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Former govt under scrutiny over COVID-19 PPE purchases

Audit over faulty COVID-19 PPE purchases prompts legal action against top politicians

17:14, 21.03.2024
  fb/jd;   PAP
Audit over faulty COVID-19 PPE purchases prompts legal action against top politicians Poland’s Supreme Audit Office (NIK) announced on Thursday that it will be sending legal notices to the prosecutor’s office against former government officials including former Prime Minister Mateusz Morawiecki along with representatives from companies involved, who were directly involved in the procurement process of personal protective equipment (PPE) in response to the COVID-19 pandemic.

Poland’s Supreme Audit Office (NIK) announced on Thursday that it will be sending legal notices to the prosecutor’s office against former government officials including former Prime Minister Mateusz Morawiecki along with representatives from companies involved, who were directly involved in the procurement process of personal protective equipment (PPE) in response to the COVID-19 pandemic.

Former Polish Prime Minister Mateusz Morawiecki. Photo: PAP/Mateusz Marek
Former Polish Prime Minister Mateusz Morawiecki. Photo: PAP/Mateusz Marek

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During a press conference, Janusz Pawelczyk, the acting director of NIK’s Białystok branch, revealed the results of an audit regarding the PPE purchases made in 2020 and 2021. The findings criticized Morawiecki’s office for the wasteful, unreliable, and misdirected expenditure of approximately PLN 200 million (EUR 46.4 mln).

Pawelczyk indicated that legal notifications stem from individuals “whose signatures appear on documents and who took direct part in the entire process.”

He referenced Article 231 of the Penal Code, which concerns public officials acting against public or private interest, suggesting that the implicated actions could lead to up to three years of imprisonment.

Paweł Tołwiński, Deputy Director at the Białystok NIK branch, provided further details, noting that in April 2020, Prime Minister Morawiecki issued orders for state-owned companies KGHM and Grupa Lotos, as well as the Industrial Development Agency, to purchase PPE, amounting to over PLN 500 mln (EUR 116 mln) in total expenditures. These actions, according to Tołwiński, were deemed wasteful and misdirected by NIK, particularly the funds spent on contracts with KGHM and Grupa Lotos.

No experience in trading medical articles

The Ministry of State Assets had directly instructed these companies on what and from whom to buy, ensuring the certified quality of the products. However, the audit found that the international trading experience of KGHM and Lotos was disregarded, as they were merely acting under pre-defined terms without genuine involvement in the decision-making process.

Further scrutiny revealed that neither KGHM nor Grupa Lotos had prior experience in trading medical articles, including PPE. The Ministry of Health, which had the most relevant information on the needed protective materials, was not involved in the procurement process.

The suppliers, two Polish entities identified by the Ministry of State Assets, had no previous medical trading experience as well. One of the companies, formed shortly before the pandemic with minimal capital and staff, was selected after posting on social media about their import experience from East Asian markets.

Price discrepancies

The report also highlighted significant price discrepancies and quality issues with the purchased PPE. For instance, masks bought by KGHM were significantly more expensive than those purchased by the Industrial Development Agency.

The audit further discovered financial discrepancies, where the Prime Minister’s office did not fully reimburse Lotos for the PPE purchases, resulting in a substantial loss for the company and unresolved claims against the suppliers.

Following the 2023 parliamentary elections in Poland, the new government has initiated a thorough review of the decisions made by its predecessors during their tenure (2015-2023).

The new coalition government has so far created three investigation committees to look into the purchase of the Israeli spyware program called Pegasus, the purchase of millions of mail-in ballots that were never used, and the supposed sale of Polish visas to foreigners.
 
 
 
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źródło: PAP