Enterprising
duced Roman Polanski's Oscar-winning movie
tiate financial compensation that APV owed
The Pianist, solicited a bribe of $17.5 million
to the local municipalities for privatizing real
mayors and city
from a former dissident and editor of a Polish
estate that was formerly in their ownership. A
councilors have
daily newspaper Gazeta Wyborcza, Adam
public scandal broke out over the fee paid to
turned regional
Michnik. In exchange for the money, Rywin
Tocsik, 50 percent of which she transferred
promised to get the socialist government to
to companies owned by two politicians--
politics into a
amend the media legislation so that Gazeta's
Laszlo Boldvai, a treasurer of the governing
gold mine.
parent company, Agora, could enter the pro-
Socialists, and Gyorgy Budai, a businessman
tected TV market dominated by the Polish
close to the liberals. Tocsik transferred $1.2
state broadcaster. Rywin claimed to speak for
million to Boldvai and $613,000 to firms
the ruling Alliance of the Democratic Left. The
controlled by Budai. Those financial trans-
media also reported that Prime Minister
fers raised suspicion that Tocsik's contract
Leszek Miller (200104), who was a friend of
was part of a deal to clandestinely finance the
Rywin, and Aleksander Kwasniewski, the ex-
two coalition partners. In 2002, Tocsik
communist president of Poland (19952005),
received a 4-year prison sentence. Similarly,
were aware of the shakedown. Miller resigned
Csaba Schlecht, the former treasurer of
and the Polish left was obliterated in the 2005
Viktor Orban's Fidesz, sold 17 companies to
election, which brought the Kaczynski broth-
two foreigners who later claimed total igno-
ers to power.55
rance of the sales. The proceeds from the
sales were used to channel money that fueled
As can be seen, state intervention in the
Fidesz's reelection campaign.53
economy remains a serious problem in
Central Europe. As long as the state remains
One of the first major corruption scandals
large in size and scope, there will be plenty of
in the Czech Republic after the collapse of
opportunities for corruption. In order to
communism involved the funding of the
minimize corruption, therefore, the role of
governing Civic Democratic Party (ODS). In
the state in the economy must be reduced.
1995, a businessman named Milan Srejbr
donated $400,000 to the ODS. As Srejbr was
about to "privatize" a steel mill, someone in
Communist Involvement in
the ODS decided to cover up the donation by
Business and Politics
attributing it to a number of fake sponsors.
Alas, some of the fake sponsors had been
dead for some time. The prosecutor charged
One of the disappointments of the transi-
Libor Novak, the deputy chairman of the
tion process in Central Europe is the contin-
ODS, with tax fraud. Under Czech law, dona-
ued involvement of former communists and
tions to political parties are tax free up to a
former members of the communist secret
certain amount. Srejbr's donation would
police in the top echelons of politics. The per-
have been liable for taxation, but when divid-
sistence of communist involvement in poli-
ed up between multiple sponsors it was not.
tics is not surprising, considering that no
The court found that although a crime had
Central European country, with the excep-
been committed, it could not be attributed to
tion of the Czech Republic in the 1990s,
anyone in particular, and Novak walked free.
excluded communists from public office.
As a result of that scandal, however, the ODS
(The new Polish government, for all its short-
split and Vaclav Klaus's liberal government
comings, is stridently anti-communist and
collapsed.54
may succeed in purging the former commu-
nists from public life.)
Government spending is not the only prob-
Thus, in Slovakia, 11 out of 16 members
lem, of course. As the following example
of Fico's government, including Fico himself,
shows, regulation remains an important
were members of the Slovak Communist
source of corruption. In the summer of 2002,
Party before communism ended in 1989.56
the newspapers reported, Lew Rywin, who pro-
12