Minister dismisses KZN management, appoints interim leadership, promises investigation after irregularities

POLITICSMinister dismisses KZN management, appoints interim leadership, promises investigation after irregularities

The Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, dismissed the entire management board of the National Real Estate Reservoir (KZN), headed by President Arkadiusz Urban, effective December 31, 2023. This decision was made due to numerous irregularities that occurred within the institution.

Minister Pełczyńska-Nałęcz reported that the KZN was established 6.5 years ago, and three years ago the Social Housing Initiatives (SIM) program was launched. Its purpose was to build homes for young families without creditworthiness who could rent a house with the eventual goal of owning it. During the operation of SIM, a block of 40 apartments was built.

Minister Pełczyńska-Nałęcz pointed out that despite these outcomes, salaries in KZN had increased shockingly. In 2018, the total personal remuneration was PLN 1.7 million, and in 2023 it was almost PLN 9 million, which represents a 4.5-fold increase. This increase significantly exceeds inflation and any other reasons that could justify such significant salary growth. In only four months of 2023, from July to October, the KZN management exceeded the financial plan for salaries by over PLN 700,000, thereby breaching public finance discipline.

Due to the violations that took place in KZN, the Minister of Funds and Regional Policy reported the matter to the Public Finance Discipline Ombudsman. The Minister will also submit a list of whistleblowers to the Attorney General regarding labor law violations that have occurred in this institution, for further appropriate action.

Minister Pełczyńska-Nałęcz has appointed Łukasz Bałajewicz as First Deputy Chairman and acting Chairman of the KZN, and Arkadiusz Borek as the Second Deputy Chairman of the KZN. The interim management of the KZN will carry out their duties until a new president is appointed, which will happen in a few months through an open and transparent competition. The Minister emphasized that temporary management is entrusted with the important mission of explicating the situation in KZN.

“I’m delegating a very important mission to the temporary management: a thorough investigation of what happened in the institution; recognition of any injustices to employees, as detailed in the open letter from the staff; compensation and holding those accountable for misuse; diagnosing in close cooperation with municipalities, self-governments and the appropriate ministries the current stage of investments and Social Housing Initiatives,” said the Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz.

“In three months, I will expect a plan about what investments will be made, when, and in which municipalities. The most important thing is to carry out KZN’s mission and Social Housing Initiatives, a program intended to fill a gap in the Polish housing market, as quickly and effectively as possible. I would clearly summarize this mission: what unfortunately turned into the National Reservoir of Injustice, should once again become the National Reservoir of Real Estate,” emphasized Minister Katarzyna Pełczyńska-Nałęcz.

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