The coffers of Law and Justice are empty, reported the weekly "Newsweek" on Tuesday afternoon (August 20), citing sources within the party. Despite the lack of funds, the party's obligations remain, including a 15 million PLN loan taken out for last year's election campaign. The repayment deadline passed at the end of July.
PiS Funds Running Dry? "The Party Is Unable to Repay the Multi-Million Loan"
PiS had until the end of July to repay the loan. As the weekly noted, it is unclear whether the deadline was for the full repayment or just one installment. Nevertheless, no money has been transferred to PKO BP. The repayment was linked to the anticipated decision by the PKW regarding the reimbursement of funds for the autumn campaign. However, no decision has been made yet, as the commission is still investigating irregularities in the party's campaign financing. This is a significant problem with another election campaign just around the corner. "If we don't get the funds from the state subsidy, we won't make it," admitted one PiS politician in a conversation with "Newsweek."
From August, PKO BP is expected to start charging penalty interest on PiS. When asked if the party's account had been seized, a bank representative told the weekly that "this information is protected by banking secrecy." According to experts cited by "Newsweek," if PiS fails to repay the loan, the party could face enforcement proceedings or seizure of assets. "If the bank and PiS don't reach an agreement, the bank will collect the money in any way it can. It's worse for PiS to wait, as they might get nothing, than to admit fault and receive most of the money," an expert told "Newsweek."
PKW to Decide on PiS Financial Report. What If It's Rejected?
According to the Political Parties Act, if the PKW rejects the financial report, the party risks losing 75 percent of that amount and the same percentage for the so-called campaign reimbursement. From 2019 to 2023, PiS received 23.5 million PLN annually in subsidies from the state budget. After winning the elections, this amount increased to 25.9 million PLN. In total, this amounts to approximately 104 million PLN in this term. Losing 75 percent of this amount would mean nearly 78 million PLN. Additionally, 75 percent of the approximately 30 million PLN in campaign costs would also be lost. In total, PiS could lose around 100 million PLN following the PKW's decision.
On July 31, the PKW did not make a decision on PiS's financial report. The decision was postponed to August 29. The commission instead requested additional information from the Government Legislation Center and NASK (a state research institute). This includes information on the costs of analyses commissioned by the Prime Minister's Office and the Ministry of Digital Affairs in the weeks leading up to the parliamentary elections. Concerning the Government Legislation Center, the PKW wants information on the duties and salaries of specific individuals employed at the RCL.
