Poland's tax authority flags 120 billion PLN in public spending irregularities

Irregularities in public spending between 2020 and 2023 have been estimated at approximately 120 billion Polish zloty (PLN), representing 3% of the country's GDP. This figure emerged from audits conducted by the National Revenue Administration (KAS), presented by Finance and Economy Minister Andrzej Domański.

Domański stated that around 250 criminal complaints, totaling 106 billion PLN, have been forwarded to prosecutors, leading to nearly 200 initiated investigations. The KAS audits covered 176 institutions, including all 17 ministries, various foundations, associations, public fund beneficiaries, and state-owned companies. These audits focused on the period before the current government took office, though similar continuous audits are ongoing.

Zbigniew Stawicki, deputy head of KAS, reported that 214 customs and tax audits are underway at beneficiaries of public funds, linked to the audit findings. Of the 174 completed audits, 64 resulted in complaints filed with prosecutors, and 53 investigations have begun.

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This is 3% of GDP, which we cannot ignore.

Stawicki highlighted that the identified irregularities go beyond procedural errors. Auditors noted violations in subsidy allocation and settlement, spending without legal basis, misuse of public funds, mismanagement, and failure to secure the state treasury's interests. He suggested that many cases indicate intentional actions with malicious intent, aiming not only for mismanagement but also for channeling public funds to private accounts, citing examples of transfers as small as 5,000 PLN possibly to bypass transaction reporting thresholds.

Significant accusations involve expenditures on projects, advertising, and media supporting the Law and Justice party. One major case cited by Stawicki concerns the Roman Dmowski National Thought Institute, where nearly 40 million PLN was allegedly spent on property acquisition without a clear social purpose.

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What we are encountering often does not have the character of a mistake, but raises suspicion of deliberate actions, with bad intentions, aimed not only at bureaucratic mismanagement, but also at channeling public funds for private purposes.