Report on the General Meeting of ČKA, or "Quo vadis, Chamber of Architects, in 2019?"

Ladies and gentlemen, colleagues, architects.

Given that the Chamber's press release from April 16, 2019 describes the holding of an evidently completely different general assembly (GA) than the one that took place in Brno, I offer a different perspective from a direct participant.

Approximately 3% of Chamber members attended the GA. For many years, this represents one of the lowest attendances.

I ask you to reflect on the future of the Chamber, which we pay contributions to (by the way, one of the highest in the chambers of the Czech Republic), in anticipation of their valuation for the further activities of architects and support for the public interest. After all, the GA in Brno on April 13, 2019, voted, among other things, to increase the contribution to approximately 8,000 CZK, with a deficit in the Chamber’s account (rounded to) 12 million CZK (!).

I. Introduction

The Czech Chamber of Architects (ČKA) is experiencing its first deep crisis and catastrophic economic situation since its establishment. According to the supervisory board's audit finding from February 25, 2019 (see: https://www.cka.cz/cs/cka/o-komore/valna-hromada/valna-hromada-cka-v-roce-2019)
it was documented in relation to the board at the GA:

• repeated violations of obligations in managing entrusted property,
• misuse of ČKA's financial resources,
• repeatedly false information given to the general assembly regarding the Chamber's management,
• damage caused by the Chamber's statutory bodies amounting to approximately 12 million CZK,
• which results in personal criminal and disciplinary responsibility for the elected officials…)

II. GA ČKA Facts

The number of participants in the GA at the time of commencement at 9:45 was 85, the first vote on acclamation was 30/47/8 (for/against/abstained).

In the elections to the Chamber's bodies, (according to the number of ballots) a maximum of 144 members voted. (For comparison, ČKA currently has 3,840 authorized persons). A significant portion of members, however, participated only in the voting.

At the end of the GA after 20:00, approximately a third of those present remained, see voting on the GA resolution at a ratio of 50/1/1.

Of those, 37 members of the Chamber's leadership (DR + Chair + Sts + authorization councils) were present along with their supporters, mainly from working groups, sitting together in the hall, (voting uniformly during acclamation) about 25–30.

GA ČKA April 13, 2019 Brno, attendance around 18:00, author of the press release

This means that the attendance of "ordinary" independent, independently thinking architects was realistically (excluding the elections) a maximum of 40–50 people.

The GA did not accept the acclamation vote 30/47/8 – using yellow ballots, to show who voted how within direct democracy, (further voting was done secretly, using voting devices).

The GA began voting on the dismissal of Chairman Ivan Plicka from his position as chairman of the board; during the voting, he was called from the floor to resign, to which he complied. He remained a member of the board. The voting was not completed… A scapegoat, as personal responsibility is borne by all board members, including those from the past three years.

The GA did not accept the proposal to dismiss the entire board 39/57/22.

The GA did not accept the proposal for a forensic (deep) audit for the past three years 58/45/9 (The proposal for a change of agenda at the GA must have a 3/5 majority of all present, and only then can it be voted on by simple majority).

The GA did not accept the proposal to abolish the ČCA – Czech Architecture Award 38/64/11.

The GA voted to increase membership fees from 6,000 CZK to 7,795 CZK, voting 45/30/4.

The GA voted to increase the time compensation for board members of ČKA and working groups from 300 CZK to 500 CZK, voting 35/19/11, (around 19:00). According to materials for the GA, there are an incredible 80 architects as members of working groups (some names appear in multiple groups). It is worth mentioning that these are minimally taxed fees with practically zero overhead costs. So, in principle, a good earning…

The GA voted on the budget for 2019 as balanced,?, amounting to 26 million CZK, voting 41/3/1.

The GA was informed, upon a question from the floor, that the general partner of ČCA 2019 is Central Group a.s., (the contract was signed two days before the GA for a sponsorship amount of 1 million CZK)

The proceedings of the GA were conducted in the spirit that all "bad" is due to the dismissed manager, against whom a criminal complaint was filed on March 18, 2019. On the contrary, the board and supervisory board reportedly had full confidence in her for the last three years and let themselves be "led by the nose"... As a victim.

