Professional Documents
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NEWS Coalition
Trnka fights back
The government has pro-
posed new rules for prosec-
loses
utors, but faces criticism
from former general pro-
secutor Dobroslav Trnka,
another MP
who has now returned to a
senior position. Dual citizenship changes
pg 2 put on ice
BUSINESS FOCUS
pg 5
State plans to sell been clarified, and called on fellow coali-
tion parties SaS and the Christian Demo-
cratic Movement (KDH) to deal with their
errant MPs. Matovič, who leads the four-
member Ordinary People faction within
Investment matures
In the last decade private
equity groups in Slovakia
have started to become
heating plants SaS, and Radoslav Procházka, a KDH
deputy, supported a draft amendment pro-
posed by the opposition Smer party. Bugár
also called on Prime Minister Iveta
Radičová to act, and convene a session of
more sector-oriented and GOLDEN parachutes for CEOs, fishy tial blocks and even city districts via the Coalition Council, saying “this is a
extend their activities in- sales of excess emission quotas at a piped distribution networks, have problem for the whole coalition”.
to neighbouring coun-
BY BEATA BALOGOVÁ SaS leader Richard Sulík subsequently
hefty discount on the market price Spectator staff reported profits these have largely
tries. and failed political nominations to been down to one-off sales of excess announced Matovič was being expelled
pg 6 top managerial posts have brought emissions quotas – and that some of from the SaS parliamentary caucus, thus
the subject of state-owned heating the companies have remained loss- making him the second independent MP,
companies under the political spot- The cabinet approved the sale on making even after taking such in- following the recent departure of Andrej
Looking to Europe light. Now the government has de- February 9. Yet, as recently as Janu- come into account. Ďurkovský from the KDH caucus.
Investment analysts talk to cided to put six heat producers up ary 20, Prime Minister Iveta Privatisation is in the public in- “If Igor Matovič doesn’t have a problem
The Slovak Spectator about for sale based on an analysis by the Radičová said that only companies terest, Mikloš said, adding that the voting with him [Fico], that’s his decision.
what makes private equity country’s privatisation agency that have been consistently loss- experience of keeping heating com- We have a problem voting with him [Fico],
firms in Slovakia unique. which says that the state would, in making would be considered for sale. panies in state hands has shown that and we also have a problem with a person
pg 7 the long run, be better off selling at Finance Minister Ivan Mikloš com- they do not develop well and have who doesn’t have such problem being
least part of its stake in these com- mented that even if some of these slipped further into debt. among us,” Sulík said.
panies rather than trying to man- companies, which produce hot wa-
CULTURE age them. ter and steam to heat whole residen- See SALE pg 9 See OUT pg 3
EDITORIAL
“Ordinary People” faction past. When Time magazine age they cause rather than be-
OF THE WEEK
Special to the Spectator members, without whom the dug into the history of golden ing given a parachute.
coalition has no majority. And parachutes it discovered price In the light of all these
IT’S NOT usual to hear politi- the countless unknowns the tags exceeding $35 million, developments Prime Minis-
cians talk about pooping. But recent development creates: plus deals guaranteeing lav- ter Iveta Radičová has said
then again, these are excep- Will Matovič vote for coalition ish consultancy fees for the that the era of political nom-
tional times. Mainly thanks to legislation? How about votes manager being shoved out of inations will end and that
renegade MP Igor Matovič. of confidence? How long will the corporate jet. Doubtless, managers will in future be
First, he outraged coali- it take before one of the other there have been some dia- picked via a competitive pro-
tion colleagues with an inter- coalition parties gets fed up mond parachutes worth mul- cess – and that those chosen
view for the Sme.sk website in with not being able to govern tiples of these sums. will not get offered a golden
which he suggested that on and starts talking to Smer? Slovakia’s sky has its para- parachute. But it remains to
average, each MP has at least Are there enough votes to chutes too and even if the be seen if this will become
10 nominees in state firms support the public vote on the price tag is only a fraction of reality, and if so if it will be
and institutions, which buys general prosecutor? If the these famous ones, they are applied to the present gov-
their loyalty and glues the co- vote is secret, can Dobroslav still enough to outrage the ernment.
