The results of the KPO funds audit are in. The Ministry confirms irregularities.

• There were irregularities among the 16 audited projects from the KPO, but it was not 16 out of 16, says Katarzyna Pełczyńska-Nałęcz.
• In the coming weeks, several dozen more projects will be inspected. These are the riskiest ones, he emphasizes.
• Simultaneously with inspections of beneficiaries, operators are checked for possible conflicts of interest, he points out.

During a meeting in Lublin, Minister of Funds Katarzyna Pełczyńska-Nałęcz was asked about the results of the KPO audit. She stated that there were irregularities among the 16 audited projects.

Among the 16 audited projects supporting the diversification of the HoReCa industry with KPO, there were irregularities, but this was not the case in 16 out of 16

- noted Minister Katarzyna Pełczyńska-Nałęcz.

This concerns doubts surrounding subsidies for business diversification for companies in the HoReCa sector, which have suffered as a result of the pandemic; according to media reports, companies received subsidies from the KPO, including for company yachts.

Pełczyńska-Nałęcz announced that the first 16 projects that were deemed questionable will be inspected this week.

The Minister admitted that she already knows about the audit results, but she wants entrepreneurs to be the first to know them and have the opportunity to appeal.

Only then will I come out and inform you

- said Pełczyńska-Nałęcz.

She announced that several dozen more projects will be inspected in the coming weeks.

These are the riskiest projects we have mapped

- she added.

She stated that, alongside inspections of beneficiaries, operators are also checked for possible conflicts of interest.

The head of the Ministry of Finance and Public Procurement stressed that people must feel safe when using public funds, so there will be no beheadings after a one-day inspection.

If we want Polish entrepreneurs to want to benefit from the support that will then fuel our development, they must feel that this is not some situation where some excited politicians will come with this money and start beheading them on the internet and destroying their image.

- she stated.

Last week , support payments were suspended pending contract verification. The Minister assured that payments would resume once the contracts were verified. The European Public Prosecutor's Office (EPPO) has launched an investigation into the use of funds from the Polish KPO in the HoReCa sector.

According to PARP data, 3,005 agreements were signed with entrepreneurs (each with a different company) as part of the HoReCa support provided by the KPO . As of the end of July of this year, PLN 110 million of the total support amount of PLN 1.24 billion had been paid to entrepreneurs.

The call for proposals entitled "Investments in the diversification of the HoReCa sector" was addressed to micro, small or medium-sized entrepreneurs operating in the hotel, gastronomy, catering, tourism and culture sectors affected by the COVID-19 pandemic in Poland.

The support was intended for investments, training or consulting, i.e. for example to cover the costs of purchasing machinery and equipment necessary to introduce new products/services to the market, construction works, investments related to the green transformation and the use of digital technologies, as well as the introduction of development services and improving employee qualifications (e.g. training in new skills or retraining employees).

The first recruitment period for KPO support for the HoReCa industry began in May 2024 and was originally scheduled to run until June 5 of last year, but was extended. The second period began on July 18 of last year and was also extended several times. Ultimately, it ran until the end of October 2024.

The funding amount ranged from PLN 50,000 to PLN 540,000 (up to 90%) of eligible costs, with a maximum of PLN 600,000. Support was provided in the form of reimbursement of expenses from the grant portion of the KPO. At least 70% of all project expenditures had to be allocated to investment activities ; a maximum of 30% could be allocated to training or consulting.

The National Recovery and Resilience Plan (KPO) is intended to strengthen the Polish economy; it consists of 57 investments and 54 reforms . It provides Poland with €59.8 billion in EU funds, including €25.27 billion in grants and €34.54 billion in preferential loans. Poland has received PLN 67 billion of the funds so far. The next tranche of funds is expected to arrive in the fall.