NIK aims to clean up Poland's largest vacuum cleaner manufacturer
Each year it produces 1.2 million vacuum cleaners and 3 million engines. Perceived to be one of the best companies in Poland, Zelmer reported net profit of zl. 26 million in 1997. However, last year, members of the Zelmer Solidarity labor union accused management of the illegal privatization of the company. Several small companies were created within Zelmer and executives from the mother company were appointed as presidents of the subsidiaries. After a six-month investigation, NIK announced its findings yesterday. According to NIK, the management's illegal actions led to the loss of zl. 23 million. NIK officials submitted a motion to the Treasury Minister to remove the management and notified the Prosecutors' Office. Zelmer president Boguslaw Madera denies any wrongdoing. He said the privatization was executed legally and claimed the other NIK accusations are groundless. (Rzeczpospolita, page 2)