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Grupa Azoty S.A. has filed a criminal complaint alleging suspected misconduct related to non-compete agreements for former Management Board members, potentially resulting in financial damages exceeding PLN 4 million.
The complaint alleges that amendments made with seven former members of Grupa Azoty’s Management Board secured them six months of post-employment compensation without the possibility for the company to cancel these agreements. Prior to the amendments, pre-2021 non-compete agreements allowed Grupa Azoty to terminate the non-compete obligation.
The circumstances surrounding these amendments and the internal negotiations conducted with relevant organizational units indicate actions that served the financial interests of individuals managing Grupa Azoty’s assets, to the detriment of the company. Additionally, these actions seem to have been directed toward securing financial benefits for the parties involved. The steps taken to prevent cancellation of the non-compete clauses are particularly significant, given the record losses reported by Grupa since Q4 2022.
The complaint has been filed with the District Prosecutor’s Office in Tarnów.
To protect its interests, Grupa Azoty immediately terminated the amended agreements, resulting in the suspension of compensation payments to former board members, as the company considers these amendments void.
Last week, Grupa Azoty announced it had filed a criminal complaint regarding non-compete agreements for management personnel (directors). This complaint highlighted findings from an internal audit revealing irregularities in amending post-employment non-compete agreements with management in the latter half of 2023. These changes were made in violation of internal regulations and contained documentation irregularities, appearing to serve the financial interests of the individuals involved rather than the company. The suspected misconduct posed a direct risk of nearly PLN 500,000 in financial damage to the company.
Grupa Azoty is conducting comprehensive audits across the Capital Group to review operations over recent years, in response to record losses recorded since Q4 2022, ineffective corrective measures, investments, and contractual arrangements. As a result, initial criminal complaints have already been filed, addressing issues such as sponsorship and advertising agreements, the Polish National Foundation, and agreements with the former President of Chemik Police.