KPO subsidies for the HoReCa industry. The Minister presented the results of the audit.

In early August, users of the X platform began posting examples of companies in the HoReCa (hotel and restaurant) sector that received KPO subsidies for projects such as company yachts, saunas, solariums, furniture replacement, and the purchase of a virtual shooting range. The media and politicians also began to cover the issue.

On Friday, the Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, provided information on the first stage of the audit regarding KPO funds for representatives of the HoReCa industry.

3,206 inspections of signed contracts were carried out, 39 of which were of an in-depth nature.

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- All contracts were reviewed and divided into two groups: those where everything appears to be OK and those where there is even a slight possibility that something is wrong - said the head of the ministry.

1,389 projects were referred for further inspection.

KPO: Controlling Expenditures in the HoReCa Industry

Irregularities were identified in seven projects out of 39 in-depth audits. "Sometimes, conflicts of interest occurred," said Pełczyńska-Nałęcz.

"This group included projects suspected of being politically motivated . In one case, it involved the family of a Civic Platform MP, and in the other, the family of a PiS local government official. Both projects proved to be compliant with the rules," she emphasized.

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KPO. Minister on the audit results

According to the head of the Ministry of Finance and PR, the audits revealed two main types of irregularities . The first was the inappropriate investment of funds obtained, i.e., actions inconsistent with the business plan.

- The example boat exists, but it does not float (...), this is clear proof that this action is not in line with the business plan - explained Pełczyńska-Nałęcz.

She emphasized that in such a case, the consequences would be "radical," meaning the person who bought the boat would not receive the money for it. However, if the actions were consistent with the business plan but slower than expected, the funds would not be withdrawn, only a warning and another inspection.

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The second category identified is a conflict of interest, where the grant should not have been awarded because the expert is related to the beneficiary. "If this is proven, the grant will not be awarded, and the case could even end up in the prosecutor's office," Pełczyńska-Nałęcz concluded.

She added that the inspections also apply to programme operators, with particular attention paid to potential conflicts of interest in the evaluation of projects.

- For now, we have identified one case of serious suspicion of a conflict of interest in each of two operators, the Kalisz Entrepreneurship Incubator Foundation and the Rzeszów Regional Development Agency, as we will of course continue with these inspections - said Pełczyńska-Nałęcz.

Controls on the spending of KPO funds in the HoReCa industry will continue.

KPO support for the HoReCa sector

The call for proposals entitled "Investments in the diversification of the HoReCa sector" was addressed to micro, small or medium-sized entrepreneurs operating in the hotel, gastronomy, catering, tourism and culture sectors affected by the COVID-19 pandemic in Poland.

The support was intended for investments, training or consulting, i.e. for example to cover the costs of purchasing machinery and equipment necessary to introduce new products/services to the market, construction works, investments related to the green transformation and the use of digital technologies, as well as the introduction of development services and improving employee qualifications (e.g. training or retraining of employees).

The first recruitment period for KPO support for the HoReCa industry began in May 2024 and was originally scheduled to run until June 5th of last year, but was extended. The second period began on July 18th of last year and was also extended several times. Ultimately, it ran until the end of October 2024.

The funding amount ranged from PLN 50,000 to PLN 540,000 (up to 90%) of eligible costs, with a maximum of PLN 600,000. Support was provided in the form of reimbursement of expenses from the grant portion of the KPO. At least 70% of all project expenditures had to be allocated to investment activities; a maximum of 30% could be allocated to training or consulting.

According to PARP data, 3,006 agreements were signed with entrepreneurs under the HoReCa program, funded by the KPO (National Industrial Reform Programme). As of the end of July of this year, entrepreneurs had received PLN 110 million of the total PLN 1.24 billion in support.

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