ADtranz sues PKP for unfulfilled locomotive contract

Train engine manufacturer ADtranz Pafawag is suing Polish State Railways (PKP) for failure to carry out a zl.600 million contract for the delivery of locomotives. PKP will likely countersue, demanding return of zl.60 million which it had already put down on the contract. So far, neither of the parties has publicly presented its claims clearly, so most of the information on the ill-fated contract comes from a Supreme Board of Inspection (NIK) audit of PKP. In its report, NIK charged PKP with financial negligence, of which one example was spending zl.95 million on the ADtranz contract without having received a single locomotive. Of that amount, zl.64.48 million was spent as payment for work performed by ADtranz. NIK claims that the terms of the deal were unfavorable to PKP and the company then failed to execute those conditions of the agreement which would have made it possible to recover some of the money lost due to ADtranz's failure to deliver as agreed. (Puls Biznesu, p.5) T.J.