Three additional suspects have been taken into custody as part of the ongoing probe into irregularities at Poland’s State Agency for Strategic Reserves, according to Katarzyna Calów-Jaszewska, spokeswoman for the National Public Prosecution Service.
The arrests were executed under the authority of a prosecutor from the Silesian Division of Organized Crime within the Polish State Police.
The National Public Prosecution Service says two individuals face charges connected to abusing influence in public institutions to steer decisions involving entities controlled by Paweł S.
A third suspect is a police officer accused of exceeding powers by helping Paweł S. withdraw funds from banks totaling about 3.5 million Polish zlotys.
On the prosecutor’s request, the court ordered the temporary detention of Eryk T., a detainee, who faces charges of using influence in a public institution.
The investigation into irregularities at the State Agency for Strategic Reserves has been active since April 12 of this year. It began on December 1, 2023 at the Regional Prosecutor’s Office in Warsaw and was assigned to the Central Anti-Corruption Bureau and the Masovian Tax Administration and Customs Office, along with the Police Internal Affairs Bureau.
The National Public Prosecution Service states the case was opened based on material collected by the Central Anti-Corruption Bureau and two reports on suspected offenses submitted by the Inspector General of Financial Information.
The Service asserts that the evidence gathered supports suspicions of multiple abuses in the agency’s duties, including provisions intended to bypass competition rules under the Public Procurement Act.
The irregularities mainly involve favoritism toward certain bidders who supplied goods to the State Agency for Strategic Reserves. Those entities often obtained prices well above their market value, and decision-makers directed contracts to specific firms regardless of price or product quality. Some of these firms had little relevant experience and would not have won under normal market conditions, yet they were chosen for contracts with the agency.
Investigators have compiled extensive documentation on RARS activities, examined media seized in the case, reviewed more than 30 bank account histories, and interviewed more than 50 witnesses. The inquiry also includes an internal audit at RARS and an OLAF report on the EU-funded program.
On January 11, 2023, RARS, then led by Michał K., signed an agreement with the European Commission to co-finance a project for buying power generators for Ukraine. The OLAF report found irregularities in spending the funds from this EU grant and estimated its value at 91,972,360 euros.
The investigation continues with prosecutors noting that the case includes charges for participation in an organized criminal group, abuse of power by public officials, money laundering, and the use of influence in a public institution. The alleged irregular expenditures total not less than 340 million PLN.
To date, eight individuals are named in connection with the investigation, including Michał K. and Paweł S., with three suspects remaining in pre-trial detention in Poland. Michał K. is in custody in Great Britain awaiting extradition procedures.
Tax audits have been opened into several entities potentially used for criminal activity, with seven audits currently underway. An audit of the agency by the Supreme Audit Office has also been initiated.
Authorities have frozen nine bank accounts that could serve money laundering schemes connected to the case. In order to secure fines and the forfeiture of assets tied to crimes, authorities have placed security on properties totaling more than 24 million PLN and cash totaling nearly 120 million PLN.
The investigation remains ongoing, with further actions anticipated, including additional arrests and prosecutions. The arrests occurred on November 7 of the year in question, highlighting the ongoing effort to uncover and address procurement abuses at state level.
For readers in Canada and the United States, this case illustrates how procurement integrity, anti-fraud oversight, and international collaboration converge when large public funds are at stake.