Azoty Police files notice of suspected crime to public prosecutor's office

Listed chemical group Azoty Police has filed a notice to the prosecutor's office on suspicion of an offence involving the unwarranted and unintentional transfer in 2018 by the group to DGG Eco of registered shares in African Investment Group worth PLN 6.6 million (EUR 1.5 mln), Azoty said in a press release.

It was reported that, in return, Grupa Azoty Police did not receive the funds agreed with DGG Eco in the amount of PLN 180 million (EUR 41.9 mln), by which, according to the notification, damage of at least PLN 180 million (EUR 41.9 mln), was caused to the company.

In 2013, Azoty Police Group, under an agreement with DGG Eco, acquired 550 shares in the share capital of African Investment Group in Senegal. The purpose of the investment was to start the construction of a phosphate mine, a raw material necessary for the production of phosphate fertilisers.

As indicated, as a result of the 2018 agreement signed between Azoty Police Group and DGG Eco, Azoty Police Group officially withdrew from the investment concerning the phosphate mine in Senegal. Such an agreement was signed despite the fact that the persons who coordinated the course of work on the side of Grupa Azoty Police had knowledge that DGG Eco did not have the financial resources to satisfy the financial claims of the Police company.

"(...) prior to the signing of the agreement, Azoty Police Group received an offer from a credible, large foreign investor for cooperation on the phosphate mine and the construction of a phosphoric acid plant next to it. The investor acquired 45 percent of the shares in AFRIG S.A. from a minority shareholder during this period, which confirmed the investment potential for the construction of the mine, as well as the possibilities in the area of joint project development by Azoty Police and the potential investor," the group wrote in the notice.

"Despite the prospects for cooperation and the knowledge of the lack of financial resources by DGG Eco, Azoty Police Group decided to sign the agreement, and the amount of property damage indicated on this account in the notification to the prosecutor's office is at least PLN 180 million," it concluded.

The notice was submitted to the Regional Prosecutor's Office in Szczecin.

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