Current report no 76 / 2016

Budimex SA has received a statement of claim filed by the State Treasury - the General Director for National Roads and Motorways

The Management Board of Budimex S.A. hereby informs that it has received a statement of claim filed by the Plaintiff – the State Treasury – the Director General for National Roads and Motorways (“Plaintiff”/“DGNRM”). The Defendants include Budimex S.A. and two other entities (“Defendants”). The Plaintiff demands adjudication of its claims severally from the three Defendants. The case is related to the public tender “Construction of a section of the S8 road Piotrków Trybunalski – Rawa Mazowiecka”, which was settled in 2009 and has not been performed by Budimex Dromex S.A. (a company from the Budimex group – member of one of the consortia participating in the said tender, acquired by Budimex S.A. pursuant to Article 492(1)(1) of the Commercial Companies Code).

The subject of the litigation covers damages concerning, in accordance with the statement of the claim, forbidden “agreed practices” “by substituting autonomous economic decisions with arrangements made between competitors that submitted bids in a single public tender”. In the Plaintiff’s opinion, as a result of that breach the object of the contract specified above had been performed at a price much higher than the price which would hypothetically have been accepted and paid had no competition-limiting practices been in place. It has to be emphasized for the record that the said contract has been executed at a price lower than the Employer’s (Plaintiff’s) budget. The basis for the claim also includes Articles 415 and 416 of the Civil Code.

Value involved in litigation: PLN 539,957,535 (five hundred thirty nine million nine hundred fifty seven thousand five hundred thirty five PLN) plus statutory interest counted from 17 July 2009 until the date of payment.

An analysis of the statement of claim demonstrates that the claims subject thereto are groundless.

Fundamental evidence in the case includes materials used during a previous criminal procedure, which Budimex S.A. was not a party to and did not participate in. The procedure was concluded with a final acquittal in two instances. The Courts of both instances deemed that the witness testimonies and explanations provided by the defendants did not confirm entering into an arrangement and acting to the detriment of an institution (General Directorate for National Roads and Motorways) for the benefit of which the tender was held. As it stems from the acquired information, a last resort appeal concerning the criminal case has been filed with the Supreme Court. 

However, the Plaintiff did not demonstrate the necessary premises for damages, although such a demonstration is its obligation. Budimex does not agree with the statements made in the statement of claim as to the principle and amount. The statements are deemed to be illegitimate; therefore, no provisions will be established. The claim shall have no impact on Budimex’s performance.