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Audits reveal major financial losses in Polish state-owned firms

28.11.2024 12:00
State-owned companies in Poland suffered major financial losses due to unjustified expenditure and poor investment under the country's previous government, according to a series of audits commissioned by the new administration.
Minister aktywów państwowych Jakub Jaworowski podczas konferencji prasowej w siedzibie MAP w Warszawie
Minister aktywów państwowych Jakub Jaworowski podczas konferencji prasowej w siedzibie MAP w WarszawiePAP/Radek Pietruszka

Announcing the findings on Wednesday, State Assets Minister Jakub Jaworowski described the scale of irregularities as "beyond expectations."

The audits, conducted by independent external firms adhering to corporate governance principles, have led to significant consequences.

Nearly 100 notifications have been filed with prosecutors, and around 95 state-owned company board members have been denied a clean bill of health due to allegations of financial mismanagement.

Jaworowski said that many state-owned companies are now in a difficult financial position due to decisions made by previous management boards.

The resulting financial instability has negatively impacted employees and local communities.

"The financial deterioration caused by misguided decisions and the exploitation of these companies for personal or political gains is deeply concerning," the minister said.

Minister aktywów państwowych Jakub Jaworowski podczas konferencji prasowej w siedzibie MAP w Warszawie Jakub Jaworowski (pictured): "The financial deterioration caused by misguided decisions and the exploitation of these companies for personal or political gains is deeply concerning." Photo: PAP/Radek Pietruszka

The audits identified recurring issues, including large-scale investments that resulted in significant losses and improper use of company resources for personal benefit, according to Jaworowski.

He also pointed to "the misuse of state-owned companies for political purposes."

In response to the findings, the Ministry of State Assets has proposed reforms aimed at improving oversight and governance.

Jaworowski announced the creation of a Code of Good Practices for State Ownership Supervision, which will establish modern, transparent standards for managing state-owned companies and their subsidiaries.

The code addresses collaboration between company bodies, remuneration policies and qualification procedures for key positions.

 Jakub Jaworowski The new code of best practices for state-owned companies is designed to prevent the misuse of state-controlled firms for political purposes, according to Jaworowski. Photo: PAP/Radek Pietruszka

Additionally, work is underway to revise regulations governing the management of state property to "further professionalize oversight."

Jaworowski said that these measures are intended to prevent the recurrence of the irregularities uncovered by the audits.

The ministry’s efforts are ongoing, with audits still underway in some companies due to the complexity and scale of the issues identified, he told reporters.

(rt/gs)

Source: IAR, PAP