alition together. He later cor- Trnka win? If Trnka wins, will public and even politicians. Those who have been
rected his statements. But And then finally came Prime Minister Radičová A pair of one-time man- running Slovakia for the past
only to say that the average is Matovič’s vote on dual cit- really step down? And what agers at the Košice-based two decades have not con-
more likely close to 20. izenship, and his subsequent happens then? heating plant TEKO recently ceded some important defin-
In the same interview, he expulsion from the Freedom It does not seem that received severance payments itions: that party interest
suggested that one of the co- and Solidarity (SaS) parlia- Matovič has even a vague of €100,000 and €90,000 re- BY BEATA BALOGOVÁ does not equal the public in-
alition leaders voted for gen- mentary caucus, for which he idea of where all this is head- spectively, despite holding Spectator staff terest or the interest of the
eral prosecutor candidate had a simple explanation – SaS ing. What he does realise is their posts at the company for state. Or, indeed, that the in-
Dobroslav Trnka, in breach of boss Richard Sulík was that blocking the coalition only a few weeks or months. terests of the state do not al-
coalition agreements. He gave frightened and pooped will do for him what pooping What makes their situation This is the extent of the ways coincide with the in-
no names, but his description (pokakal sa). does for children – win atten- more piquant is that TEKO is a managerial skills of some terests of the public.
fit only Most-Híd chairman What really is frightening tion. And that seems to be his state-owned company and political nominees. Yet, in The recent statement by
Béla Bugár. is the fact that the fate of this top priority. the managers in question this Slovak fairytale, they MP Igor Matovič that each
were nominated to their jobs were even paid when asked to Slovak deputy had installed
by political parties. leave. Businesses have in the as many as 10 people to vari-
Other heat-producing past produced their own eth- ous positions was probably
companies have been making ical justifications for golden intended to impress the me-
headlines in Slovakia not only parachutes, but in the cases dia and get attention, but
because of outrageous golden of the Slovak heating com- nevertheless he has a point.
parachutes but also due to the panies none of these apply. It is disappointing that
mess that some political For example, advocates of politicians after each elec-
nominees have left behind, as golden parachutes claim that tion cling to political nom-
well as some rather unfortu- offering them makes it easier inations to state-owned
nate picks by parties which to head-hunt someone for a businesses. They still some-
have helped turned the prac- position, and then provides how pretend to believe that
tice of political nominations more security and the pro- being someone’s cousin, or
into a complete farce. spect of keeping the same getting a job simply because
In one example, the managers from yielding to of- of loyalty, or from being
Žilinská Teplárenská heating fers from other companies. close to a party means that a
company, while led by a Slov- Yet if the Slovak version of nominee will be just as good
ak National Party (SNS) nom- the golden parachute opens a manager as a professional
inee during the government after just a couple of weeks on with years of experience.
of Robert Fico, in 2008 sold the job, it almost invites polit- Why do party headquarters
60,000 tonnes of excess emis- ical nominees – who in fact think they are better suited
sions quotas at half the mar- know that their job prospects to pick managers than inde-
ket price. The Trnava heating last only as long as their polit- pendent bodies? And why do
plant, under its previous ical sponsors remain in power ‘independent bodies’ so of-
management did even better – not so much to strive for ten pick nominees along
What's that smell? Igor Matovič says he does not like political parties. Photo: Sme - Vladimír Šimíček between 2008 and 2009, success as to use the limited party lines?
INVESTMENT GROUPS
BUSINESS FOCUS Next issue:
Looking to Europe
Geothermal energy eyed
INNOVATION
Arca Capital
active in Slovakia
The crisis delivered a ‘tough lecture’ health-care, aerospace, machine engineering, private
banking, telecommunications, facility management and
entertainment industries. Its investments in the
Real estate was ecutive director of J&T Real Estate told The comparable in size and extent in Ukraine banking sector include Privatbanka and in the
Slovak Spectator. “This shows that even but in the Ukrainian context these are health-care sector it owns health insurer Dôvera, the
a mixed blessing for the crisis did not distract us from our trust smaller or mid-sized projects. But these network of Dr. Max pharmacies and ProCare medical
investment groups in real estate projects.” focus on the residential sector and centres. Penta is active in more than 10 European
Pelikán conceded that J&T Real Estate logistics.” countries, with offices in Prague, Bratislava, Warsaw,
felt some blows from the crisis but em- According to Velič, the crisis has Limassol (Cyprus) and Amsterdam.
phasised that this led to a change in its ap- clearly defined certain limits in particular www.pentainvestments.com
BY JANA LIPTáKOVÁ proach to projects, leading the firm to pay real estate investment sectors and
Spectator staff more attention to the needs and require- brought a broader variety of projects.
