Polish refiner Orlen has reportedly incurred losses of PLN5bn (€1.2bn) on its Olefins 3 petrochemicals project, a government minister said on November 27, citing the findings of an audit into state-controlled companies under the previous administration.

The audit, conducted by the Ministry of State Assets after the new coalition government led by Donald Tusk assumed power, identified significant financial mismanagement in state-owned enterprises. This included failed investments and unjustified expenses amounting to "several billion zlotys", said State Assets Minister Jakub Jaworowski.

Orlen’s losses were highlighted as particularly significant, according to the ministry. Daniel Obajtek, Orlen's CEO from 2018 to 2024, was a PiS political appointee who is now an MEP for PiS.

Following changes to its executive board, the Warsaw-listed company announced earlier this year that it would reassess the Olefins 3 project. However, a final decision on whether to optimize, suspend, or terminate the project has yet to be made.

The audit has resulted in approximately 50 notifications of potential criminal activity being submitted to the prosecutor's office, with additional cases possible, the ministry said.

Executives from state-owned companies who served under the previous Law and Justice (PiS) government have consistently denied allegations of misconduct, describing the audit and its conclusions as “political”.

The government is investigating a PLN1.6bn ($370mn) loss incurred by Orlen's  Swiss subsidiary, Orlen Swiss Trading (OTS), in a crude oil supply deal with a little known counterparty that reneged on the deal. Obajtek allegedly disregarded warnings from the company's security team about Samer A., a Lebanese national hired by Obajtek to head OTS, who is believed to be responsible for the crude oil supply deal. 

In Q2 Orlen reported a loss of PLN40mn (€9.3 million), against the PLN6.1bn profit in the same period last year.