CRH denies knowledge of any bribery payment

CRH said yesterday it has no knowledge of any payment such as the $1 million (€827,000) "bribe" alleged by a Polish lobbyist to have been paid to a former Polish government minister.

The multinational cement and building materials group stated it was aware of reports in yesterday's The Irish Times concerning the privatisation of a cement plant in Ozarow, Poland, in 1995.

"It is not clear to CRH that any such allegation was made. However, if such an allegation was made, it is absolutely without foundation.

"CRH did not pay money directly or indirectly or authorise any such payment to any Polish government representative or official and has no knowledge of any such payment having been made."

The company has not been contacted by the Polish authorities about the issue, according to a spokesman.

It is understood the company is studying translations of a transcript of proceedings in Poland in March during which Marek Dochnal said he paid the money to the former Polish minister for privatisation, Wieslaw Kaczmarek. Mr Kaczmarek has said he neither requested nor received a bribe in relation to the privatisation of the cement business.

On March 5th, Mr Dochnal told a Polish parliamentary commission of inquiry that he had paid $250,000 into a Swiss bank account which, he claimed, belonged to Mr Kaczmarek.

"This was for the privatisation of Ozarow?" he was asked.

"Yes," he replied. Mr Dochnal claimed that he paid a further sum, between $600,000 and $700,000 in cash to Mr Kaczmarek but he said that this fell short of the full sum agreed.

"That means that you did not fulfil your commitment 100 per cent?" he was asked.

"You could call it that," he replied.

He agreed that, as far as he was concerned, the Irish had met their commitment and had paid him the amount he agreed on.

Mr Dochnal said that Mr Kaczmarek showed his displeasure at Mr Dochnal's failure to pay the full sum.

"We met at a reception held by the Irish ambassador on the occasion of St Patrick's Day. There was a whole group of us. He ostentatiously refused to shake hands with me," he said.

In his testimony, Mr Kaczmarek said that he did not know Mr Dochnal personally.

"I didn't meet him personally. However, at a certain stage I was informed that the main lobbyist, the person who intended to bring the Irish CHL (sic) group into the Polish cement industry, was Mr Marek Dochnal," he said.

Sources close to CRH said a consortium, Holding Cement Polski (HCP), was established to buy the formerly government-owned plant, with Mr Dochnal's company, Larchmont Capital, holding 40 per cent.

When Larchmont found it had difficulties with funding, it approached CRH to see if it would come on board as a partner. However, CRH responded by saying it was only interested in taking on the Larchmont shareholding.

CRH paid £29.7 million (€37.7 million) for the 40 per cent stake. In time, another major HCP shareholder, Elektrim, was bought out by CRH.

The source said the plant's privatisation was handled by a World Bank division and it was with this division that HCP negotiated. The only contact CRH had with Mr Dochnal was in relation to the purchase of the Larchmont stake in HCP, according to the source. "He did not represent CRH at any stage," he said.

Mr Dochnal is awaiting trial on a separate bribery charge.