The Polish power and telecommunications company Elektrim SA has been in bankruptcy proceedings since 2007.  It still controls, (and owns an estimated 47% of),  Zespol Elektrowni Patnow-Adamow-Konin SA (“ZE PAK”).  ZE PAK generates about 8.5% of all of Poland’s electricity, as was just mentioned by “Enea, ‘Several’ Others Bid for Polish Power Group PAK (Update2)“.

Elektrim is also the subject of a criminal investigation by Warsaw prosecutors who have uncovered alleged irregularities believed to have occurred between 1999 and 2002.  They claim that Elektrim may have failed to perform trade agreements and conceivably caused property loss in violation of Article 296 paragraphs 1 & 3 of Poland’s Criminal Code.

These same prosecutors additionally appear to be focused on U.S. businesswoman Barbara J. Lundberg, who had been Elektrim’s president from 1999 until she was fired in 2001.  Time Magazine’s “Mrs. Big’s Big Deals” published in 2000, had characterized Ms. Lundberg as “one of Warsaw’s most influential executives“.  The Warsaw prosecutors meanwhile claimed via their March 21, 2006 letter rogatory pictured below, that there were “changes in the existing profile of the company’s business” after Ms. Lundberg became Elektrim’s president:

 (To Read The Letter Rogatory Click On The Image Above)

According to the prosecutors’ letter rogatory, Ms. Lundberg had possibly facilitated suspicious business deals while she was at Elektrim.  The letter rogatory for instance, speculated at page 3, that Ms. Lundberg might have “received a success fee” and may have otherwise personally benefited from Elektrim’s $325 million dollar purchase of shares in the Bresnan International Partners Poland Limited Partnership (“BIP Poland LP”).

The letter rogatory alleged that while Ms. Lundberg was Elektrim’s president, she could have been a director of a U.S. Delaware-based company which might have been the sole partner in BIP Poland LP.  If these allegations are actually true, then Elecktrim’s $325 million dollar share purchase in BIP Poland LP may have been between related parties and might not have been at “arm’s length“.

A March 4, 2010 Order from the federal court in Delaware approved the execution of the Warsaw prosecutors’ letter rogatory.  The Delaware U.S. Attorney can therefore elicit evidence from the Delaware witnesses mentioned by the letter rogatory.  Said letter rogatory is the fourth one connected to Polish investigations filed in Delaware federal court since October 2009.  I discussed some other Polish investigations at “Following The Money Trail From Poland To Delaware” and / or at “The High-Risk Geographical Location Of Delaware“.

(Edited June 13, 2010)

Copyright 2010 Fred L. Abrams