Former CEO Denies Contact with Terrorist Group; Orlen Faces Questions over Fuel Prices and Asset Sales
Poland's chief prosecutor, Malgorzata Adamajtys, announced an investigation into multi-million-dollar losses at Polish refiner Orlen's Swiss unit and allegations that its former CEO, identified only as Samer A., had ties to the terrorist organization Hezbollah.
Samer A., who is a Polish citizen and has a Polish passport, denied having any connections with Hezbollah in an interview with Polish radio RMF.
He claimed he was being treated as a second-class citizen by the current Polish authorities and was not hiding from law enforcement.
Orlen's internal security unit had previously suspected Samer A.
of having contacts with Hezbollah, according to Polish website Onet.
The chief prosecutor of Slovakia, Adamajtys, announced at a press conference that they are investigating possible connections between the Slovakian oil and gas company, OTS, and terrorist organizations, specifically Hezbollah, based on information from the press, radio, and television.
Hezbollah is designated as a terrorist organization by the US, but the European Union only classifies its military wing as a terrorist group.
OTS was established as a business despite a warning from Orlen's internal security unit not to do so.
The company operated without proper supervision, documentation, and verification of contractors, leading the prosecutor to question the appointment of Samer A.
as CEO due to his practice of making advance payments without completing deliveries.
Reuters attempted to contact Samer A.
regarding comments made by Adamajtys about Orlen's Oil Trading and Shipping (OTS) operations, but were unable to reach him.
OTS is under investigation by Orlen for losses estimated at around $400 million from contracts to purchase Venezuelan oil and oil products.
OTS allegedly tried to take advantage of a temporary window in US sanctions against Venezuela and paid cash advances to unverified intermediaries.
The contracts were later canceled due to the closing window and non-loading of tankers.
Orlen is currently auditing OTS operations.
Additionally, Orlen is facing questions over potential manipulation of fuel prices prior to last year's national election and suspicions of below-market-value asset sales.
In February, Orlen, a Polish oil and gas company, denied allegations of below-market asset sales and artificially lowering fuel prices from the state audit office.
The company gained approximately 9 billion zloty ($2.2 billion) from a corporate merger.
Separately, Samer A.
was charged with VAT fraud between 2008-2013 and was detained and questioned by authorities.
Opposition critics accused Orlen of financing the previous nationalist Law and Justice (PiS) government's policy agenda, including media control.
Prime Minister Donald Tusk called the country's chief prosecutor and secret services coordinator to discuss potential links between the former Orlen CEO, Daniel Obajtek, and Hezbollah.
Obajtek, a PiS associate, denied allegations made by Tusk of looking for scandals, and Polish media speculate that PiS may nominate Obajtek as their European Parliament election candidate in June.