Thursday, July 21, 2016

High spending, unsuccessful projects. The audit results in JSW – TVN24 BiS

Bringing excessive debt JSW Coal Company (JSW), high expenses, among others, for consultancy and sponsorship and unsuccessful projects – these are some conclusions of the audit, commissioned by the ministry of energy in the company.

The results of this spring audit discussed on Monday in the Hawk of the Spring Energy Minister Krzysztof Tchórzewski. He said that on behalf of the Treasury – as a shareholder of JSW – ask the supervisory board of the company with a request to publish the full results of the audit in accordance with the procedures governing the exchange. The findings of the auditors minister also handed over on Monday the unions of JSW. ZR & oacute; DLO: Shutterstock ARP, TF Silesia and JSW agreed the terms of acquisition of coking Victoria

Industrial Development Agency, the Society of Financial Silesia and Jastrzębska Company … see more »

“we have to fix the company”

– One thing is certain: we must fix the company (…). We are doing at the moment everything we undertake many activities that give – in my opinion – a chance to a good future – the minister said, stressing the need to draw conclusions from the results of the audit.

– It is important that the conclusions of this audit were drawn not in a direction that was designated persons, who fail to fulfill the obligations that resulted sometimes conscious or unconscious damage to the company, but also to have learned the best lessons for the future – added Tchórzewski.

President of JSW Tomasz Gawlik assured that all the conclusions of the audit will be used by the management company to repair the company.

– we are in the difficult process of restructuring, so that the conclusions of auditors will be for us a great support and will serve us to create even better restructuring program – assured the president.

omissions and misguided choices

Deputy Minister of energy Grzegorz Tobiszowski estimated that the presentation of audit results in JSW closed the stage of diagnosis of the situation of the company, confirming a number of issues that signaled earlier the social side.

– There were omissions, errors, misguided choices – Tobiszowski said, stressing that the diagnosis allows you to go to remedial actions in the company. ZR & oacute; DLO: TVN24 Katowice Strong interest in employee & oacute; JSW guards social

more than 120 employees JSW Coal Company (JSW) has filed a preliminary … see more »

– begins a new stage in which we move to the presentation of the program of restructuring the social workers and negotiations with financial institutions. Go to the stage of the rescue JSW by building a vision that we can impose on information confirmed by the auditors – pointed deputy minister of energy.

Tobiszowski thanked the public for the fact that last fall agreed to renounce (including suspension part due to staff benefits) to save the company.

Commissioned by the Ministry of social energy audit took three Silesian coal companies. Results on Coal Company minister Tchórzewski presented in March, and KHW – in May. On Monday, we discuss the findings of auditors at JSW, where the audit lasted from early March to late May. The situation of the company and its individual mines investigated socially 12 auditors – more than half of these were trade unionists from JSW.



Drainage JSW

The head of the audit team PiS Grzegorz Matusiak, summarizing the findings of auditors pointed out on – as he said – “drainage JSW for eight years and unsuccessful projects.” He said that during the eight years in all kinds of consulting, legal services, sponsoring or advertising transferred a total of 365 million zł.

– In contrast to the misguided investments need to be replaced mainly Rose Grove (ed. Belonging to JSW hotel Gdynia), in which invested nearly 28 million zł, while the value of this property at present is 24 million zł – said the MP. He mentioned also renovated offices of JSW, which cost 76 million zł, compared to the planned 50 million zł. He drew attention to the excessive debt of the company, resulting in a lack of investment funds. ZR & oacute; DLO: tvn24 JSW reached an agreement with bondholders ws. Redemption

Jastrzębska Coal Company reached an agreement with bondholders, committing … see more »

Under the supervision of auditors

auditors pointed out that the income from the lease in the amount of 900 thousand. zł per year, the investment in the hotel “Rose Grove” will return only for 30 years.

– in 2014. despite the fact that JSW has already had a tremendous problem with nearly 5 billion zł debt, decided to purchase mine Knurów-Szczyglowice, taking more than 1 billion zł loan. Today, as a consequence, we have a situation that there is no money for current operations of the company, but above all, lack of investment – said the deputy Matusiak, expressing the hope that the current restructuring will result in healing of 2018.

The report team audit showed that JSW situation deteriorated rapidly. Only in 2014. Debt increased by 2.7 billion zł, for almost 8 billion zł. In that year, he bought from JSW Coal Company mine Knurów-Szczyglowice for nearly 1.5 billion zł. ZR & oacute; DLO: PAP / Leszek Szymanski JSW may in the future to buy back shares in the sold assets

Jastrzębska Coal Company (JSW), which is part of the restructuring preparing … see more »

company’s debt

the debt of the company also noted Minister Tchórzewski.

– In front of us there are negotiations with the party financial, to come to an agreement with these institutions which financed JSW; to deal with such matters, which led to the fact that the debt of the company is too big – said the Minister of Energy.

He added that the debt JSW has increased by leaps and bounds in 2014-2015.

– there has been an increase in the debt by almost 3 billion zł, which did not have to happen – it’s very clearly be seen from the data – pointed Tchórzewski, pointing out the errors in the management of the company.

– the idea of ​​this type of errors management, which have been shown (…) – something that is not necessarily needed the company, such as hotels or various types of redundant assets, renovations, which were located alongside the big money at a time when already in the company was not money. This causes consternation, but it must also lead to concrete reflections regards proposals – concluded the Minister. He thanked the audit team for the performed social work.

– The audit of a lot of give when it comes to preparing and giving a new dimension to the restructuring of the company, showing the background how to manage and directions associated not only with the show abnormalities, but also opportunities to improve the functioning of the company – said the minister, expressing the hope that there is a chance for “a better future for the employees and shareholders of JSW.

serious load

According to the audit team heavy burden on a company’s various advisory and legal, as well as sponsorship and advertising spending. In the years 2005-2016 (the period analyzed, the auditors) was spent for this purpose a total of over 365 million zł. Millions of dollars in contracts were concluded without a tender procedure – we read in the audit.

As stated in the study results, within ten years, this expenditure increased more than seven-fold – from 23 million zł in 2005-2007 to more than 170 million zł in 2012-2014. In the case of sponsorship spending in those years they increased by 235 thousand. percent. – From 17 thousand. zł more than 40 million zł – results from Monday’s information JSW.

According to the deputy Matusiak, “such growth can not be reasonably explained, especially the biggest expenditure auditors observed in the period,” when the company was in a catastrophic situation financial “.

Profit seized Treasury

According to the auditors, even JSW IPO in 2011. it is definitely an insufficient explanation for such a large increase in spending. Sam privatization also raises – we read in the company – “great doubt”. All profits from the shares – 5 billion zł – took over the Treasury. Investment and development of the company is left to do – show auditors.

– The conclusions of the audit team clearly indicate that this reality requires management to immediate restructuring activities. Without them, JSW, as indicated by the auditors may have big problems with the operation. This would mean elimination of 25 thousand. jobs in the company and 80 thousand. JSW in the business environment. For this can not be allowed – the minister said Tchórzewski quoted in the press release.



An in-depth restructuring

Auditors put special emphasis on mine Krupiński in Suszcu, which for years at a loss. Necessary investments would cost 320 million zł and not guarantee the profitability of the mine. The Board lowered the operating costs of the mine, but it’s still not enough.

– a need for in-depth restructuring – Deputy Minister Tobiszowski.

The unions expressed earlier concerns that the mine Krupiński can get to the Company Restructuring mines, where he would end the mining of coal. JSW is not confirmed yet the information.

The auditing team pointed to the “urgent need for organizational changes, the sale of redundant assets, reduce production costs and improve management.”

See strike JSW

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