The Polish National Foundation (PFN) has reported significant financial irregularities during the previous management, estimating losses exceeding 30 million zloty (approximately $7.3 million). These findings stem from extensive audits initiated by the new administration, which took office nine months ago. The reports have prompted the foundation to notify the authorities about potential criminal activities.
Maciej Szudak, the chairman of PFN, announced the decision to engage with the prosecution after internal reviews revealed large-scale abuse concerning contracts and financial transactions. The foundation indicated these irregularities can span from malicious internal agreements to misdirected payments to third parties, raising red flags about their legitimacy.
"This is not the end of our inquiries," Szudak said during the press conference held on February 28, 2025. "The numbers we have encountered so far have been quite shocking, and our audits are still underway, meaning we may have more disclosures shortly." He pointed out, "We estimate the damage to be over 30 million zloty, which incredibly surpasses the threshold for large-scale damage defined by the Penal Code nearly thirty times." This acknowledgment has alarmed many within the spectrum of culture and public service.
According to legal expert Professor Tomasz Siemiątkowski, the issues at stake are not just financial but highlight broader systemic failures within state-supported institutions. He made it clear during the press conference, stating, "The matter holds societal importance as the financial resources misused by the foundation came from public sponsors, including state-owned companies intended to promote economic growth. Many of the projects the funds were allocated for fell outside the foundation's aims, indicating mismanagement and misallocation of resources."
Notably, the Polish National Foundation was established at the end of 2016 by various state-owned companies, including PGE, ENEA, and PKN Orlen. Its purpose was to bolster Poland’s image abroad and promote national development through strategic projects. Critics, including Deputy Minister of Culture Maciej Wróbel, have now pointed to the extensive spending allowances, like the notorious 8.5 million zloty earmarked for media campaigns attacking judges and the questionable purchase of a yacht meant to promote Polish tourism, which proved defective and sat idle at port.
The foundation's internal report indicates problematic financial practices carried out from 2017 to 2024. Wróbel remarked on the grim nature of these findings, expressing concern over how public money was spent without effective tracking or accountability. "When we look back at the expenditures incurred under the previous governance, the true scale reveals the waste of countless millions. It's staggering to think of how many local libraries could be renovated with these squandered funds," he lamented on national television.
Prof. Siemiątkowski also emphasized the gravity of these allegations, asserting the need for the Prosecutor's Office to fully investigate the former leadership’s decisions. He noted numerous problematic projects mentioned, including 'Justice', 'I Love Poland', and 'Portal Polska', and their dubious financing and management. For example, the project "Polish Heritage East" reportedly transferred more than 12.5 million zloty to a Lithuanian entity, which allegedly delivered no tangible results. This raises serious questions about the oversight of grant distributions and the effectiveness of monitoring bodies assigned to these funds.
The revelations have reignited public interest as 2024 saw the prosecutor's office begin investigating the prior administration of PFN for potential abuse of power and dereliction of duties. The damages attributed to wrong practices have only compounded interest from both media and political bodies, as the foundation had, at the time, reallocated resources toward initiatives widely considered unacceptable or irrelevant, undermining the initial mandate provided by state stakeholders.
A detailed audit is currently underway, with PFN seeking accountability and transparency in the financial dealings of its predecessors. New administrative protocols have reportedly been established to reset the governance and spending practices, intended to restore public trust and effectiveness. Transparency advocates have heralded PFN's actions as long overdue, emphasizing the importance of citizen scrutiny over public institution spending.
With investigations poised to unravel more findings, the scope of financial scrutiny continues to expand, placing considerable pressure on the previous administration and their management decisions. It remains to be seen how this will impact public funding and trust across other civic sectors within the country, as taxpayers are rightfully asking where their money has gone and how future issues can be prevented.
These staggering revelations paint PFN's past management as ethically lacking, igniting discussions about reform and proper governance within publicly funded institutions. The new leadership at PFN appears committed to unwinding these layers of misuse and to rebuilding the organization's integrity as it endeavors toward revisiting its core objectives.