Treasury lost millions during privatization of medium-sized enterprises

The Supreme Board of Inspection (NIK), which examined the privatization process of 13 medium-size companies between 2001-2003, has discovered that the companies were sold prices below their true value. NIK pointed out numerous mistakes, which took place during the privatizations, like unclear privatization goals, accepting dubious investors and the lack of effective control over the process by the Treasury Ministry. The valuation of the privatized companies was based on the wrong assumptions, which led to estimating their price at zł.55 million below their real value. The inadequate control over the privatization exercised by the State Treasury allowed investors to withdraw around zł.272 million from the companies. NIK has informed the Justice Ministry, the Internal Security Agency (ABW) and the Central Bureau of Investigation (CBŚ) about the irregularities and, as Gazeta Wyborcza learned, investigations are already on the way. (Rzeczpospolita, p. B2; Gazeta Wyborcza, p. 15) E.B.