The Polish media is awash with allegations that money from a multi-billion euro EU fund has been spent on luxuries such as yachts and saunas.
Poland has been allocated almost €60 billion from the EU’s Recovery and Resilience Facility, intended to rebuild member states’ economies after the COVID-19 pandemic.
To receive funding, all EU states had to present a National Recovery Plan (KPO) detailing how the resources would be spent to make their economies more competitive and sustainable.
Poland’s access to that funding was blocked by Brussels during the lifetime of the last Conservative (PiS) government in sanctions taken against Poland’s alleged rule of law violations.
The present centre-left government led by Prime Minister Donald Tusk succeeded in unlocking the funds almost immediately on coming into office in late 2023, despite the fact that in terms of legislation on the judiciary nothing has actually changed in Poland.
On August 8 reports emerged of resources from the KPO having been misappropriated on luxuries, prompting Tusk himself to step in and promise that the matter would be investigated and “waste of funds” would not be tolerated.
Under the plans, some €280 million was allocated for the hotel and hospitality sector, which suffered heavy losses from COVID-19 lockdowns, but it has been revealed that some of the money was spent by the companies on yachts, saunas, swimming pools, solariums and other luxury items for executives of these concerns.
Tusk pointed the finger of guilt at the ministry of Development Funds and Regional Policy, headed by Katarzyna-Pełczyńska Nałęcz from the centrist party Poland 2050, headed by the Speaker of Parliament Szymon Hołownia.
He said the ministry responsible had been aware for some time of possible “sloppiness” in the distribution of funds and that a comprehensive investigation would be conducted and any improperly granted funding would have to be repaid.
“I will urgently request that this audit lead to a thorough assessment of every penny spent on this project. Where a pay out was unjustified, I will expect swift decisions, including the revocation of funding.”
The ministry has defended itself claiming that the funds affected made up for only 0.5 per cent of Polish Recover Funds and revealed that the official leading the agency responsible for disbursing and monitoring the funds, the Polish Enterprise Development Agency (PARP), has been fired and replaced as a result of the revelations about irregularities.
The PiS opposition was quick to cash in politically on the government’s embarrassment.
The leader of the party Jarosław Kaczyński said that “not satisfied with ruining public finances and failing to secure income for the state budget we now find they are wasting KPO money. Money which will have to be paid back by us all”, an allusion to the fact that resources for the EU Recovery Fund were raised by the community on the financial markets and will have to be paid back.
Kaczyński added that “we were to have investments, innovation, drug supply security but we have ended up with broken election promises. Fortunately most Poles have had their eyes opened to what this government is like.”
Former digital affairs minister Janusz Cieszyński, posted: “I get up, go online, and don’t see or hear any of Katarzyna Pełczyńska-Nałęcz’s KPO success stories. Could it be that she’s attending a spa session?”
Politicians of other groupings also joined the fray with Marcelina Zawisza, an MP from the left-wing Razem Together party, which opposes the Tusk government, describing the news as a “blatant embezzlement of public money, especially as there wasn’t enough to fund a pharmaceutical plant.”
Pełczyńska-Nałęcz had been tipped to become deputy prime minister in the autumn as part of a coalition agreement which foresees Hołownia leaving his post as Speaker, but the KPO affair has cast doubt on that appointment.
She has been a highly-visible member of the government, frequently clashing with other ministers over issues such as her scepticism towards zero-rated mortgages for first time buyers and support for a more expansive approach to the building of the central airport that Tusk has been unenthusiastic about.
Tusk and Hołownia clashed recently when the latter objected to pressure being brought to bear on him to delay or cancel the inauguration of PiS allied president Karol Nawrocki over allegations of irregularities in the counting of votes and the illegitimacy of the court which had validated the result. Hołownia called the pressure on him an attempt to force him into a coup d’etat, something Tusk resented.
