UOKiK notifies prosecutor's office about possible irregularities in Gent Holding

 The Office of Competition and Consumer Protection (UOKiK) notified the prosecutor's office of possible irregularities related to the activities of companies from the Gent Holding group. The office is concerned about the transfers of funds paid by clients in the group. As explained in the announcement of the UOKiK, the companies belonging to the holding offer investments in premises for rent in private dormitories.

It was reported that in March 2019 the office received a signal describing possible irregularities related to the activities of the Gent Holding group. It pointed to the high costs of operating companies, including the cost of remuneration and maintenance of headquarters, while low sales. In the opinion of the office, this may indicate financing of current operations with debt and pose a threat to investors' funds.

The Office analyzed the financial statements of Equal Real Estate for 2018, the conditions for issuing corporate bonds and the explanations of this company. The office's doubts - as stated - were raised by the fact that it accumulates customer funds in the form of loans, and then grants them further, unsecured loans to other entities from the Gent Holding group. According to UOKiK, this may be a restricted activity for banks.

(PAP)