to continue without fatal financial consequences.

ARROWS represented a client in the audit phase and subsequent administrative proceedings concerning a penalty for breach of budgetary discipline. The audit authority found irregularities in the tender procedure and proposed a reduction in subsidies amounting to millions of Czech crowns. After a detailed analysis of the documentation, we chose a strategy based on proving the absence of a material impact of the error on the selection of the supplier and on the fulfillment of the purpose of the subsidy. This option was chosen because the legal qualification of the violation was disproportionately strict and did not correspond to the case law or methodologies of the provider. ARROWS prepared a comprehensive statement on the audit findings, developed legal arguments including references to relevant case law, and coordinated the supplementation of evidence.

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Following the objections filed and further procedural steps, we succeeded in achieving a reassessment of the amount of the correction and a significant reduction in the payment. At the same time, the firm set up the client's internal processes so that future projects would be implemented in full compliance with subsidy rules and procurement legislation. The result was the preservation of the majority of the subsidy granted, minimization of reputational risk, and a legally stable conclusion to the proceedings without the need to return a substantial portion of the support.