The Regional Public Prosecutor's Office in Warsaw has undertaken urgent investigations in connection with reports of gross irregularities in granting grants from the National Recovery Plan. The scandal that started on social media concerns spending millions of PLN for purposes of serious doubt, specified as luxury yachts, saunas, solariums or virtual shooting ranges, alternatively of supporting innovation and development. These measures were to enter the HoReCa sector, i.e. hotels, gastronomy and catering, to aid them rebuild after the COVID-19 pandemic. The prosecution's decision is simply a direct consequence to the increasing wave of criticism and public outrage, putting into question the transparency and efficiency of the usage of EU funds crucial for the Polish economy. The government assures that corrective action has already been taken, but the scale of the charges needs to be clarified in depth.
The Regional Prosecutor's Office is entering: What's under investigation?
On Friday, the Regional Prosecutor's Office in Warsaw officially announced that it would undertake ex officio investigations on irregularities in granting grants from the National Reconstruction Plan. Investigative activities are a direct consequence of widely commented on social media, followed by conventional media and political circles, examples of companies that received financial support from the KPO. The list of beneficiaries included entities that utilized public money to buy unusual, even luxury items specified as corporate boats, saunas, solariums, or even furniture replacements and the acquisition of a virtual weapon range. All these controversial grants afraid the HoReCa sector to be supported by the KPO. The intent of the prosecution is now to find whether public funds have been misused and whether the procedures for granting support have been lawful and transparent. This is simply a key step in explaining how millions of PLN from European funds were spent in specified a amazing way.
Government response: Recovery and appeals
The Ministry of Funds and Regional Policy (MFiPR) and the Polish Agency for Enterprise improvement (PARP) were already aware of possible irregularities. Deputy Minister Jan Krzysztof Szyszko informed at a press conference that information on problems had reached the hotel respective weeks ago. In consequence to these signals, even before the outbreak of the public scandal, concrete steps were taken. The president of PARP, Katarzyna Duber-Stachurska, was dismissed at the end of July, as Minister Katarzyna Pełczyńska-Nałęcz described as 1 of the corrective actions. Minister Pełczyńska-Nałęcz stressed on platform X that her ministry "checks and repairs all the dubious contracts" and ordered extended control. At the same time, she pointed out that the programme, which caused controversy, constituted only 0.6% of the full KPO and was aimed at tiny and medium-sized entrepreneurs who suffered as a consequence of the COVID-19 pandemic, which in her assessment justifies the nonsubjective of the programme. Prime Minister Donald Tusk firmly announced that he would not accept any waste of funds from the KPO, confirming that the ministry had known about the problems for any time now.
Grant mechanics and fresh checks
The process of selecting beneficiaries of investments from KPO in the HoReCa manufacture was multi-stage. Deputy Minister Szyszko explained that PARP, as part of an open competition, selected 5 regional operators. It was these operators who were liable for the final selection of beneficiaries among catering and hotel businesses. specified a model of fund distribution, although aimed at improving the process, raises questions about the effectiveness of supervision of regional actors. In consequence to increasing doubts, Krzysztof Gulda, acting president of PARP, was ordered to initiate further extended checks. The first institution to be subject to detailed verification is the Rzeszów Regional improvement Agency, which has the most reservations. These checks will be extended to all partners active in the distribution of funds in the following days. Gulda announced that the first results of these checks could be presented by the end of September, and surely in the 3rd 4th of this year. Where irregularities are found, it is possible to terminate the contract with the beneficiary and to reimburse all the funds received, which is simply a key consequence for companies which have misused the subsidies.
Political Storm: Opposition Strikes Government
The KPO grant scandal immediately became a fuel for criticism from the opposition. Marcelina Zawisza of the Left commented powerfully on the situation on the X platform, writing about "jachtas, saunas, ice cream machines, bridge games" as "a clear rip-off of public money to go on innovation". She besides stressed that "the drug mill was no longer enough", calling it a "scandal that the head is small". Daniel Obietek, with sarcasm, stated that the scandal “is getting on its feet more than the morning coffee.” Jacek Sasin of the PiS besides spared no words, speaking of "billion from the KPO intended for yachts for developers, business cabins on the water, luxury furniture in apartments for rent, solarium for pizzeria and diversification for kebab". He stated that it was a “unlike scandal” and “the proliferation of public funds on an unprecedented scale”, recalling that “EU loans will be repaid by all Poles!”. Sławomir Mentzen of the Confederacy summarized the situation, pointing to "1400 fresh and confirmed cases of government spending our money on stupidity", listing examples of voivodships and estimates of cases.
The issue of KPO grants for yachts and another controversial objectives is simply a serious test for transparency and accountability in the management of public funds. The decision of the Regional Public Prosecutor's Office in Warsaw to undertake verification activities and the extended checks announced by the PARP and the MFiPR are key steps towards clarifying the situation and bringing any blame. The results of these checks, expected by the end of September, will find the further destiny of the beneficiaries and may consequence in a return of millions of PLN. The full situation underlines the urgent request to strengthen the supervision of the spending of EU funds in order to guarantee that the National Recovery Plan actually serves the strategical improvement of Poland, not immediate and dubious objectives. The society and opposition closely follow developments, awaiting full transparency and effective action by the authorities in defence of public money.
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Investigators entering KPO. Millions for yachts and saunas? Who will be liable for this!
