PZU must pay zł. 14 million for breach of contract

The court of arbitration has ruled that insurer PZU Życie will have to pay over zł. 14 million to Raiffeisen Ost Invest, for breaking its contract for the purchase of 15% of NFI Progress investment fund. "We are waiting for the money," said Witold Szymański, chairman of Raiffeisen Ost Invest. The costly contract was signed by PZU Życie's former head, Grzegorz Wieczerzak, who faces charges of acting to the detriment of the company. Under the earlier agreement with Raiffeisen, PZU Życie was to take over the former's stake in Progress, as this would give it more say in the choice of the investment fund's authorities. Because of legal procedures it was to receive the shares [and votes] before the voting and finalize the deal after being given the green light by the Securities and Stock Exchange Commission (KPWiG). After having chosen its own people to sit on the fund's board, it then refused to complete the transaction. (Puls Biznesu, p. 7) J.K