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Exposed: Massive Corruption in Polish Hypermarkets

01 Sep 2002

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The Polish Supreme Board of Inspection (NIK) recently released a report on hypermarket zoning which found widespread corruption at the local government level. Of 54 building permits issued to hypermarkets, 14 were issued illegally. Nearly half of all zoning changes made to allow hypermarkets were also found to be illegal. The auditing agency also found that the hypermarkets had frequently reneged on promised infrastructure investments and evaded taxes.

Photo: Breaking new ground in sleaze

Local governments are estimated to have lost a total of $6.44 million due to irregularities, while Treasury Agricultural Ownership Agency (AWRSP) losses amounted to $5.44 million. The city of Wroclaw lost some $2.3 million and Lodz around $3.34 million in zoning fees that should have been levied but were not.

Typically, private intermediaries who’s ownership was unknown bought land from local governments or the state at bargain prices, and then quickly re-sold it to hypermarkets at a mark-up sometimes 50 times the original price. (Reports from the Polish Ecological Transport Campaign, TET)