Government to debate two oil privatization deals today

The government will today hold crucial discussions on the privatization of two key elements of the oil sector, PKN Orlen and Rafineria Gdanska (RG). T he discussions will center on which of two rival bidders, MOL of Hungary or OMV of Austria, should be sold a 17.58% stake in PKN Orlen, and on whether to go ahead with the sale of a 75% stake in RG to a consortium led by Brita in's Rotch Energy. Controversy surrounds the two deals as a result of radic al moves by Treasury Minister Aldona Kamela-Sowinska, who dismissed two sup ervisory board members and two presidents of the governmental agency respon sible for the privatization of the oil sector, Nafta Polska. The reasons for the dismissals were never given. Although Rotch Energy has offered around $ 300 million for the stake in RG, as well as an attractive investment package worth several hundred million dollars more, the company has not presented a dequate guarantees for financing the deal. In addition, to make the transac tion possible the governmental privatization program will have to be change d, since the British firm is not a sector, but a financial, investor. (Rzec zpospolita, p. B2) A.Z.