Polish police raid companies linked to Ciech privatisation

By bne IntelliNews April 6, 2016

Polish anti-corruption police force CBA raided investment firm Kulczyk Holding, as well as Ciech, on April 6, as part of an ongoing investigation into the 2014 privatisation of the chemicals company.

The ruling Law and Justice (PiS), which took power in November, has vowed to scrutinise privatisation deals struck by the previous Civic Platform (PO) government. The statist party insists the state should not have sold stakes in important companies.

Houses belonging to Ciech executives were also searched during the latest action. The raids come around six months after a high profile operation connected to the case carried out at the offices of the Warsaw Stock Exchange. That action took place just nine days before the general election at which PiS won a large majority.

KI Chemistry, a unit of Kulczyk Holding, acquired close to 40% in Ciech in 2014 for PLN619mn (€149.5mn at the time). KI Chemistry was the sole bidder in the process. Allegations quickly surfaced of opaque negotiations between then deputy treasury minister Rafal Baniak and Kulczyk representative Piotr Wawrzynowicz.

In October, the CBA questioned Pawel Tamborski, who was CEO of the Warsaw Stock Exchange at the time. Tamborski, who has since left the bourse, was another deputy treasury minister at the time of Ciech’s privatisation. CBA launched the investigation in the aftermath of the so-called Waitergate scandal, in which a number of private conversations between politicians and businessmen were covertly taped in a Warsaw restaurant.

A Kulczyk Holding spokeswoman told local media the CBA entry was mistargeted; KI Chemistry’s documents relating to the privatisation are at the company’s headquarters in Luxembourg, she claims.

Related Articles

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

Speculation over a second downgrade grows as S&P drops outlook on Polish economy

Speculation that Poland could suffer a second downgrade of its sovereign rating at the end of the week intensified on January 10, as Standard & Poor’s lowered its estimates on economic growth. ... ... more

Polish government offers temporary olive branch in parliament standoff

Polish media were temporarily readmitted to parliament under the old lax rules on January 5. The ruling party Law and Justice (PiS) had sought to place restrictions on reporting in December, ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss