PZU denounces Arthur Andersen - a distraction tactic?

On Wednesday PZU submitted a formal letter to inform the prosecutor about a crime committed by the auditor, who assessed the financial reports of PZU Życie between 1998 and 2000. The letter relates to the allegation that the auditor, which in that period was Arthur Andersen, did not inform the PZU board of serious violations. The auditors claim, in a statement recently released that the management, the supervisory board, as well as the owners, were always informed about all activities of PZU Życie and the possible consequences of their actions. The auditing company has offered to make public the documents and facts from the period if PZU agrees to this. Recently Ernst & Young, which has taken over Arthur Andersen, discovered a PZU contract with investment bank HSBC signed by the current head of the insurer Zdzisław Montkiewicz, which envisaged acquiring shares from minority shareholders. Such a contract was a surprise to the State Treasury, which stated that the company president cannot take over the competencies of the owner. The PZU supervisory board has decided to annul the contract. (Gazeta Wyborcza, p. 27, April 19-21) A.K.