At the GA, the supervisory board presented a series of slides marked with the heading: "Findings that the damage was caused by the irresponsible actions of the former director…"

It is worth mentioning two contradictory contributions from the floor of the GA, as follows:

Arch. Martin Peterka, founding member of ČKA:
"…according to the Chamber's rules, the board is responsible for managing the Chamber, while the supervisory board oversees the activities of all the Chamber's bodies, thus these bodies bear the key responsibility for the situation that has arisen. How can we trust the board’s and supervisory board’s reports today, according to which something bad has been happening in the Chamber for the last three years when they didn't report it last year or the year before? Either they failed back then, or they are failing today. Their credibility is compromised…"

(I apologize for the further quotes without recording, with potential inaccuracies… while maintaining the essence of the message:
Arch. Ladislav Lábus, Chairman of the ČKA Authorization Council:
"…let's not make a drama out of the situation that has arisen. If you are in business, you know that sometimes there are missing funds in the account, and it will get resolved somehow afterwards. A forensic audit is a very strong and inappropriate tool in this situation…."

The first opinions about the manipulative moderation of the GA, incorrect documents for the GA, and voting assessed in violation of the Chamber's rules (missing 3/5 voting majority of those present in the hall) have already appeared. Furthermore, questioning the accounting closure and auditor's report…

III. For reflection

• Is it legitimate and fair for the activities of 3,840 authorized architects to be regulated by approximately 100 participants of the ČKA GA? Did a fraction of members, mostly officials of the Chamber, decide over key matters at the end of the GA, around 20:00 in the evening?
• Is the Chamber still ours, or has it already been privatized by "them"?
• Is the current leadership of the Chamber somewhat of a private company, into which we pour our (now increased) contributions, and they do with them as they wish? The GA in the current system does not influence anything.
• Is it legitimate for the Chamber's rules to require the submission of a change to the GA agenda at least 30 days prior to its holding, while the materials for the GA, including the agenda, are sent out by the Chamber’s leadership no later than 10 days before the event? Is this not a small safeguard to ensure that nothing can be influenced or changed?
• Are those who voted against the board's dismissal and the preparation of a forensic audit at the GA not co-conspirators?
• Why does the supervisory board not respect the presumption of innocence and designate, without proper investigation (now by the authorities involved in criminal proceedings), Marie Špačková as the culprit at the GA?
• How can we teach our students ethics and morals in practicing the profession of architecture when the Chamber is led by individuals who demonstrably do not adhere to these rules?
• Is the service provided by ČKA adequate compared to the level of contributions? (I recommend comparing with ČKAIT, contribution 3,000 CZK, including (!) insurance up to 250,000 CZK in damages, and, for example, the magazine Z+I).
• Is it even ethical in this situation to increase time compensations for members of working groups to 500 CZK and raise membership fees from 6,000 → 7,795 CZK? In conjunction with the catastrophic loss caused by the Chamber's leadership over the past three years?
• Do we realize that in many regions of the Czech Republic, an hourly rate of 500 CZK for practicing architects is an unattainable dream?
• If we have 80 remunerated architects in ČKA working groups, do we receive adequate outputs from their activities?
• Is it correct that the budget of the Chamber for 2019 is approved by about fifty members present in the auditorium at around 20:00 in the evening?
• Is it right to associate the name ČKA + ČCA with the name of the large developer Central Group a.s., a firm with a very problematic reputation?
• How will such a partnership further damage the Chamber's image? Do we want this?
• Are we aware that, based on several previous indications, there is a strong generational wave of young practicing architects who programmatically do not want to have anything to do with ČKA and are rationally seeking an alternative professional "modus vivendi"?
• After exhausting all possibilities for an amicable resolution, can we still hope that a criminal complaint will not be filed against the statutory bodies of the Chamber, if it has not already been done?
• A disgrace to the profession of architect? Damage to the reputation of the ČKA built over many years? Damage to the reputation of all other self-governing chambers?

IV. Conclusion

The supervisory board’s audit finding from February 25, 2019 concludes, among other things:

• The errors mentioned in the audit finding are of a nature where their consequences are serious, irreparable facts,
• The organization of another annual ČCA is in great danger, as we already know that the implementation of the competition cannot proceed without the need to borrow money from ČKA, which has none, as its savings have been completely exhausted,
• Moreover, besides ČCA, the exhaustion of financial reserves has also put ČKA itself and its sovereignty at risk, as it cannot cover any other unexpected expenses anymore …(!)

Ladies and gentlemen, authorized architects, do we really not care?

Josef Smola, practicing architect, teacher, and publicist, previously the chairman of the Chamber's Disciplinary Court for several years, April 23, 2019 in Prague.