ZUS crackdown sends company officials to prison and persuades others to pay

The first prison sentences as a result of lawsuits filed by the Social Insurance Company (ZUS) against firms that have defaulted on paying social insurance premiums have been handed out. ZUS is slowly getting tough with those that evade paying premiums as shown by the record number of arrears that have been paid by delinquent firms this year. Of the zl. 3.8 billion in premiums outstanding, ZUS has collected zl. 850 million. In some case ZUS has filed bankruptcy proceedings or imposed restrictive sanctions on the management boards of companies that have substantial arrears. ZUS says the campaign is working. Collection rates are at a record high with social insurance premiums in the first half of this year zl. 6.9 billion higher than the first half of last year. Also of the 160 inspections of companies that ZUS had promised, 145 have already been conducted sending a clear signal that the lax old days are gone. According to ZUS president Leszek Gajek, the restrictive sanctions could be used against those that owe ZUS the most, the state railways and mines. Many analysts however, are skeptical as to whether Gajek would file a bankruptcy suit against the state-owned giants. (Prawo i Gospodarka, page 1, 4, 7)