Warsaw Prosecutor Launches Investigation Into Former Prime Minister and PKP Cargo Management

The District Prosecutor’s Office in Warsaw has announced an investigation into former Polish Prime Minister Mateusz Morawiecki, the former management of PKP Cargo, and the decisions made regarding coal transport from July 25, 2022, to July 31, 2023.

The investigation will probe allegations of failure to fulfill obligations and abuse of powers related to the prioritization of coal transport over other contracts, resulting in significant financial losses for the company.

The investigation centers on the coal decision, an initiative launched by Morawiecki and his government in July 2022, which prioritized coal transport on the railways until early October of that year. This decision forced PKP Cargo to cancel other contracts, leading to substantial financial repercussions. The Polish operator, currently under new temporary management, has sought accountability from Morawiecki and the former management team, citing actions taken without proper agreements with the Minister of State Assets and without issuing a resolution from PKP Cargo’s management board.

PKP Cargo has also requested financial compensation from the current government for the losses incurred due to these decisions, though no resolution has been reached regarding this compensation.

Meanwhile, the restructuring process for PKP Cargo, initiated by the new management, aims to mitigate the financial crisis precipitated by years of alleged mismanagement. The restructuring, which commenced at the end of July, focuses on cost reductions and is expected to take between one and a half to two years. This plan includes significant job cuts, with over 4,000 employees, or one-third of the workforce, set to be dismissed by September 30, 2024. Additionally, another third of the workforce was placed on inactive status as of June 1, 2024, resulting in a 40% reduction in their salaries and an inability to work.

To further streamline operations, PKP Cargo has secured agreements with several companies to transfer more than 1,800 employees. The latest agreement, involving around 100 employees, was signed with WARS, a catering service provider on Polish passenger trains. Other agreements have been made with Polregio, PKP Intercity, PKP Intercity Remtrak, PKP PLK, and PESA.

Source: PKP CARGO; RAILTARGET; RailFreight