PZU to go ahead with privatization despite scandal

Zygmunt Kostkiewicz, chairman of insurance giant PZU, has insisted that the affair concerning former chairman of PZU Zycie, Grzegorz Wieczerzak, would not harm PZU's financial condition or halt its privatization. Speaking at a press conference yesterday, Kostkiewicz said that a reserve fund had been set up to cover any possible losses to PZU caused by Wieczerzak's activities. The creation of the fund was recommended by auditors Deloitte & Touche, who are examining the company's finances at the request of its new authorities. PZU's financial condition improved last year, with profits increasing by more than 60%, to zl.729.5 million. At yesterday's press conference, Kostkiewicz stated that PZU is still preparing to go ahead with its public offering this year. (Gazeta Wyborcza, p. 19; Rzeczpospolita, p. B4; Reuters) M.T.