EMPLOYMENT: KPO for HoReC frozen. The D.A. enters, the manufacture trembles for billions.

The hotel-gastronomy, tourism and cultural sector in Poland is at the heart of the financial earthquake. Polish Agency for Enterprise improvement (PARP) suspended payments from the National Recovery Plan (KPO)which were expected to be a rescue and improvement impulse for thousands of companies. The reason is alarming reports of possible abuses, including the usage of public money on luxury yachts alternatively of actual growth. This decision means that over PLN 1.1 billion, which were to go to entrepreneurs, is now frozen, putting many companies on the brink of survival.

The situation is dynamic and is highly worrying throughout the sector. The minister of funds immediately reacted, announcing detailed checks on each contract. Although PARP ensures that the program has not been cancelled and money will be unlocked after verification, for many companies this means dramatic delays and liquidity problems. An investigation conducted by the European Public Prosecutor's Office has besides appeared on the horizon, which adds to the atmosphere of uncertainty and makes the future of many Polish companies question.

Why is KPO stuck? Yacht scandal and suspected abuse

The decision to suspend payments from KPO to the HoReCa, tourism and culture sector is simply a direct consequence of media reports and signals about possible irregularities. Initially, the program was to be a powerful capital injection – total PLN 1.24 billion has been allocated to support companies that have faced the consequences of pandemics in fresh years and rising costs. To date, within the framework 3005 signed contracts, only about PLN 110 million. The remaining funds, or nearly PLN 1,13 billion, are now frozen.

The main charge that led to this situation is the alleged Granting for non-development purposessuch as buying luxury yachts. specified reports have triggered an immediate reaction of the Ministry of Funds. The representatives of the PARP stress that the intent of the suspension is to carefully check the correctness of accounts and to safe public money against possible abuses. However, this puts thousands of honest entrepreneurs in a hard position, who carefully prepared the proposals and hoped for swift support to proceed investing and to keep jobs.

Checks alternatively of transfers. What does that mean for entrepreneurs?

The announcement of thorough checks on each contract is simply a real test of patience for businesses in the HoReCa and tourism industry. alternatively of promised transfers, companies must now prepare for detailed verification of documentation and to prove that the appropriations were utilized as intended. PARP ensures that the program has not been cancelled and payouts will be gradually unlocked after a affirmative verification. However, if irregularities are detected, contracts will be terminated and subsidies will should be reimbursed, frequently with interest.

For many tiny and medium-sized enterprises that have invested their own funds, counting on a refund from KPO, this situation is dramatic. These companies, faced with inflation, advanced energy prices and shortages of workers, face serious liquidity problems. hold in payment of respective 100 1000 or even respective million zlotys may mean a deficiency of funds for current fees, wages or repayment of liabilities. In the worst case scenario, the deficiency of prompt unblocking of funds can lead to insolvency and bankruptcyWhich would be a devastating blow to the rebuilding sector.

The European Public Prosecutor's Office is entering. Is this the beginning of a grand investigation?

The gravity of the case was highlighted by the engagement of the European Public Prosecutor's Office (EPPO), which launched its own investigation into possible abuses. This is simply a signal that the scale of the problem may be much higher than initially assumed and concerns the usage of EU funds. The engagement of the EPPO means that the case has an global dimension and can lead to serious legal consequences for those liable for possible fraud. The European Public Prosecutor's Office is an independent body of the European Union liable for the prosecution of crimes affecting the EU's financial interests, including fraud involving EU funds.

The presence of EPPO in the background increases the atmosphere of uncertainty throughout the industry. Honest entrepreneurs, who hoped for funds from the KPO, fear that protracted controls and afflicts around grants can undermine the reputation of the full sector and hinder access to future support programmes. This is besides a blow to trust in the institutions liable for distributing EU funds. The manufacture is waiting for a fast and transparent explanation of the situation so that honest beneficiaries can receive the support they deserve without further delay.

Liquidity crisis and bankruptcy spectrum. How will the manufacture survive?

For many hotels, restaurants, tourist agencies and cultural institutions, halted funds from the KPO is simply a dramatic script that can affect their continued functioning. The program, which was to be a key improvement impulse after hard years of pandemic, turned into a transparency and integrity test the full sector. Entrepreneurs who have invested in modernization, purchasing fresh equipment or digitization, based on the promised grants, abruptly found themselves trapped in the financial trap. If the measures are not rapidly unlocked and the verification process continues, many companies can find themselves on the brink of bankruptcy.

This is not just a substance of bureaucratic procedure or administrative delay. This is simply a real conflict for the endurance of hundreds, and possibly thousands of companies, which employment tens of thousands of Poles and are a pillar of local economies, especially in tourist regions. The future of the HoReCa manufacture in Poland now depends on the velocity and transparency of PARP activities and the results of the European Public Prosecutor's Office investigation. Honest entrepreneurs request a clear signal and fast access to frozen funds to proceed their activities and avoid financial disasters.