NKU Finds Mismanagement at MH Management, Calls for Shutdown

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A protest of dissatisfied staff from Mondi SCP Ruzomberok complaining about the company's privatisation and calling for compensation from MH Management. (Stock photo by TASR)

Bratislava, May 15 (TASR) – MH Management – a successor of the National Property Fund, administering state property in several companies with the total worth of almost €250 million – should be shut down, as it’s far from meeting its original purpose, recommended the Supreme Audit Office (NKU) on Friday following a recent inspection.


The NKU recommends transfer of the MH Management’s agenda to an existing ministry.
NKU’s inspectors found several instances of mismanagement at MH Management, for example, in office and car leasing. In addition, several risks were identified in 39 unfinished court trials with the involvement of MH Management, which doesn’t have enough funds in its budget to cover possible related expenses.

“The cost of its own operations and external legal services, including contracts with law office JUDr. Radomir Bzan has been several-fold higher than the company’s income, meaning that MH Management has spent 90 percent of the financial resources inherited from the National Property Fund,” said NKU spokesman Marek Papajcik.

While MH Management had €39 million at its inception in early 2016, only €4 million remained by the end of 2018. Meanwhile, the state administrator’s cumulated income from 52 state companies represented a mere €2.8 million in the aforementioned period. Moreover, MH Management sent only €74,400 to the state budget, while it consumed the rest for its own operations.

The inspectors have revealed that €30 million has been spent on legal services and court disputes concerning privatisation in the past, for example Mondi SCP Ruzomberok (Zilina region) paper mill and Sliac spa (Banska Bystrica region). Almost two thirds of the amount (€19 million) went to Bzan’s law office.

The Economy Ministry in a reaction stated that the inspection confirmed minister Richard Sulik’s suspicions of “typical Smer larceny”, and added that a shutdown of MH Management is one of the options.