Karel Komarek, Czech billionaire whose firm Allwyn was licensed to run the UK’s Nationwide Lottery, has confronted quite a few challenges and criticism from each the federal government and the general public.
Along with technological and monetary failures undermining the corporate’s credibility, investigative journalism has drawn consideration to its long-standing ties to Russian companies, together with a mysterious deal for the Samara oil terminal, elevating doubts in regards to the transparency of its enterprise.
Technological issues and unfulfilled monetary guarantees
Allwyn has promised not solely to improve the Nationwide Lottery’s technological infrastructure, but additionally to extend the proceeds for good causes, reaching an annual revenue of £10bn. Nonetheless, the primary 12 months of administration confirmed that these plans can solely stay on paper. A terminal improve deliberate for greater than 40,000 UK shops has been delayed by half a 12 months, with prize payout delays, scratch card top-up failures and systemic IT issues sparking criticism from gamers and customers.
Russian Samara oil terminal and unclear agreements
The important thing perception into Komarek’s previous relations with Russian companies was the investigation by Ukrainian journalists from the Kommersant Ukrainskyi in regards to the sale of his Samara oil terminal, positioned on the Volga, not removed from Syzran. In keeping with the journalists, though Komarek’s firm formally introduced the sale of the terminal as early as 2022, Russian registers point out the presence of its managers within the firm till the top of 2023. A fancy scheme was applied to switch the terminal to the Czech firm Fratron Make investments s.r.o., headed by Komarek’s long-time supervisor Pavel Schwartz. Constructions near the Czech tycoon may theoretically management the terminal via Fratron for at the very least a 12 months after the introduced sale.
Furthermore, there isn’t any convincing proof that Komarek doesn’t management the Russian asset till now. In spite of everything, the brand new proprietor of the terminal, Andrii Viktorovych Hordieiev, to whom Schwartz bought (or transferred) the rights to the corporate, is a whole no-name and, in all probability, is a entrance one that can signify the pursuits of each Russians and Komarek.
This, in flip, raises doubts about sincerity of Komarek’s statements about breaking relations with the Russians normally and with Gazprom specifically.
The ‘Gazprom’ previous of the proprietor of the Nationwide Lottery of Nice Britain
We are going to remind that for about 20 years Komarek was deeply built-in in enterprise relations with the Kremlin. Along with Gazprom, he constructed a gasoline storage facility within the Czech Republic, which is necessary for Russians’ gasoline growth plans and acquired company rights to the terminal talked about above. The Safety Service of Ukraine accused Komarek of the truth that this terminal equipped oil merchandise to Ukrainian territories captured by Russians, thereby sponsoring terrorism.
As for Moravia Gasoline Storage (MGS), which operated a gasoline storage facility within the Czech Republic, Russian affect was dominant right here. The corporate’s Board of Administrators included ex-Deputy Chairman of Gazprom Oleksandr Miedviediev and different high managers recognized by Russian opposition media as former and present staff of Russian particular companies.
After the Russian invasion of Ukraine, the refusal to cooperate with Russians took for much longer than the Komarek firm declared. Solely in June 2024 did the corporate full the buyout of the Russian companion’s stake, seemingly severing the final ties with the Russian enterprise. However the truth of re-election of Ditlif Weidemann, the previous head of Gazprom’s subsidiary firm in Germany, Gazprom Germania GmbH, to the administration of MGS in March 2024 was fairly indicative from the perspective of preserving Russians’ affect there. The desired supervisor represented the Russian, not the Czech, aspect in MGS.
Dissatisfaction of the UK authorities and public outcry
The story of the frank prolongation of Komarek’s break with Gazprom and the very fact of the highly effective lending of Komarek’s tasks by Russian state banks for at the very least 640 million euros prompted specific dissatisfaction amongst British politicians, together with Sir Iain Duncan Smith, who pointed to the necessity for an intensive evaluation of the selection of Allwyn because the operator of the Nationwide Lottery. On the similar time, some members of Parliament harassed that such a choice dangers undermining the belief of the Nationwide Lottery as an establishment with solely charitable targets.
The tender course of additionally sparked debate amongst British politicians as a result of revelation of Komarek’s ties to the Kremlin, which may have influenced the choice. Camelot, which had beforehand held the license since 1994, initially took authorized motion however later withdrew it when Allwyn purchased the corporate for £120m.
Difficulties with offering monetary forecasts
After Allwyn took over, its monetary efficiency fell in need of said projections. Delays within the launch of recent video games and the dearth of updates in pricing insurance policies (for instance, the value of a lottery ticket was not decreased from £2 to £1) compounded the monetary difficulties. The British Playing Fee, which authorized the license, explains that such adjustments are regular in market circumstances, however politicians and consultants doubt the realism of Allwyn’s guarantees to extend funding for good causes.
Allwyn lobbying and affect within the UK
Confronted with a wave of criticism, Allwyn targeted on strengthening its picture by sponsoring main occasions. For instance, the corporate supported The Spectator’s annual occasion and a number of other occasions on the Labor Celebration conference to debate the way forward for artistic industries. Such efforts to strengthen ties with the British public are geared toward restoring belief within the firm and overcoming a detrimental picture as a result of hyperlinks with Russian enterprise.
Nonetheless, regardless of Allwyn’s finest lobbying efforts, key questions in regards to the firm’s transparency and compliance with UK sanctions coverage are nonetheless open. The impression of the issue of secret ties with Gazprom and the Samara oil terminal, which may proceed to carry revenue to firms linked to Russian enterprise, is inflicting a stir among the many British public. Karel Komarek’s connections with Russian companions stay the topic of discussions within the media, as a result of the main points of the terminal sale are nonetheless incomplete and lift doubts in regards to the sincerity of statements a few full break with Russia.
The case, amid all of the difficulties Allwyn is dealing with within the UK market, has drawn consideration to the tough query of whether or not an organization with a murky previous and delays in monetary forecasts can guarantee clear administration of one of many UK’s most necessary charities. What stays in query shouldn’t be solely the competence of Allwyn, but additionally credibility of the Nationwide Lottery as a dependable supply of funding for good causes, which is central to the social welfare of the nation.
