Biznes Fakty
The KPO scandal. These projects „were deemed questionable.” Inspection this week
– This week, inspections will commence on the first 16 questionable initiatives from the National Reconstruction Programme aimed at diversifying the HoReCa sector, as announced by Katarzyna Pełczyńska-Nałęcz, the Minister of Funds and Regional Policy, on the 10th Minister of Funds and Regional Policy’s website.
This pertains to concerns regarding subsidies for the diversification efforts of firms within the HoReCa industry, which have been severely affected by the pandemic. Media reports indicate that some companies received KPO subsidies, including funding for corporate yachts.
Contracts under scrutiny
Last week, Katarzyna Pełczyńska-Nałęcz declared a halt to payments, mentioning that they would resume only after the contracts underwent verification. The European Public Prosecutor’s Office (EPPO) has initiated an investigation into the allocation of funds from the Polish KPO in the HoReCa sector.
„Concerning the HoReCa program: inspections are currently being carried out at all 5 operators and are expected to conclude in September. The initial 16 projects identified as questionable will be inspected on-site this week, with the remaining ones next week. A distinct inspection is in progress to identify any potential conflicts of interest,” the head of the Ministry of Funds and Regional Policy stated on Tuesday via the X portal.
Subsidy disbursements to commence post-inspections
Last Thursday, the Polish Agency for Enterprise Development (PARP) reiterated that the HoReCa support program remains active. „PARP is striving to ensure that inspections are as minimally burdensome as possible for entrepreneurs while effectively identifying and resolving all irregularities,” representatives of the Agency assured in a statement. They further clarified that suspended payments will gradually be released following the verification of the project’s accurate assessment.
The agency also mentioned that it will ascertain, among other things, whether the machinery or equipment purchased was indeed included in the entrepreneur’s commercial proposal. The agreement may be terminated if its terms are violated or irregularities are discovered, as noted by the agency.
Support for investments and training initiatives
According to data from PARP, 3,005 agreements were executed with entrepreneurs (each involving a different company) under the HoReCa support initiative provided by the KPO. By the end of July this year, PLN 110 million out of a total support amount of PLN 1.24 billion had been disbursed to entrepreneurs.
The call for proposals named „Investments in the diversification of the HoReCa sector” targeted micro, small, or medium-sized enterprises operating within the hotel, gastronomy, catering, tourism, and culture industries, which have been adversely impacted by the COVID-19 pandemic in Poland.
The support was aimed at funding investments, training, or consulting services, such as covering costs for the acquisition of machinery and equipment necessary for the introduction of new products/services to the market, construction activities, investments related to green transformation and digital technology utilization, as well as the provision of development services and enhancement of employee qualifications (for instance, training in new skills or retraining employees).
Funding of up to half a million
The initial application period for KPO support for the HoReCa sector commenced in May 2024 and was initially set to conclude on June 5th of the previous year, but was extended. The second period began on July 18th of the previous year and was also extended multiple times, ultimately lasting until the end of October 2024.
The funding ranged from PLN 50,000 to PLN 540,000 (covering up to 90% of eligible costs), with a maximum of PLN 600,000 available. Support was provided in the form of reimbursement for expenses from the KPO’s grant allocation. At least 70% of total project expenditures had to be designated for investment activities, while a maximum of 30% could go towards training or consulting services.
Pełczyńska-Nałęcz also reported in the update that in the past week, nearly PLN 250 million had been disbursed for investments from the Polish Development Fund, which included PLN 47.5 million dedicated to hospital development, particularly in oncology, a contract for electrification and efficiency enhancement of the container terminal at the port of Gdynia, and funding for 11 investments in Płock under the Green Transformation of Cities, which included the construction of storm sewers and waterworks, as well as the reconstruction of road surfaces.
The National Recovery and Resilience Plan (KPO) aims to bolster the Polish economy; it encompasses 57 investments and 54 reforms. It allocates €59.8 billion in EU funding for Poland, comprising €25.27 billion in grants and €34.54 billion in preferential loans. To date, Poland has received PLN 67 billion of this allocation. The next tranche of funds is anticipated to arrive in the fall.
