Aero Vodochody committed EU subsidy fraud of grand scale.

Aero Vodochody received EU subsidy where the amount exceeded $ 4 million.

Aero Vodochody stated that they will use the funds for R&D. Instead they used the funds for purchase of assembly lines for Rear Fuselage II and Cargo Ramp for Embraer KC-390, a new military cargo plane produced in Brazil, where Aero is one of risk sharing partners.

The assembly lines were designed and built by UK companies Hyde Ltd. and Kaman UK Ltd. and installed at Aero factory as a turnkey operation.

Furthermore, the funds were partially embezzled by criminal gang of employees involved in illegal manufacturing. The gang was led by VP Josef Kadlec (P. Eng) and was active for 15 years.