Poland’s government is being shaken by a growing scandal after it was revealed that parts of Poland’s EU recovery funds for post-covid recovery ended up with businesses that can hardly be described as socially critical – including a swingers club, a pizzeria with a solarium, and a chain of vodka bars.
The revelation came when the government published an interactive map of grant recipients to show how the money was distributed. Instead of confirming responsible use, it exposed how support from a program worth 1.2 billion złoty (approximately 282 million euros) went to yachts, entertainment establishments, and other projects that raise questions about the authorities’ judgment and control over how EU citizens’ tax money is actually used.
One of the most notable cases involves a business in southern Poland registered at the same address as a swingers club.
The national-conservative Law and Justice party (PiS) describes the affair as a textbook example of cronyism and waste of taxpayer money.
— One of the biggest scandals since 1989, declared PiS parliamentarian Tobiasz Bocheński.
He staged a protest on Saturday outside the prime minister’s office with a fake sign for the made-up “Ministry of Herring and Vodka” – a reference to one of the businesses that received funding.
PiS is now demanding parliamentary hearings and that prosecutors examine “the link, dependency and decision-making chain”.
Grants for luxury and entertainment
The HoReCa program is part of the 254 billion złoty (approximately 59.8 billion euros) that Poland was allocated from the EU’s recovery plan. The money was frozen by the EU for a long time due to alleged rule of law deficiencies under the PiS government, and releasing the funds was one of Polish Prime Minister Donald Tusk’s main campaign promises in 2023.
The program was created to save hotels, restaurants and cultural activities and make them more resilient to crises. Instead, parts of the support have been used to buy luxury goods and finance activities far from the program’s core purpose.
A restaurant owner in Łódź, whose grant was used to buy two yachts, defended himself, claiming that they “didn’t get this money for vacations”. Instead, he argued that the EU-financed luxury boats could be rented out to tourists when the restaurants were closed.
The owner of the business registered at the same address as the swingers club claims in turn that the grant went to metalworking machines – not to adult entertainment.
Officials emphasize that many of the criticized purchases, despite their questionable utility, actually followed the program’s rules – rules that were formulated by the previous government and allowed investments in, for example, tourist rentals or “environmentally friendly attractions”.
“A shame”
To quell criticism from outraged citizens who have grown tired of widespread corruption, Prime Minister Donald Tusk assures that improper use of the funds will not be tolerated.
“We put too much effort into unlocking these billions to allow anyone to waste them”, he wrote on X on Saturday, also promising that “anyone who made mistakes will face consequences, regardless of their position or party affiliation”.
A well-known Polish entrepreneur, Rafał Brzoska – owner of logistics company InPost – directs sharp criticism at how the recovery funds have been handled. He describes the scandal as the end for KPO, the Polish part of the EU’s recovery plan, and believes the causes are “stupidity, haste, human greed, the lack of proper procedures, and the absence of qualified personnel to competently assess applications and separate the wheat from the chaff?”.
“It’s a shame that such an important program for Poland, its economy and investments ends this way, because no one has any doubts anymore that this is THE END”, he added.
“Obliged to take action”
Prosecutors have begun investigating, and the finance ministry says the first results from the review will come at the end of September.
The European Commission has so far been more restrained in its response, but has requested an explanation from Warsaw.
— Poland is obliged to take explanatory action, said EU Commission spokesperson Maciej Berestecki in an interview with radio channel RMF FM.
Brussels emphasizes that if the Polish authorities’ response to any irregularities is deemed insufficient, the European Commission can take further action. In cases where suspected fraud occurs, the European Public Prosecutor’s Office and OLAF (the EU’s anti-fraud office) can also intervene.
