Tusk: expect further details regarding Orlen former management

During a press conference in Gdańsk on Monday (December 2), Prime Minister Donald Tusk announced that the current management of Orlen would systematically provide updates on the outcomes of the company's internal reviews.

The prime minister pointed out that Gdańsk was "one of the victims" of the previous administration. "Some of the events are irreversible," Tusk assessed.

"We must address the consequences of certain events involving Lotos and Olefin. I spoke with the city’s mayor (Gdańsk Mayor Aleksandra Dulkiewicz - ed.) about how to repair the various damages ... which are the result of actions by the previous team. Expect further updates," said the Prime Minister.

On the agenda of Orlen's Extraordinary General Meeting of Shareholders, which began at 11:00 a.m. on Monday at its headquarters in Płock, was a resolution concerning claims and remedies for damages caused by the management under Daniel Obajtek's chairmanship.

In the justification prepared for the shareholders' meeting, Orlen highlighted ongoing investigations "into the actions and omissions of former management members" that occurred between 2018 and 2024 and may have caused significant harm, including major financial losses.

Orlen noted that numerous audits and reviews conducted within the company revealed "significant irregularities in the fulfillment of duties" during the tenure of former management members. A total of 13 individuals were mentioned in this context. Alongside Daniel Obajtek, who served as CEO from February 2018 to February 2024, other names included Armen Artwich, Adam Burak, Patrycja Klarecka, Zbigniew Leszczyński, Krzysztof Nowicki, Robert Perkowski, Wiesław Protasewicz, Michał Róg, Piotr Sabat, Jan Szewczak, Iwona Waksmundzka-Olejniczak, and Józef Węgrecki.

According to Orlen, the claims under investigation involve issues such as fuel price undercutting, unjustified expenditures on sponsorships and donation agreements, unjustified representational expenses by board members, unfavorable decisions regarding tangible and capital investments (including the purchase of a controlling stake in Ruch S.A.), as well as unjustified expenses related to detective and consulting services, and activities involving Orlen Trading Switzerland (OTS).

Former Orlen CEO Daniel Obajtek announced on Monday that he has filed a report with the National Prosecutor's Office alleging that the current management of the company may have committed crimes. He claimed these crimes involved broadly defined actions detrimental to the company, including halting investments.

At a press conference alongside former members of Orlen's board and supervisory board, Obajtek stated that the allegations concern "numerous failures related to the management of the corporation." He emphasized that failures are punishable by law. "Failures can result in the company not progressing, and I think we can see that... I haven't observed any investments being announced or continued by Orlen," he said.

As an example of actions allegedly harmful to the company, Obajtek pointed to the 15 billion zloty payout mandated by legislation to finance compensation for freezing gas prices for consumers. While acknowledging that this measure was included in the law, he argued it was not lawful and said Orlen should have challenged this provision "in various international institutions because taxes must be imposed proportionally." He further noted that other companies operating in Poland "did not pay such a tax as Orlen did."

During the press conference preceding the EGM, Obajtek questioned the current management’s withdrawal from collaboration with Saudi Aramco, which he described as a strategic partner. He accused the current board of "plowing under" opportunities to integrate into the global petrochemical supply chain. Obajtek also criticized the lack of acquisitions this year, claiming that there was an opportunity to purchase the JET fuel station network in Germany and Austria.

He also characterized the resolutions as "repression and persecution" and expressed concerns that the former Orlen leadership faces potential "preemptive arrests."

Former Vice President Michał Róg criticized the EGM resolutions as lacking substance and being vague, suggesting they are politically driven. "The current board undermines our work and record-breaking results, which will be very difficult to replicate or even approach," Róg declared.

"Every business decision can be questioned, and today those decisions are being questioned," he added, noting that much of the current Orlen leadership consists of lawyers "who lack business expertise," he added.

Another former vice president, Janusz Szewczak, described the EGM resolutions as "revenge for achieving monumental success."

Szewczak alleged that a "wave of accusations" began when the board initiated discussions about acquiring the refinery in Schwedt. "We are witnessing the slaughter of the goose that lays golden eggs," Szewczak concluded.

On November 27, Minister of State Assets Jakub Jaworowski noted that, based on information provided by Orlen, the company has so far filed eight notifications with the prosecutor's office and is preparing additional ones. He explained that two of these relate to actions or omissions by the former Orlen management, resulting in losses exceeding 5 billion zlotys.

In February, the Supreme Audit Office (NIK) published a report indicating that Orlen, as part of its remedial measures during the merger with Lotos, sold Lotos assets to private entities at least 5 billion zlotys below their estimated value. On November 21 of this year, after a hours-long hearing at the NIK, Obajtek told reporters that "there was no undervaluation in the sale of Lotos." He stated that the price at which Saudi Aramco purchased the refinery in Gdańsk should include 20 billion zlotys in synergy value.

"Thanks to synergies, Orlen earned 300 million zlotys in the first year and 1.5 billion zlotys in the second year," Obajtek said at the time. He emphasized that the entire sale process was economically justified and not merely his personal decision but also that of "hundreds" of experts, lawyers, the government, and the European Commission.

At the end of November, Obajtek suggested that "the political theater currently unfolding around Orlen" was causing the company's stock to decline.