The Supreme Audit Office carried out an inspection in the company Polskie Domy Drewniane, which was to increase the number of apartments in Poland. We write “had” because the NIK report shows that it has not achieved this in the slightest. Of the planned 11,000, only 31 were built, and the list of sins committed by the company is longer. It can be said that the only thing that was successful was creating a website for over PLN 400,000.
We advise you to sit comfortably while reading this text, because the scale of irregularities, which was shown by the NIK is appallingly long. The Polish Wooden Houses project was to influence the availability of wooden housing in Poland in a short time. The assumption was that the company was to carry out many activities – from erecting and renting buildings, to investments in land and renovations. The goal was to build 11,000 apartments in multi-family buildings and 950 single-family houses worth PLN 6,637.1 million within 5 years (2018-2022). This goal was achieved in only about 3 percent. By mid-2022, only 31 residential premises and 2 commercial premises were built and commissioned, of which only 6 were commercialized by June 2022.
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Polish Wooden Houses failed to achieve their main goals
Failure to achieve the main goal is the tip of the iceberg. For over half a year, the company operated without an approved material and financial plan for 2022 and without a long-term strategic plan for 2020-2023 approved by the General Meeting. In turn, the procedure for purchasing real estate was not updated for over a year and a half, although it was complete. On the other hand, the procedure for purchasing goods and services did not include the purchase of services in the field of scientific research and development, which was supposed to be one of the main tasks of Polskie Domy Drewniane. What is more, the purpose of the company’s activity, as stated in the articles of association, was inconsistent with the provisions of the Environmental Protection Law.
Speaking of things that the company has not done… Plans to create a reserve of real estate for investment purposes – the so-called land bank. The company failed to implement the plan even in 45 percent. “In addition, when purchasing land real estate, it did not follow its own procedure for purchasing real estate for the implementation of construction, housing and service investments” – indicates NIK. High advances and advance payments totaling more than 70 percent were paid for the purchased plots. selling prices, which NIK calls “mismanagement”.
Was the company wasting money?
There are more examples of such “uneconomical” actions. By nearly 200,000 PLN, the costs of a residential investment in Choroszcz increased, as a decision was made to perform additional works related to the possibility of developing the neighboring plot, the purchase of which was impossible. Over 1,170,000 PLN (between June 2020 and September 2021) was spent on the production of modular houses. Ultimately, however, no production company was established to deal with it. A property in Pułtusk was also purchased, although the company did not obtain a decision on environmental conditions for the implementation of the investment on the property, which was one of the conditions precedent for the conclusion of this agreement.
A significant amount was also spent on building the project’s website. It cost PLN 440,000. Interestingly, the NIK audit showed that the selection of the offer for its purchase was inconsistent with the previously adopted procedures, and the value of the concluded contract was higher by PLN 99.9 thousand. PLN, from the amount specified earlier in the resolution of the management board. Until July 29, 2022, the company did not record any profits from the activities of the website.
The disastrous financial results of Polskie Domy Drewniane
All this translated into poor financial results of the company. NIK indicates that “as a result of delays in the implementation of the investment, the company did not record revenues from the sale of goods and services until the end of 2020”. In the following 2021, it was assumed that the proceeds would reach PLN 18.8 million. They amounted to 2.9 thousand. zloty. In turn, in the first half of 2022, they amounted to 61.3 thousand. zloty. From March 5, 2019 to June 30, 2022, Polskie Domy Drewlanie recorded a total loss of PLN 16.4 million. In turn, the company’s assets decreased in the first half of 2022 from PLN 120 to 102.5 million. In the discussed period, costs of PLN 82.9 million were incurred. PLN 49.6 million was allocated to real estate and PLN 17 million to investment projects. On the other hand, the cost of salaries together with the costs of social security and other benefits accounted for an average of 50.3 per cent. type costs of the company.
Let us also note other, previously unmentioned offenses of Polish Wooden Houses. According to NIK, at the stage of establishing the company, the order of formalities was reversed. First, the National Fund for Environmental Protection and Water Management assumed that the business plan would be developed in the company after its establishment, and not before its creation, and no analysis of the operating concept and effectiveness of the company’s operation was carried out. In many locations (e.g. in Choroszcz, Łódź and Pułtusk), the start of investments was delayed, and in others (Lublin, Parzniew, Słomin) they were not even started. NIK also pointed out that the report on the company’s activities did not contain a summary of the effects achieved against the adopted annual plans, as well as the degree and reasons for incomplete implementation of these plans and the assumed efficiency indicators, which makes it impossible to reliably assess the company’s functioning on its basis.
NIK appeals to Mateusz Morawiecki
In order to increase the availability of flats, because that was the purpose of establishing the company, NIK asked the prime minister to take actions that would contribute to the implementation of housing investments in the form of energy-saving wooden construction. The Minister of Climate and Environment and the President of the National Fund for Environmental Protection and Water Management were also addressed. “The company Polskie Domy Drewniane SA was supposed to provide a large number of apartments and create the so-called land bank. Nothing came of it” – summed up the audits of the Supreme Audit Office.
2023-07-21 19:07:00
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