Premier Files Criminal Complaint in Connection with Volvo Plant Construction

Premier Files Criminal Complaint in Connection with Volvo Plant Construction
From right, Premier Robert Fico and Economy Minister Denisa Sakova at the Valaliky Industrial Park on November 28, 2024 (photo by TASR)

       Valaliky, November 28 (TASR) - Premier Robert Fico (Smer-SD) and Economy Minister Denisa Sakova (Voice-SD) have announced the filing of a criminal complaint in connection with preparations of the area for the construction of the new Volvo car factory in Valaliky (Kosice region), citing the concealment of information about the high groundwater level in the area, which has led to additional costs of around €50 million, TASR learnt on Thursday.
        "We're filing a criminal complaint at the Prosecutor-General's (PG) Office against the perpetrators who concealed the fact that this area is burdened with groundwater. On the basis of this concealment, the state has spent €50 million extra, and we believe that this is a serious crime to which the Prosecutor-General's Office should respond by initiating a criminal prosecution and then filing charges," said Fico at the industrial park.
        According to the premier, the previous management of state-owned company Valaliky Industrial Park (VIP), which was in charge of the area, concealed two expert reports that warned of high groundwater. The prime minister also mentioned the Supreme Audit Office's (NKU) findings.
        Fico went on to say that additional measures taken by the former VIP management to address the problem cost roughly €25 million. "From the beginning everything was neglected, and when it was discovered that the area was burdened with groundwater and the new management came in, new measures had to be taken, which we've come to check now. It mainly concerns drainage, various draining measures. And this was another €24 million or so in total that we had to spend from state money," stressed the premier, blaming the current opposition, part of which was previously in government, for this state of affairs.
        Sakova confirmed that the preparations for the project didn't take into account the high groundwater level, and she also pointed to the setting of unrealistic deadlines in the investment contract and poor management of the project preparation and implementation, which was also stated by NKU. According to her, the construction of the industrial park is not at risk. However, the car factory hall, which Volvo has already built, had to be raised by half a metre due to the groundwater. "If Volvo wanted to, it could apply some penalties. So far it has only claimed the €7.7 million in costs incurred when additionally raising the building, but we've agreed that this will be paid with the acceptance of new milestones corresponding to the work we had to do to drain the area," she said.
        Former Economy Ministry state secretary Karol Galek (Freedom and Solidarity/SaS) has denied that information about the problems with the groundwater was concealed. "This report was not classified, it was provided to the project architect, the contractors and the investor and, moreover, if a survey is financed from public funds, it cannot be classified by law," said Galek, adding that the budget for the groundwork left a reserve of €45 million.
        The official construction work on the industrial park in Valaliky, where Volvo will produce electric cars, started in February 2023. The construction work is being prepared by VIP, a company set up by the Economy Ministry.