PZU and PZU Zycie heads undermine shareholders' trust

The presidents of Poland's largest insurer Powszchny Zaklad Ubezpieczen S.A. (PZU) and its life insurance subsidiary PZU Zycie, have lashed out at PZU shareholder Eureko for leaking to the media a report by the Supreme Board of Inspection (NIK), which criticizes the two executives. NIK inspectors charge PZU head Wladyslaw Jamrozy and PZU Zycie president Grzegorz Wieczerzak interfered in the privatization of PZU and in its preparations for its initial public offering (IPO). Jamrozy is said to have played his own game against the future shareholder of PZU, BIG Bank Gdanski. His actions had been beneficial financially for PZU, but they undermined shareholders' trust. Jamrozy and Wieczerzak defended the business deals they had made, saying PZU will earn more adding, "[This is a] surprising attempt to drag NIK into suspicious games." They suggested that Eureko, which holds a 20% stake in PZU, leaked the report in order to lower the value of the company and increase its stake at a low cost. Eureko spokeswoman Lorrie Morgan said these allegations are "absolute nonsense." (Gazeta Wyborcza, page 25)