D&T highlights Mostostal Zabrze's debt problems

In its annual report for 2002, Deloitte & Touche (DT) has warned that the main source of capital for construction company Mostostal Zabrze, is its liabilities due to both individuals and banks. According to the auditor, Mostostal Zabrze's losses in 2002 were zł. 127 million, or 70% more than could be deduced from the company's quarterly reports. At the same time, however, the company's sales appear to be 15% higher than initially reported. Commenting on the constructor's situation, D&T wrote, "The company is no longer capable of securing alternative sources of capital and bank guarantees that would secure its contracts." According to the auditor, Mostostal Zabrze may soon not be unable to pay its liabilities. In the first half of 2002, however, the company had no problems with paying its debts. (Parkiet, p. 4) J.K.