Banking on Integrity: Should Slovakia’s Central Bank Governor Stay in Office?

At the end of May, the Special Criminal Court in Slovakia found Peter Kažimír, the current governor of the Slovak National Bank (NBS), guilty of bribery committed during his tenure as Minister of Finance. Kažimír allegedly bribed František Imrecze, then head of the Financial Administration, to expedite tax proceedings concerning VAT refunds for a group of companies. Kažimír was fined 200,000 EUR. The court ruled that he would face a one-year prison sentence should he fail to pay the fine, but the conviction is not yet final.[1]

This decision marks a significant moment in Slovakia’s ongoing struggle with corruption and its institutional implications. Based on Transparency International data, Slovakia is at the tail of the perception of corruption, and the situation has deteriorated since the government of PM Fico returned to power. [2] 

Defence Minister’s Missing Asset Declaration

On the 13th of March, a Slovak newspaper published an investigative article mapping the holiday homes of politicians, influential figures, and oligarchs in a remote Croatian seaside village. It was revealed that the Defence Minister in Fico’s Cabinet and his right-hand man, Rober Kaliňák, had a villa in the destination. Asked about a specific piece of property, he openly admitted to the journalists: 

More than six years ago, my wife purchased the property in question from an elderly Croatian family for €296,000. In fact, it is not a villa, but two apartments. The property is more than 50 years old, so it has undergone renovation. [1]

The point of the article was not necessarily to question the ownership of Kaliňáks’ holiday home. It is known that Kaliňák is a relatively wealthy politician and business owner, but rather the curious fact that the property neighbours other prominent lawyers and lobbyists. On the same day the story broke, however, it became clear that this was a bigger issue than all of the initially involved expected. Within a few hours of the article being published early in the morning, two opposition parties held a press conference, where opposition MP Veronika Remišová, who is the Chairwoman of the Parliamentary Committee on the Incompatibility of Functions, revealed that the Defence Minister failed to declare the seaside villa owned by his wife in Croatia.[2] Within a day, the controversy escalated into a full-blown scandal.