1999: Construction Contractor Rents Luxury Flat to Czech Politician for Discount Rate

Czech businessman Lubomir Kasak, owner of the construction contractor IDOS Praha, rents a luxury flat to Miroslav Kalousek, a member of the Chamber of Deputies for the Christian Democrats, and his brother-in-law, at a very large discount. The flat is in the upmarket area of Veleslavin in Prague, measures almost 200 meters square, and has four bedrooms and three bathrooms. The Kalousek family previously lived in a two-bedroom flat in a pre-fabricated tower block. According to Kalousek, the rent is CZK 15,000 (approximately US$450). However, the market rent for such an apartment would be three or four times higher. Kasak will say that he initially bought the flat, for CZK 6.5 million (approximately US$200,000), because he thought his 12-year-old son was soon to move to Prague, but then decided not to. Kasak will add that the loss is insignificant to a businessman like him. “The loss for me is like when one worker does nothing for four days,” he will comment. [Mlada fronta DNES, 3/26/2002]