The first 16 projects from the support for the diversification of the HoReCa industry activities from KPO, considered doubtful, will be inspected this week, announced Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Policy, on Tuesday.
This concerns concerns about subsidies for business diversification for companies in the HoReCa sector, which have been hit hard by the pandemic. According to media reports, companies received subsidies from the Polish KPO (KPO) for items such as company yachts. Last week, Katarzyna Pełczyńska-Nałęcz announced a suspension of payments, adding that payments would resume after 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.
Regarding the HoReCa program, inspections are underway at all five operators and will conclude in September. The first 16 projects deemed questionable will be inspected on-site this week, with the remaining ones next week. A separate inspection is underway to check for potential conflicts of interest, the head of the Ministry of Development Funds and Regional Policy announced on Tuesday on the X portal.
Last Thursday, the Polish Agency for Enterprise Development (PARP) emphasized that the program (support for HoReCa) is continuing. “PARP is making every effort to ensure that inspections are as burdensome as possible for entrepreneurs, while ensuring that all irregularities are effectively identified and resolved,” the Agency's representatives assured in a statement. They added that suspended payments will be gradually unblocked after verification of the project's correct assessment.
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Paweł Pecura, president of the eDotacje company and a PiS councilor, encouraged entrepreneurs to apply for funding for yachts from the KPO (National Waterway Programme). He helped them prepare the relevant documents. He now emphasizes that the number of boat applications increased also because they were favorably assessed by experts in the grant competition.
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The agency added that it will determine, among other things, whether the purchased machinery or equipment was actually included in the entrepreneur's commercial offer . The agreement, the agency noted, may be terminated in the event of a breach of its provisions or if irregularities are identified.
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, titled “Investments in the Diversification of HoReCa Sector Activities,” was aimed at micro, small, and medium-sized businesses operating in the hotel, restaurant, catering, tourism, and culture sectors affected by the COVID-19 pandemic in Poland. Support was provided for investments, training, and consulting, for example.
- to cover the costs of purchasing machinery and equipment necessary to introduce new products/services and construction works to the market,
- investments related to green transformation and the use of digital technologies,
- introduction of development services,
- 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 5th of last year, but was extended. The second period began on July 18th 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.
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The highlanders took subsidies for jacuzzis and saunas. “I had calls from guests canceling their stay because I was robbing the state.”
Pełczyńska-Nałęcz also announced in the post that over the past week, nearly PLN 250 million had been paid out for investments from the Polish Development Fund, including PLN 47.5 million for the development of hospitals, including in the area of oncology; a contract had been signed for the electrification and efficiency improvement of the container terminal at the Port of Gdynia; and Płock had received funds for 11 investments under the Green Transformation of Cities, including the construction of storm sewers and waterworks, and the reconstruction of street surfaces.
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 this amount so far. The next tranche of funds is expected to arrive in the fall. (PAP)
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