Two detained in GetBack corruption scandal

One of the company’s directors is suspected of hiding and destroying evidence, while the head of a brokerage house which sold GetBack bonds faces the same charges as the vindication company’s former CEO, Polish Radio’s IAR news agency reported.

GetBack’s former CEO was detained earlier this month and is under arrest. He is suspected of trying to extort PLN 250 million from the state-owned Polish Development Fund, a state investment vehicle.

Poland’s Central Anti-Corruption Bureau hasn’t ruled out further detainments as the investigation into GetBack continues.

GetBack was set up in 2012 and debuted on the Warsaw Stock Exchange a year ago.

The company became infamous after media reports said that it was unable to buy back from more than 9,000 people corporate bonds worth billions of zloty.

In April, GetBack announced it had made a deal with state-owned bank PKO Bank Polski and the Polish Development Fund for an investment loan of PLN 250 million, which the state-owned companies denied, resulting in trade of GetBack’s stocks and bonds being suspended on the Warsaw Stock Exchange, and the subsequent sacking of GetBack’s then-CEO.

GetBack recorded losses of PLN 1.3 billion in 2017, according to a financial report, which was not verified by an auditor.

GetBack’s former CEO has also been accused of publishing misleading information in one of the company’s current reports. (vb)

Source: IAR