Marek Belka

Hungarian thread in the Polish scandal

This time we will make a trip to Poland, a country that in the last two weeks has been in political turmoil. It all began with some tapes released by Wprost, a news magazine, on which Marek Belka, governor of the Polish national bank, and Bartłomiej Sienkiewicz, minister of the interior, have a conversation in June 2013. During the conversation, one can hear Sienkiewicz asking Belka whether the central bank would help the government by cutting interest rates if Poland faced an economic meltdown before the elections this year. It appears that Belka says that “his condition would be the removal of the finance minister, Jacek Rostowki.” Rostowski was indeed removed in November 2013, but the national bank did not lower interest rates. Jaroslaw Kaczyński, the leader of the opposition Law and Justice party, said he would call for a no-confidence vote.

But what does all this have to do with Hungary? Well, as it turned out, Wprost had other tapes in its possession in which Polish politicians can be heard talking about international affairs. They certainly don’t mince words when talking about the United States, David Cameron, or, as it turned out, Viktor Orbán. The discussion is studded with such expletives and sexually explicit language that when I wanted to read the details of these conversations in IndexI was confronted with a page on which I had to attest that I was over eighteen. That will give you an idea.

But let’s first introduce you to the cast of characters. First and foremost, there is Radosław Sikorski, Poland’s foreign minister, who just threw his hat in the ring to replace Lady Catherine Ashton as high representative of the Union for foreign affairs and security policy and vice-president of the European Commission. On the released tape Sikorski has a conversation with Jacek Rostowski, the man who lost his job as finance minister last November. I have the feeling that after these revelations, Sikorski can forget about any position in Brussels. I even doubt that he will remain foreign minister of Poland for long.

Perhaps the  most damaging part of Sikorski’s remarks is what he had to say about U.S.-Polish relations, especially after Barack Obama’s visit to Poland and his promise of a billion dollars to beef up defenses in central and eastern Europe. Sikorski asserted that “the Polish-American alliance is worthless, even harmful, as it gives Poland a false sense of security. It’s bullsh..t.” Sikorski on the same tape allegedly said that the Polish people have the mentality of “murzyńkosć,” a derogatory and racially-loaded term meaning roughly “like a Negro.” “The problem in Poland is that we have very shallow pride and low self-esteem,” he added.

It turned out today when the whole tape was released by Wprost that Sikorski also has a very low opinion of David Cameron. The embarrassing details were  immediately reported by the British media. To get the full flavor of the conversation one should read an article published a few hours ago by The Guardian.

These are  juicy stories that are spreading rapidly in the international press. But other tapes were also released, one of which is about Hungary. Russian-Hungarian relations and the legal difficulties of Zsolt Hernádi, CEO of MOL, the Hungarian oil and gas company, were discussed by Dariusz Jacek Krawieć, CEO of PKN Orlen S.A., the Polish refinery, and Włodzimierz Karpiński, current minister of finance. It is that conversation that Index refuses to allow people under the age of eighteen to read. The upshot of it is that Orbán made a very bad deal and that Hungary by this loan agreement became a “vassal” of Russia.

And now on to Zsolt Hernádi, who is being accused in Croatia of paying €5 million to Ivo Sanader in exchange for a 48% stake in INA, the Croatian refinery company owned by the Croatian state. Soon enough formal charges were leveled against Hernádi and an international warrant was issued for his arrest. Hernádi was stuck in Hungary. Otherwise Interpol would have arrested him. It also seems that a former employee and a small investor in MOL sued Hernádi for damages she allegedly suffered as a result of the bribery charges leveled against Hernádi. In the first round, not terribly surprisingly, the court decided in his favor.

Zsolt Hernádi, a close ally and friend of Viktor Orbán / Source; maszol.ro

Zsolt Hernádi, a close ally and friend of Viktor Orbán / Source; maszol.ro

Jacek Krawiec adds spice to this story. Let me quote:

Listen, I’ll tell you a case which shows how different our situation is from that of the Hungarians. I visited Hernádi because he cannot leave Budapest. I asked him: “How many years will you get?” He was cool as a cucumber and smiled broadly. “Listen”–he said–“my lawyers found something. If in any one of the EU countries I am acquitted of these charges then all EU states must accept the verdict and so I can travel again in Europe.” I asked him: “Will this trial take place in Hungary?” He said, “Yes.” So, I told him that this might mean two or three years. His answer was: “There will be a verdict by April.”  Next to him sat a character, a legal director, a puffed-up character, Ábel somebody or other [actually Ábel Galácz, director in charge of sales]. Hernádi turned to him and said, “Ábel, tell Jacek who will bring the suit.” Ábel told me that it is his own wife! Do you understand? Imagine such a situation. The wife is the plaintiff, comes the acquittal, and all is taken care of. Can you imagine something like that happening in Poland?” To which Karpinski added: “This is what Kaczyński is dreaming of in Poland.”

The dates seem to support his story. In the middle of December Krawieć with a large delegation did come to Budapest to conduct business negotiations with MOL. It was on December 6 that MOL announced that a former MOL employee and small investor had sued Hernádi for bribery, corruption and damages resulting therefrom. By January 11, Népszabadság reported that something was fishy about this suit and learned from international legal experts that if Hernádi wins, Croatia must drop the charges and withdraw the warrant issued by Interpol against Hernádi.

So, the suit was a clever charade as even the right-wing press suspected. A reporter for Heti Válasz told Hernádi point blank that “allegedly you move Ilona Bánhegyi [the plaintiff] in order to get an acquittal and the appeal is just part of the ‘game.'” To which Hernádi answered, “I don’t wish on anyone that half an hour I spent waiting for the verdict. Who would place one’s fate in the hands of a judge in such an uncertain and politically charged case? I am only the incidental victim of this story.” Ilona Bánhegyi is appealing the case. I wonder what the judge of the appellate court will say once he reads this story in the newspapers.