Audit finds Prague archbishopric lost tens of millions in flawed property deals

A forensics audit by KPMG has uncovered a series of financially disadvantageous agreements signed by Prague Auxiliary Bishop Zdeněk Wasserbauer and former archdiocese economist Karel Štícha, costing the archbishopric tens of millions of crowns.
The audit revealed that Wasserbauer and Štícha fixed the rent for Jindřichská Tower at 30,000 crowns while binding the archbishopric to costly repairs of the historic monument. They also leased lucrative residential land to a golf course for 70 years, removing it from areas designated for housing development. Additionally, the archbishopric was obligated to sell valuable plots to a municipality, which resold them at a profit exceeding 120 million crowns.
Following the audit’s completion, Wasserbauer resigned from all economic roles within the archdiocese. In March, he left the archbishopric’s economic council, later stepping down from the archbishop’s advisory board and the supervisory board of the Arietinum Foundation, which oversees church property management.
The audit’s findings were first reported by Deník N, which noted that the archbishopric had long struggled with the financial burden of operating Jindřichská Tower. In 2022, the decision to sell the tower sparked controversy, with General Vicar Jan Balík stating that ownership was no longer financially viable for the archbishopric.
The audit’s disclosure comes amid broader scrutiny of financial mismanagement in public institutions. In a separate case, Prague’s city council is considering the dismissal of officials accused of involvement in a "family business" scheme linked to 250 million crowns, according to Czech Radio. Meanwhile, a court ruled that Český Těšín’s city council failed to provide proper documentation to a construction firm, Porr, which had been contracted to repair Nádražní Street. The city had sued the firm for over 1.5 million crowns for delayed work, but the court found the firm could not complete the work due to inadequate materials provided by the municipality. The city has since appealed the decision.
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