A model conflict of interest

24.09.2015 - EB

Czechs are so used to being stolen from that another Kč 1.4bn can't get them riled up. This is how much they'll lose if the Arbitration Court finds that Škoda Transportation should be paid for delivering locomotives to Czech Railways late. If paying someone for being late sounds ridiculous to you, you will also like the latest argument from Škoda. Its nominee to the three-member arbitration panel, Milan Polák, works for a law firm, Weinhold Legal, that is now officially integrated into EY, which prepared valuations for Škoda for use in the arbitration. Škoda's lawyer, Radek Pokorný, claims that there is no conflict, because the affiliation with EY has been known for years. The law on arbitration proceedings is precise: An arbiter with a conflict must disclose it and recuse himself. For Czech Railways to lose this case would actually be a big step toward reforming the Arbitration Court, because everyone would finally understand how rigged it is.

Glossary of difficult words

to rile someone (up) - to make someone annoyed or irritated;

affiliation - association with, connection with;

to recuse oneself - (of a judge) to excuse oneself from a case because of a possible conflict of interest or lack of impartiality;

rigged - manipulated; managed or conducted fraudulently so as to produce a result or condition that is advantageous to a particular person.



Switch to desktop version

Subscribe

Unsubscribe


FS Final Word
close