ments of its clients. “The crisis showed that a well-chosen Slavia Capital
Among the most well-known of J&T’s concept in a good locality is prospective
INVESTMENT and private equity groups real estate projects is the River Park com- during any phase of the economic cycle,” Slavia Capital dates back to 1995 and its priority areas of
eyed the boom in building and property plex on the north bank of the Danube said Velič, adding that projects which did investment are the energy, food, primary agriculture,
sales in the early years of this decade and River in Bratislava, with its apartments, not take into consideration broader rela- machine engineering, and chemical industries and
many entered what they thought was an office space, hotel, restaurants, and other tionships had to be changed and exagger- receivables and debt-collection. It has investments
unfailingly lucrative market by building attractions, including a seasonal outdoor ated expectations had to be corrected. But in 11 European countries but has a focus on central and
office complexes, logistics parks, residen- ice skating rink. Velič sees this as natural in an environ- eastern Europe.
tial properties and other kinds of commer- Real estate projects represent about 55 ment where demand is the driving force in www.slaviacapital.com
cial facilities. The economic and financial percent of Arca Capital’s investments. the market.
crisis over the past several years was a “Our group has historically not carried Penta Group began investing in the
very cold shower for those who had active out overly ambitious projects; we rather real estate sector only in 2005. Currently, Slovintegra Group
real estate projects and Slovakia’s invest- went into smaller projects or projects with real estate developments represent less
ment groups did not totally escape from a possibility of gradual realisation of the than 20 percent of Penta’s invested assets, Slovintegra Group was established in 1995 and has
the chilly water. investment, such as in phases,” Rastislav said Martin Danko, Penta’s PR manager, investments in the health-care, energy and
“Just during the deepest crisis period Velič, the financial and project manager of adding that the investment group has 11 manufacturing industries.
in the fall of 2008, J&T Real Estate spun off Arca Capital, told The Slovak Spectator. ongoing projects in Slovakia and the www.slovintegra.sk
from the J&T Group and under the owner- “Our biggest investment in either Slov- Czech Republic.
ship of Peter Korbačka created an inde- akia or the Czech Republic is the Liptovská Source: Investment groups, Book of Lists 2011
pendent holding,” Pavel Pelikán, the ex- Osada tourist resort. We have projects See PROPERTY pg 8 Compiled by Spectator staff
BUSINESS FOCUS February 14 – 20, 2011 7
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8 February 14 – 20, 2011 BUSINESS FOCUS
Anna
Urbásek, and others) who or- 152; www.hvm.lubosbena.sk.
Erwin
ganised an underground ex- Prešov
hibition to compare their Central SLOVAKIA l MUSEUM: Kapitoly z dejín
Netrebko Schrott
works at least among them- odievania / Chapters from the
selves during communism. Banská Bystrica History of Clothing; Portréty
Open: Tue-Sat 14:00-18:00 l FLAMENCO LIVE: Los panovníkov a šľachty
until February 26; Galéria C. Remedios Trio – The Zelené Rakúsko-uhorskej monarchie
Majerníka, Ventúrska 9. Ad- tóny / Green Tones cycle of in- / Portraits of Emperors and
mission: free. Tel: 02/ timate concerts begins with a Nobles of the Austro-Hun-
www.snd.sk
N A M E D A Y F E B R U A R Y 2 0 1 1
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Weather updates and forecasts from across Slovakia Valentín Pravoslav Ida Miloslava Jaromír Vlasta Lívia
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A Slovak’s name day (meniny) is as important as his or her birthday. It is traditional to present friends or co-workers with a small gift,
In cooperation with the Slovak Hydrometeorological Institute such as chocolates or flowers, and to wish them Všetko najlepšie k meninám (Happy name day)
CULTURE February 14 – 20, 2011 11
Bust of Dubček unveiled in Rome Slovak bestseller now
Italy helped
Speaker Hrušovský, told the
TASR newswire after the ce-
has an English version
bring the Slovak remony. KNIHA o cintoríne (Book originally published in 2000 in
He added that this is a suc- About a Cemetery), a novella Slovak and since reprinted
politician to cess in Slovak diplomacy and written by Daniela three times, was translated in-
prominence means further development of Kapitáňová but originally to eight languages, including
contacts between Italy and published under the pseud- Arabic and Belarusian.
