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Viewing cable 06WARSAW7, Poland's new Treasury Minister Resigns amid

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Reference ID Created Released Classification Origin
06WARSAW7 2006-01-04 15:22 2011-08-24 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Warsaw
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 WARSAW 000007 
 
SIPDIS 
 
Sensitive 
 
STATE FOR EUR/NCE DAVID KOSTELANCIK AND MICHAEL SESSUMS 
USDOC FOR 4232/ITA/MAC/EUR/JBURGESS, MWILSON, JKIMBALL 
TREASURY FOR OASIA MATTHEW GAERTNER 
FRANKFURT FOR TREASURY JIM WALLAR 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PREL PL
SUBJECT: Poland's new Treasury Minister Resigns amid 
Corruption Allegations 
 
This cable is sensitive, but unclassified, and NOT for 
Internet distribution. 
 
------------------------ 
SUMMARY AND INTRODUCTION 
------------------------ 
 
1. (SBU)  Begin Summary.  On the evening of January 3, Prime 
Minister Marcinkiewicz accepted the resignation of  Treasury 
Minister Andrzej Mikosz.  Mikosz's resignation was forced by 
an article published in the daily "Rzeczpospolita" detailing 
a loan worth US $300,000 which Mikosz's wife gave to an 
individual accused of shady dealings with a legendary 
gangster and of illegal transactions on the Warsaw Stock 
Exchange.  The former minister failed to provide a 
convincing answer as to why his wife lent the money, but 
hinted that his resignation was the result of a massive 
assault triggered by his privatization plans, which he said 
put at risk the interests of some powerful players.  PM 
Marcinkiewicz announced that he expects to name a new 
Treasury Minister within days.  Rumors are also circulating 
that Minister of Labor and Social Policy Michalkiewicz and 
Minister of Finance Lubinska will also resign or be asked to 
leave.  End Summary. 
 
--------------------------------------------- ------------ 
Rzeczpospolita Accuses Mikosz's Wife of Questionable Loan 
--------------------------------------------- ------------ 
 
2.  (U)  According to an article in the daily 
Rzeczpospolita, reported on its front page on January 3, 
Krystyna Mikosz, the wife of Treasury minister Andrzej 
Mikosz, in 2002 lent US$300,000 to the mother of Witold W., 
an investor who has had legal problems for over 10 years. 
(Note:  In Poland, suspects' initials, rather than their 
surnames, are used to protect their innocence until found 
guilty.  Post has been unable to determine the investor's 
surname.  End note.)  The funds were used by her son. 
During an interrogation in 2003, the woman said she had no 
idea where the money in her brokerage accounts came from. 
Witold W. was the financial advisor to the deceased gangster 
Nikodem Skotarczyk, known as "Nikos," and both are accused 
of money laundering.  Witold W. is also accused of 
manipulating the share price of the company KOPEX, listed on 
the Warsaw Stock Exchange. 
 
--------------------------------------------- -- 
Marcinkiewicz Consults with President Kaczynski 
--------------------------------------------- -- 
 
3.  (U)  PM Marcinkiewicz was reportedly reluctant to accept 
Mikosz's resignation, but accepted it late in the day after 
consulting with President Kaczynski.  After accepting 
Mikosz's resignation the PM said that "not even the 
slightest shadow of doubt may hang over those who are to 
implement the master plan of cleaning up all areas of public 
life."   Marcinkiewicz, in a TV interview, praised Mikosz 
for his work at the Ministry and stated that he plans to 
continue Mikosz's privatization strategy. 
 
------------------------------------------ 
Some Applaud while Others Bemoan Dismissal 
------------------------------------------ 
 
4.  (U)  Opposition parties welcomed the resignation, with 
Civic Platform's (PO) Jan Rokita speculating that the Law 
and Justice (PiS) leadership wanted to dismiss the minister 
anyway.  Rumors about Mikosz's dismissal began before 
Christmas, with one of the reasons cited being his objection 
to Unicredito taking over Bank BPH.  (Note:  Italian Bank 
Unicredito is merging its subsidiary Pekao SA with BPH in a 
deal that will create the largest bank in Poland.  Mikosz 
publicly opposed the deal, alleging that Unicredito breached 
the Pekao privatization agreement.  The deal has not been 
finalized and is awaiting Banking Supervision approval. 
Brokers believe the deal has a better chance of approval now 
that Mikosz is gone.  End note.) 
 
5.  (U)  Commentators are divided on Mikosz's dismissal. 
Some believe he had to go because of his murky contacts and 
extensive business experience, while others regret his 
dismissal, citing his technical expertise and liberal 
economic approach.  Supporters noted that Mikosz was a 
minister with a vision and implementation plan, but was a 
technocrat and not a politician, which hampered his 
effectiveness.  Mikosz's aggressive privatization plan, 
which included continuing privatizations in the energy 
sector, chemical sector, and coal industry, and his plans to 
settle the long-standing Eureko-PZU dispute, while supported 
by Marckinkiewicz, ran afoul of less market-oriented 
politicians.  A number of influential PiS and LPR members 
publicly opposed Mikosz, including Jaroslaw Kaczynski, who 
stated that if he were heading the government, Mikosz would 
not be a part of it.  According to Adam Szejnfeld (PO), 
Mikosz's privatization plan did not go far enough for PO, 
but went too far for the League of Polish Families (LPR). 
Szejnfeld opined that Mikosz's successor will have a more 
conservative approach to the market economy and 
privatization process. 
 
------------------------------ 
Speculation about New Minister 
------------------------------ 
 
6.  (U)  PM Marcinkiewicz stated that he will name a new 
Minister of Treasury within a few days.  The next minister 
will undoubtedly have a political background and support 
within PiS.  There is speculation that Wojciech Jasinski (a 
PiS MP, head of the Sejm's public finance committee, and 
known to be a Kaczynski ally) will take Mikosz's place. 
 
----------- 
Who's Next? 
----------- 
 
7.  (U)  Warsaw is rife with rumors that Mikosz is only the 
first minister to go.  According to press reports, Minister 
of Labor and Social Policy Krzysztof Michalkiewicz plans to 
submit his resignation within days.  Finance Minister Teresa 
Lubinska might be dismissed, but PM Marcinkiewicz refused to 
comment on this during yesterday's press conference.  The 
rumor mill has PiS insider and Lubelskie region Voivoid 
(governor) Adam Cichocki, tipped for Michaelkiewicz's 
replacement, and former PO member and economic expert Zyta 
Gilowska named as Lubinska's replacement.  Gilowska has 
denied the rumors. 
 
------- 
Comment 
------- 
 
8.  (SBU)  Minister of Treasury Mikosz's forced resignation 
removes a technical expert with excellent economic and 
business credentials from the Marcinkiewicz cabinet, but it 
is too early to tell if this will hurt Marcinkiewicz 
politically.  Mikosz's privatization plan, while less 
aggressive than some in Platforma would have liked, would 
have speeded up the process - Mikosz was widely quoted as 
saying that he wanted to be the last Minister of Treasury. 
While Marcinkiewicz's assertion that the government will 
follow Mikosz's plan is heartening, Post believes it 
unlikely that PiS will be able to implement the plan absent 
a new minister with stronger political support in PiS. 
Hillas