Corrupt fund managers shock pension industry

KNF is now also conducting a wide-ranging probe into suspected insider dealing and share price manipulation by top-level staff at Skarbiec, and is considering recommending criminal charges to the prosecutor's office against the company and one of its fund managers. The new investigation is a direct result of an earlier KNF probe that led to the slapping of a fine of zl.500 million on Skarbiec two months ago for endangering the interests of its clients. At the time KNF gave no details, but documents obtained by one newspaper reveal what KNF officials describe as a shocking practice that was accepted by the company's executive and supervisory boards. "This is the first such case in the Polish pension industry," says Lukasz Dajnowicz, KNG spokesman. (Puls Biznesu, p. 1, 4, 5) R.M.