CRH Polish subsidiary challenges €530,000 fine

An appeal by a Polish subsidiary of CRH against a €530,000 fine for trying to interfere with a price-fixing investigation could…

An appeal by a Polish subsidiary of CRH against a €530,000 fine for trying to interfere with a price-fixing investigation could end up in that country's courts.

It emerged last month that the Polish Competition and Consumer Protection Office fined the CRH subsidiary, cement producer Grupa Ozarow, €530,000 after one of its workers attempted to tamper with evidence during a raid on the company's offices last year.

The Polish authorities were gathering evidence for an investigation into price-fixing in the country's cement industry. CRH said at the time that it intended appealing the ruling.

It is understood that Ozarow has since lodged an appeal with the president of the Competition and Consumer Protection Office. Under Polish law, the president can either allow the appeal, refuse it, or he has the option of asking the courts to adjudicate on the issue.

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It is not known at this stage what action the office intends taking.

Ozarow was not fined for any breach of competition law. The Competition and Consumer Protection Office told The Irish Times that it imposed the fine because one of the company's employees made its inspection difficult by attempting to hide the original version of a document its staff were seeking, and tried to change the electronic version.

The CRH subsidiary is one of eight companies targeted by the competition office's staff and police in a wide-ranging investigation of price-fixing and cartel activity in the Polish cement industry. EU and local competition laws ban such activities.

The offences carry heavy fines, often linked to turnover, and in some jurisdictions directors face jail if their companies are found to be involved in these practices.

News of the fine broke last month, just days after CRH's annual general meeting in Dublin. The directors, including chief executive Liam O'Mahony, knew of the fine before the meeting, but made no reference to it.

The issue was raised at the meeting by businessman Séamus Maye, whose own company, Framus, is taking a civil competition law action against CRH in the Irish courts. The then CRH chairman, Pat Molloy, said that all group companies competed within the law and operated to the highest standards.

Meanwhile, it has emerged that CRH has entered a joint venture with Spanish DIY player Jelf Brico House. The company confirmed that it had done a "small deal" in Spain and said it would reveal further details in an update on its activities early next month.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas