PRAGUE (Thomson Financial) - Czech government party chief Jiri Cunek will return to the post of deputy prime minister and minister for regional development after he resigned from both in November last year over corruption allegations, Czech Prime Minister Mirek Topolanek said yesterday.

Cunek, the leader of junior government party Christian Democrats, was investigated for drawing unjustified social benefits and housing allowances at a time when he deposited 3.5 million Czech crowns into personal bank accounts, and for allegedly taking a bribe while mayor of a Czech town.

However, he has been cleared of the allegations and demanded a return to the government despite protests by the Greens, another coalition party, some of whom threatened to abandon the government if he returns.

Prime Minister Topolanek said Cunek and Greens' representative Foreign Minister Karel Schwarzenberg, who demanded that Cunek provides more evidence that he was innocent, found an agreement under which Cunek will allow an audit of his personal finances.

Cunek's return is expected to ease concerns that the government could collapse while it tries to implement key economic reforms.

jana.mlcochova@thomson.com +420 222 191 108

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