From the latest study of the ultimate Chamber of Control (NIK) 1 of the most excruciating financial matters of fresh years emerges. The centre of attention is the Profeto Foundation, headed by the priest Michał Olszewski, which received almost PLN 100 million from the Justice Fund for the construction of an aid centre for victims of crimes called "Archipelag". However, the NIK study reveals that this investment was implemented in gross violation of the law, and the full amount which should be returned to the state budget is over PLN 56 million.
Profeto and the Justice Fund: how did nearly PLN 100 million get transferred?
The Profeto Foundation became 1 of the main beneficiaries of the Justice Fund grant at the time erstwhile the hotel was headed by Zbigniew Ziobro. It was initially awarded PLN 43 million, but in time it increased to almost PLN 100 million. Objective: to build a centre for crime victims.
In 2023, the case went under the scrutiny of the D.A. and the fresh management of the Ministry of Justice. Both Fr Olszewski and erstwhile Deputy Minister Marcin Romanowski heard the allegations. Law enforcement authorities considered that the Foundation should return over PLN 66 million spent on construction.
Report NIK: gross unprofitableness and self-employment
NIK carried out an inspection covering the years 2021 to 2024. The introduction of the study already states that "investment is simply a flagrant example of a breach of the applicable law and of unprofitable public spending".
Examples of irregularities:
- The Foundation did not have the right to the full construction site. The property became the joint ownership of the priests of the heart.
- Construction was carried out without an approved construction project, which constitutes a violation of the Construction Law.
- The deficiency of sewerage will prevent the building from giving up before 2030, meaning that the purchased equipment for millions of PLN will be consumed before it is used.
False invoices, inflated costs, lost equipment
NIK has documented:
- False invoices for a full amount of PLN 7.2 million for works that have never been done.
- IT, multimedia and construction equipment for about PLN 5 million, which is missing.
- The costs of temporary barracks are increased 10 times (560 1000 PLN alternatively of 60 1000 PLN).
- Temporary barrier for PLN 305 thousand, even though its marketplace value was about PLN 75 thousand.
Selection of the contractor: competition set, illegal contracts
Tiso, the main contractor, was selected in the tender. The offer featured identical typos, and the persons in the documentation of 3 companies were the same. Tiso's boss, Peter W., had a criminal record, which should regulation out his involvement. Nevertheless, the foundation signed a contract.
Following the break of cooperation with Tiso, Profeto commissioned the continuation of works by Budocomplex, whose costs increased by over PLN 14 million through unauthorised annexes to the contract.
Lack of supervision, equipment disappearances and million-dollar losses
Framesound, acting as a subcontractor, was to equip the facility with IT equipment and recording studios. Instead:
- She bought the equipment for hundreds of thousands of zlotys that never went into the building.
- The announced integration projects were not implemented.
- The Foundation could not explain where the property worth nearly PLN 5 million was located.
Conclusions and further legal steps
The ultimate Chamber of Control assessed that the Profeto Foundation was unprepared by staff, organizationally and financially to carry out specified investments. The deficiency of supervision, the inefficiencies and the self-government of construction are only part of the charges.
Both national courts and global courts (including the European Court of Auditors) have repeatedly stressed that public funds must be spent in accordance with the principles of transparency, economy and efficiency. Violation of these rules should consequence in the immediate investigation of the reimbursement of the funds and the criminal and civilian liability of the persons involved.
Conclusions and possible consequences
The NIK study sheds light on the gigantic scale of unprofitability, deficiency of supervision and possible crimes. The investigation is conducted by the prosecution, the charges have already been made by Fr Olszewski and erstwhile Deputy Minister Marcin Romanowski.
If the allegations are confirmed, not only criminal liability but besides civilian proceedings for reimbursement of public funds will be possible. The case may besides be referred to the Court of Justice of the EU, which has repeatedly expressed the request for effective management of EU and public funds (cf. the CEU judgement of 7 September 2006, C-310/04).
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The “Archipelago” of the Profeto Foundation on aground. NIK reveals the magnitude of irregularities on respective million