IN PZU the opening audit of the activities of people supervising and managing the Group in 2016-2024 has been completed. The total damage was estimated at PLN 700 million. “Top the list of irregularities include the purchase of the bankrupt company Ruch SA for almost PLN 270 million by PZU Group companies, support for the ruling party's media initiatives and the services of 'management board advisors' who usually did not even have a defined scope of duties and after their services there is no trace, although they cost the PZU Group PLN 45 million –we read in the company's announcement.
As we read further, “irregularities also concerned the sphere of hiring people for key managerial positions, where the selection was based on a purely party basis. The prosecutor's office has already received the first three notifications on suspicion of committing a crime, and a dozen more are in preparation.”
Huge loss at PZU. The audit results are in. Serious political turmoil
PZU calculates that the previous management took over 29 percent. shares in Ruch SA, a company that was de facto bankrupt. The insurer lost PLN 58 million on this. “However, this shocking amount pales in comparison to the loss Alior Bank from the PZU Group, which contributed almost PLN 210 million to this investment. Information obtained from audit firms and law firms involved in the audit shows that the aim of the project could have been, among others: ensuring that the right-wing press reaches the inhabitants of smaller towns. The persistent 'reanimation' of Ruch was carried out despite many negative reports from external companies 'warning' against the purchase,” we read further.
The previous PZU authorities also contributed to the damage resulting from the supervision of LINK4, which belongs to the group. Actions in this matter were to be caused by political reasons and were in the interest of people associated with the ruling party in the period in question (PiS is not officially named here, but it was this party that was in power at the time), according to the audit. “It was about the fact that LINK4 focused only on blindly gaining market share, which, combined with incompetence and numerous managerial errors, led to losses in the motor insurance segment. From 2016, the wife of the then Minister of Justice was responsible for online sales and marketing at LINK4. In 2020, she joined the management board of LINK4, where she worked until 2022,” PZU writes.
The audit results indicate that PZU was involved in numerous marketing, preventive and sponsoring activities supporting PiS's election result. These actions seemed to be aimed at withdrawing funds from the PZU Group. “This includes, for example, financing foundations with a clear party connotation and events with the participation of politicians of only one party, or supporting projects carried out by the media of this environment, which intensified especially in periods around elections. An example of activities in this area is the implementation by the then authorities of the PZU Foundation electoral and political campaign under the guise of so-called turnout-promoting activities. Cost these activities amounted to PLN 6 million in 2023 alone. In the years 2016-2024, PZU SA and PZU Życie SA alone concluded over 90 contracts with a publishing house publishing a weekly associated with the government camp for the amount of approximately PLN 5 million,” we read.
Irregularities in filling managerial positions and blacklist
The audit shows that 40 “management board advisors” were employed in the entire PZU Group in the years 2016-2024. The largest number was at Pekao, where 18 people worked in such positions, which cost money bank as much as PLN 45 million for their salaries. “The payroll of advisors and directors of PZU Group companies included right-wing journalists, lawyers associated with the then ruling coalition, business partners of the then management board members, but above all, politicians of the ruling party and their children. The largest single beneficiaries collected up to PLN 6 million each. Earnings the most important advisors exceeded the amount of even PLN 220,000 per month. At the same time, in the case of 'advisors', it is difficult to find any traces of their work, i.e. any documents, expert opinions and advice resulting from these employment relationships, or even traces of their presence in the companies (as, for example, entrance to officeslogging in, etc.),” informs PZU.
Fictitious positions were also created in the company (i.e. without employee duties, without the need to be present at work, without the obligation to achieve any work results). This concerned primarily job positions within the so-called senior management for people associated with a specific political environment, including people designated by the then Ministry of State Assets.
Moreover, Sigma Media House was to cooperate on non-market conditions, which were worse and unfavorable for insurance companies. This company of the PZU Group was supposed to redirect cash from State Treasury companies to the media supporting the then ruling party. The total damage to the assets of PZU and PZU Życie in connection with this cooperation is at least PLN 10 million. The company also created a “blacklist” of publishers and media broadcasters with whom no advertising cooperation was initiated. The entities on the list are mainly: Warner Bros. Discovery (TVN), Agora Group (“Gazeta Wyborcza”, Gazeta.pl) and Ringier Axel Springer Group (Onet, “Newsweek”). “The analysis of advertising campaigns carried out by Sigma Bis and the participation of individual media in the campaigns confirms this conclusion,” we read.
PZU supported Rydzyk's father
The audit also shows that entities related to the Catholic Television from Toruń and its related foundation (as you might guess, TV Trwam and the Tadeusz Rydzyk Foundation) could count on special considerations. “These entities could count on subsidies related to the financing of media projects, but also on mysterious damage settlement. The settlement of 4 events for one of the organizations cost over PLN 10 million. A special incident was the damage that occurred in 2009 in connection with an incorrectly performed geothermal well and submitted to PZU in 2020 (i.e. after the expiry of the limitation period), which was initially qualified for refusal,” we read.
“Ultimately, it was 'recognized' as a result of the 'settlement' and, right after the elections of October 15, 2023, paid in the total amount of PLN 20 million (of which PLN 10 million was paid by PZU and PZU's reinsurer, and PLN 10 million was paid by the contractor, which was paid by contractor is the subject – according to media reports – of the contractor submitting a notification on suspicion of committing a crime of acting to the detriment of the contractor),” PZU said.
PZU is already working to repair the damage
The losses shown in the audit report have already been included in the financial results from previous years and have no impact on the PZU Group's results this year. Information on this subject does not constitute price-related information related to information obligations.
– The audits were carried out by renowned external audit companies and law firms, without any interference from the company, giving a reliable picture of the existing situation. These companies examined various areas of the PZU Group's business, investment, marketing and sponsorship activities. In total, as many as 26 audits were carried out in 18 areas – emphasizes Artur Olech, president of PZU.
“PZU and the entire Group are currently undergoing profound personnel changes aimed at restoring professional work and employment standards. In total, over the last few months, over 330 people. (…) The conclusions from the audits will be used to tighten the procedures in the PZU Group in order to limit the occurrence of similar abuses in the future. These conclusions will also be used in criminal and civil proceedings, where PZU will seek compensation for the damage,” the new company concluded. management in a press release.