BRATISLAVA, September 30, (WEBNOVINY) — The previous government and ministers of agriculture who were nominees of the LS-HZDS made a “huge tunnel“ to siphon off funds from the state-run forestry company Lesy SR. Agriculture Minister Zsolt Simon (Most-Hid) told journalists on Thursday that the company concluded several disadvantageous contracts in the previous period obliging it to supply such large amounts of timber that Lesy SR could not have realistically deliver and consequently it paid fines for violation of the respective contracts.
The minister said that another negative consequence was that big companies processed all timber while small processing companies and sole traders had to stay away. The minister has already ordered to examine these contracts. He did not rule out that the result might lead to criminal prosecution.
Simon has decided that Lesy SR will have to use electronic auctions in timber sales. The e-auction system should be gradually launched beginning next year. From 2012, all timber sales should be mediated through e-auctions. The minister hopes the measure will prevent speculative deals with timber.
SITA