Another Irish company that invested significantly in Poland has complained about its experience there, as the Polish embassy in Dublin rejected any suggestion the country does not welcome foreign investors.

Irish businessman Michael Holland, who, along with a number of others, made a multimillion euro investment in a development project in Warsaw in 2006, has said he will not invest in Poland again after city authorities in Warsaw initiated moves to cancel certain rights they acquired.

The Global Partners Investment Fund bought ownership rights to 60 per cent of the Skra sports complex in central Warsaw, with a view to building a new sports arena, along with other structures, on the site. However, the city has now gone to court to deny the fund the right to continue the project, claiming it failed to maintain the site properly.

The city authorities “are conspiring to confiscate” the property and have a vested interest in doing so, as there is no provision for any compensation in law, a spokesman for Mr Holland said. “Nothing prevents the city from re-issuing good title and good planning and putting it on to the market for substantial gain.”

Mr Holland said when the fund tried to get a building permit to allow it conduct the maintenance work, the city refused to grant it. He has rejected the validity of the reasons given by the city authorities for this, and the courts in Poland will now have to settle the matter.

Horrified

He said he believed the city council did not want a foreign group developing the area. “We are horrified that this can happen in Poland, a country that is in the EU.”

However the city authorities, by way of the embassy, said Warsaw is going to the courts to cancel the contract given to the Global Partners Investment Fund because the fund’s actions were not acceptable and so as to clear the way for the type of development of the site it wants to see occur.

“The capital city of Warsaw is convinced that the situation with Global Partners Investment Fund will not harm co-operation with potential investors,” a city spokesman said. “We encourage entrepreneurs to invest in our city all the time.”

Mr Holland is the owner of the Four Star Pizza franchise, which he bought out of examinership in 2011, and the Fitzwilliam hotels in Dublin and Belfast. He also owns the Irish Welcome Tours tour operator, and the Authentic Ireland travel business.

The late accounts for Dublin-based GPI Global Partners Investments Ltd show it had advanced €2.7 million to its Polish subsidiary, at the end of 2013. The shareholders included Mr Holland, Noeleen Dickenson, the Societé Quebeciose D’escompte et de Titrisation, Finian McDonnell, the estates of John O’Meara and John Bourke ( both deceased), and others.

In 2013, the Taoiseach Enda Kenny raised the issue of serious delays in payment encountered by Irish construction firms in Poland with the country’s then premier, Donald Tusk, who is now president of the European Council.

Court action

Sisk and Siac have taken court action seeking damages from the Polish national roads authority in relation to motorway projects they were involved with which were part-funded by the EU. Companies from Austria, Germany and Spain are also making claims.

The embassy spokeswoman said the difficulties Siac and Sisk have claimed they have encountered in doing business in Poland are currently being processed in the courts. “The embassy is certain that the problem will be solved soon by an impartial verdict of the court.”

She said the embassy in Dublin provides a free service for investors and companies looking for business partners in Poland, and also helps Irish businesses seeking to buy and locate in Poland.

The Polish authorities, both central and local, have never created any illegal bias in favour of domestic business in Poland, she said, adding that there has never been any favourable treatment for foreign or domestic firms.

“Poland has always encouraged foreign entrepreneurs to invest in our country. There are no legal barriers for them, provided Polish law and the terms of contracts are respected.”

A spokesman for Sisk said it did not wish to comment. A spokesman for Siac said it “continues to pursue its contractual rights for works performed in Poland, against the Polish roads authority”.