Misuse of Slovak Koruna Central Parity Rate Change (with Epilogue)
"I want to guarantee that the Slovakia's Government will not leave anyone at the mercy of speculators who may try and take advantage of the koruna-euro changeover.
We will do our utmost to make this great historical success for Slovakia as a state but also to see that every single individual feels euro adoption to be a personal success. Otherwise, euro adoption would have made no sense,"
(Slovakia's Prime Minister Robert Fico at European Council summit, Brussels, June 19.)
Introduction
Speaking at a special news conference on Tuesday, June 17, opposition SDKU-DS MP and former finance minister Ivan Miklos confirms official suspicions about a leak of confidential information from the top Slovakia's Government, regarding its negotiations with the European Union on the central parity rate of the Slovak koruna, and joined with it illegal self-enrichment.
Epilogue
The introduction of the euro to Slovakia has its first winners.
Slovak financial groups J&T and Istrokapital celebrates their big enrichments.
Finance Minister Jan Pociatek, the best friend of financial groups and generally a good guy, remains on the position enjoying his good reputation and may be something more.
The governing coalition once more publicly demonstrated its brutal matchless power on Slovak political market.
The opposition once more appeared as absolutely useless appendix and confirmed they are not able to concur Smer-SD party and Robert Fico personally.
Scandal chronicle
June 17
The National Bank is asked to investigate the issue and present in Parliament a detailed report on the negotiations on the change of central parity and on the trading in Slovak koruna in the run-up to the announcement.
The report, according to Miklos, should either refute or confirm suspicions of an information leak that allegedly occurred on May 28. "Should it turn out to be true ... it would be a severe violation of multiple laws and bad also in terms of casting doubt on Slovakia's entry into the eurozone," he says.
Miklos further states that a number of Slovak financial groups, notably J&T and Istrokapital, were actively, markedly more then on other days, trading around that time.
The introduction of the euro to Slovakia already has its first winners," he said.
June 18
Plus Jeden Den daily reports that Slovakia's Finance Minister Jan Pociatek and Bratislava airport (owned by state) director Karol Biermann paid a visit to J&T financial group co-owner Ivan Jakabovic shortly before the Slovak koruna's central parity rate against the euro was lowered in May.
According to the daily, the meeting took place on Jakabovic's yacht on May 24-25 at the Monaco Formula One Grand Prix. The article also noted that banks purchased large amounts of Slovak korunas late in the afternoon of May 28. Brussels lowered the central parity rate to 30.126 SKK/EUR that night.
In reaction, Prime Minister Robert Fico confirms the fact and publicly criticizes Finance Minister Jan Pociatek.
Probably being inspired European Football Championship, Fico says that he intends "to show Pociatek the yellow card".
"It's bad if somebody has misused information, but I ask myself whether the state has been harmed," says Fico, remarking that he is "no master of finance".
Finance Minister Jan Pociatek says in response at the special press conference that he understands and accepts Prime Minister Robert Fico's criticism.
Following football jargon introduced by Fico, Pociatek responses he "accept the yellow card shown ... It doesn't mean the end of the match...".
At the same time, Pociatek denies there was any leak of information about the lowering of koruna's central parity rate.
Pociatek brought a prepared speech along to his press conference, but had trouble reading it, and when journalists began asking questions his explanations became all muddled up.
Foolowing opposition statements, the information about the possible harm to Slovakia's entry into the eurozone is beside the point. Most important is that some people may have enriched themselves based on illegally obtained information. It should not endanger Slovakia's entry to eurozone, it could however hurt the country's credibility.
June 20
Opposition MPs announce the movement to call of Finance Minister Jan Pociatek.
At the same time Pociatek announces that he decided to offer a resignation once Prime Minister Robert Fico is back from business trip.
June 23
Slovak Prime Minister Robert Fico (Smer-SD) said he doesn’t see any reason for Finance Minister Jan Pociatek (Smer-SD) to resign.
According to the opposition, the reasons why Finance Minister Jan Pociatek should be dismissed are still valid, despite Premier Robert Fico's decision not to accept his resignation. The Opposition will therefore support a vote of no-confidence in Pociatek in Parliament.
June 25
Parliament rejected an opposition no-confidence motion in Finance Minister Jan Pociatek.
Opposition silently blames Prime Minister Robert Fico in favoritism and double standards usage.
(SK Today, compiled from press reports)
Photos: Slovakia's Prime Minister Robert Fico; Slovakia's Finance Minister Jan Pociatek. (TASR)