Former Orlen Managers on Trial for $400 Million Oil Deal Losses in Poland
Polish Prosecutors Indict Former Orlen Executives Over Crude Oil Contracts
Background of the Case
WARSAW, Aug 7 (Reuters) - Three former managers of Polish refiner Orlen and one of its subsidiaries face up to 25 years in prison, prosecutors said on Friday after filing an indictment over crude oil supply contracts that caused losses of nearly $400 million.
Details of the Losses
Polish prosecutors have been investigating for more than two years the loss of $378 million in prepayments made by Orlen for goods, mainly Venezuelan crude oil, that were never delivered.
Charges Against the Defendants
The defendants were charged with failing to properly supervise and safeguard the assets of Orlen and Orlen Trading Switzerland (OTS) by entering into three contracts for crude oil purchases that prosecutors say were detrimental to the companies and resulted in substantial losses.
Individuals Involved
Identities and Responses
All the defendants - identified under Polish privacy laws as Michal R, a former member of Orlen's management board; Marcin O, a former member of OTS' management board, and Filip W, a former executive director of Orlen and OTS - have denied wrongdoing.
Ongoing Investigations
Former OTS Chief Samer A.
Prosecutors said an investigation is continuing into former OTS chief Samer A., who was detained in the United Arab Emirates last year. Poland has requested his extradition.
Comments and Reactions
Reuters has been unable to reach any of the four for comment.
Orlen did not immediately respond to a request for comment.
(Reporting by Anna Koper; Editing by Kirsten Donovan)