Slovakia as well as Rome and onym Samko Tále, who is the Rajendra A. Chitnis, who
Bratislava. story’s main character, has teaches Russian, Czech and
BY JANA LIPTÁKOVÁ It was also during his been translated into English Slovak languages and liter-
Spectator staff travel to Rome and Bologna by Julia Sherwood with the ature from the 19th century
that the deep relationship title Samko Tále’s Cemetery to the present at Bristol Uni-
between Dubček and Italian Book. Sherwood began trans- versity, wrote in a review
A CITY square in Rome has a President Napolitano was lating the book into English published in The Times’ Lit-
new addition: a bust of reform- born, Vallo added. immediately after she had erary Supplement entitled
ist communist leader Alexan- Largo Bratislava in Rome now features a bust of Alexander It was Napolitano who finished reading the original Hell in a Handcart: “Samko
der Dubček that is within sight Dubček. Photo: Courtesy of the Slovak Embassy in Rome successfully pressured the version, without even having Tále is a physically and men-
of the building housing the Italian Communist Party to a contract. After the transla- tally stunted, forty-three-
Italian Foreign Affairs Min- teemed political figure in Italy. Vallo further quoted a condemn the invasion, led by tion was completed, she year-old resident of the Slov-
istry. The Dubček bust was un- Before the Velvet Revolution, statement made by Dubček in the Soviet Union, of Warsaw offered it to a publishing ak border town of Komárno,
veiled in a square now called which started in November a book by Luciano Antonetti Pact troops into Czechoslov- house specialising in eastern who supplements his disabil-
Largo Bratislava – Capitale 1989, the University of Bologna to emphasise why placing his akia in August 1968, the ČTK Europe but was rejected. ity pension by collecting
della Repubblica Slovacca – on had granted him an honorary monument in Rome is so jus- newswire wrote. However, Garnett Press ac- cardboard, and is writing his
January 20 in the presence of doctoral degree for his work tified and how the degree The invasion swept away cepted the manuscript and ‘book about a cemetery’ be-
top-ranking Italian guests, advocating human rights. from the Italian university the leadership of the following its initial success, cause an alcoholic at the sta-
many of whom knew Dubček “It was Italy which lifted helped Dubček to return to in- Czechoslovak Communist it seems that a second book by tion pub predicted it. His ed-
personally. the taboo laying on Dubček ternational political promin- Party (KSČ) under Dubček. Kapitáňová, Nech to zostane dying ‘stream-of-conscious-
Italian President Giorgio and keeping him hidden, even ence. When answering a Dubček (1921 – 1992) was one of v rodine (Let It Stay in the ness’ takes in the period from
Napolitano, Italian Foreign non-existent and isolated in question by a French journal- main leaders of the reformist Family), could also be pub- his grand- mother’s wartime
Minister Franco Frattini and Bratislava, for almost 20 ist about his journey from one wing of the KSČ and the prin- lished in English. acquisition of Jewish property
other leading representatives years,” Stanislav Vallo, the capital, Bratislava, to the fed- cipal organiser of the Prague The translator, who has (‘why would Jews need things
of Italian political, economic Slovak Ambassador to Italy, eral capital of Prague where Spring movement. After the re- Slovak origins and had first- like a piano in a concentration
and social life were present. said in a speech at the cere- he became speaker of federal form process was suppressed, hand experience of the com- camp, right?’), the Commun-
The Slovak delegation was led mony explaining the close re- parliament after 1989, Dubček Dubček resigned from his top munist regime, told the Sme ist period and post-independ-
by Pavol Hrušovský, Slovakia’s lationship between Dubček, said “the way from Bratislava position in the party and was daily she was enchanted and ence Slovakia. Observing
deputy speaker of parliament, Italy and Slovakia. “In Novem- to Prague was uncomfortable later ousted as a member. moved by Kniha o cintoríne people on his rounds, Samko
representatives of Bratislava ber 1988, the University of Bo- and, in particular, long from Dubček returned to polit- as it truly evoked the grim notes behaviour that he con-
City Council and Dubček’s logna granted Alexander both the view of time as well ical life after the fall of the to- atmosphere of 1970s siders to be against ‘the law’
sons, Pavol and Peter. The Dubček an honorary doctoral as geography because I trav- talitarian regime, becoming Czechoslovakia in which con- and reports it to the ‘High-
bronze bust is a work by Slovak degree and the Czechoslovak elled first via Rome and Italy”. the speaker of the new federal formism was encouraged and Ups’, as he has done since his
sculptor Igor Mosný mounted state representatives were “For us it was a great ges- parliament. He died in free thinking and free living schooldays under
on a travertine stand. forced to allow him to travel to ture and honour,” Tomáš November 1992 from injuries were suppressed. Communism.”
Dubček is a highly es- Italy to receive the degree.” Zálešák, an adviser to Deputy suffered in a car crash. Kapitáňová’s first work, Compiled by Spectator staff
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