The holding performed its task properly, however according to NIK the companies could have as well been privatised by the Ministry of Treasury. It would have made it possible to avoid the costs of PHF functioning, which were significant. Only in the period 2007-2011 (August) the costs were nearly PLN 19 million, of which nearly a half were salaries (the average salary in the capital group was two and a half times higher than in the Ministry of Treasury). Besides, the State Treasury could have received PLN 46 million more from the dividend than the holding paid at that time. It is also important that entrusting PHF with the privatisation of companies did not speed up the process.
NIK positively evaluated the privatisation measures of the Ministry of Treasury. From 2007 to 2011, the Ministry sold - despite unfavourable economic conditions - the stocks and shares of 14 out of 18 companies from the pharmaceutical sector (from the group of companies under supervision, PHF was excluded - as designated for liquidation - and the commercialised Biomed was incorporated). The revenue from that sale was PLN 560 million. Direct costs of the privatisation amounted to PLN 3 million. The Ministry of Treasury did not find any buyer for the minority block of shares of Cefarm Rzeszów. Also the privatisation of two companies being in a difficult economic standing and encumbered with unnecessary real estates of Biomed and Polfa Tarchomin also ended in a failure. Already after the audit, the Office of Competition and Consumer Protection consented to the privatisation of Cefarm Warszawa and Polfa Warszawa.
During the audit, NIK confirmed that investors mostly complied with their obligations arising from the privatisation agreements. Otherwise, the Minister of Treasury collected due penalties.
Although the NIK auditors positively evaluate the privatisation measures taken by the Ministry of Treasury and the Polish Pharmaceutical Holding, they identified some irregularities in 1/3 of the audited transactions:
- the Ministry of Treasury, while withholding the privatisation of Cefarm Białystok, did not take advantage of the market conditions that prevailed until the mid-2007 and did not sell the shares with any profits. It was reflected in a fall in the recommended company goodwill and resulted in a reduction of the price offered by the investor during the negotiations (Farmacol SA paid PLN 19 million less for the shares, as compared with its previous offer). Additionally, the Minister of Treasury accepted the investor’s condition and gave up the dividend (nearly PLN 6 million) from the profit generated in 2008.
- no attempts were taken to lift the price for the shares of Cefarm Wrocław, although the valuation and recommendations of the privatisation advisor suggested it would be advisable (for the sold block of shares one could expect almost PLN 3 million more). According to the Ministry of State Treasury, the price for the block of shares was satisfactory and at the same time higher than the lower threshold of the company valuation.
- according to NIK, the decision of the Ministry of Treasury to refinance the costs of privatisation of Polfa Pabianice for the Polish Pharmaceutical Holding (the costs of legal analyses, media and advertisement) in the amount of PLN 1.2 million was uneconomic. After all, the State Treasury provided the holding with funds enabling it to operate and cover all costs, not only direct costs of the privatisation.
- The Ministry of Treasury sold too many shares of Cefarm Kraków, that is why it was essential to buy back a part of shares so that the employees could acquire them free of charge. The error resulted from an incorrect record in the IT system of the Ministry of State Treasury.
- According to the auditors, the Ministry of State Treasury unnecessarily mandated re-valuation of shares of Cefarm Rzeszów for nearly PLN 50 thousand. Instead, one could demand an update of the estimation made before.
