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The Swedish-Lithuanian joint venture Pentacom, established in Kaunas almost 30 years ago, exists today only in theory. 2016 The courts that started ended this year, but the situation remained ambiguous.
Hidden Actions
The nuances of Pentacom’s activities have been examined in both civil and criminal proceedings. The initiator of these processes was Jarl Assar Branting, a Swedish citizen, one of the shareholders of Pentacom. He was not just an entrepreneur. At the beginning of restored independence, friendship was established between the cities of Kaunas and Växjö (Sweden). The Swedish delegations, which included not only politicians but also business and cultural representatives, were accompanied to Kaunas by JABrantingas, whom everyone loved and respected at the time.
At that time, it was possible to transport and sell everything to Lithuania, because everything was missing. 1992 JA Branting founded Pentacom with Ernest Rimvydas Natkevičius and several other partners. After about 25 years with the company, Jranting discovered that Pentacom was on the brink of bankruptcy. In addition, the company-owned building on Jonavos Street was sold to another company. ERNatkevičius, who owned the main stake in Pentacom, was the focus of unenviable changes.
The writer Silvija Laurenčikaitė represented the interests of Jantranting in Lithuania. The woman made no secret that she was a close friend of Jranting and the mother of the two children. “Kauno diena” in 2016. described the confusing history of Pentacom. At the time, S. Laurenčikaitė was only considering applying to law enforcement for possible illegal actions of Pentacom’s director and shareholder, ERNatkevičius, of which his business partner was unaware.
JBrantingas was surprised that ERNatkevičius transferred more than 50 percent without his knowledge. shares for one euro to Paul Juškevičius, and the building owned by Pentacom was sold to the new company by the Asset Management Bureau, of which he was director.
Pleaded guilty
Chamber of Judges of the Court of Appeals 2021 May 27 issued a verdict recognizing ERNatkevičius for three crimes. “The criminal proceedings against the famous Swedish-Lithuanian company Pentacom, which lasted almost six years, finally came to an end. The court confirmed that the former director and shareholder of Pentacom had indeed betrayed his Swedish business colleague JABranting, ”said S. Laurenčikaitė sharing the court news.
The dispute over the return to the company of a building that previously belonged to Pentacom does not end. (Photo by Elijus Kniežuskas)
2016 The pre-trial investigation was launched after receiving a complaint from S. Laurenčikaitė, authorized by JABranting, regarding the possible illegal actions of ERNatkevičius in the sale of the Pentacom building on Jonavos street.
It is true that the pre-trial investigation could not be started immediately. The refusal of the Kaunas investigators and prosecutors to initiate a pre-trial investigation had to be appealed to the Attorney General’s Office. Only after recourse to that authority was Mr. Branting recognized as a victim and civil plaintiff.
The JABranting representative also complained to the Attorney General about the work of the Kaunas prosecutors until a decision was made not to initiate a pre-trial investigation. The Swedish representative was caught in a possible delay in the investigation. Finally, in 2018, the investigation was transferred to the Panevėžys Prosecutor’s Office. 2019 In spring 2006, the preliminary investigation was completed and handed over to the Kaunas Regional Court.
2021 In February, the court handed down a verdict in which ERNatkevičius was found guilty under four articles of the Penal Code. The Lithuanian Court of Appeal, which examined the convicted man’s complaint, slightly mitigated ERNatkevičius’s sentence. He was found guilty of embezzlement, fraudulent accounting, forgery and a total fine of € 250 million, or € 9,415, was imposed.
“Perhaps this story is a lesson for other entrepreneurs. “The history of Pentacom has shown that business should be based not only on Lithuanian laws, but also on common human values, the essence of which is honesty, trust and mutual respect, I mean the shareholders of the company,” he said. S. Laurenčikaitė, Representative of JABranting.
For us, it is more moral satisfaction. Investigators concluded, and the courts admitted, that a crime had been committed. Difficult, very difficult, but we know the truth.
Rescue strategy
Now ERNatkevičius refused to speak on the subject of Kauno Diena’s Pentacom company. Describing the history of the company in 2016, ERNatkevičius called the sale of Pentacom shares and the construction to Kauno Diena almost a rescue plan for the company.
“2009 The economic crisis affected Pentacom as an installer of engineering systems. The premises were committed to the bank, some partners did not fulfill their obligations and terminated their contracts,” explained ERNatkevičius at the time.
The former Swedish partner recalled that during the crisis everyone wanted to sell more and did not try to buy. The Pentacom building on Jonavos Street was valued at more than 2 million. LTL. According to ERNatkevičius, he founded the Asset Management Bureau company, took a loan from the bank and bought the Pentacom building in compromise with the bank.
In this way, Pentacom reached an agreement with the banks and other creditors. “As a shareholder, I did not have to consult with other shareholders whether to sell my shares or not,” defended ERNatkevičius. It stated that JABranting was aware of all decisions regarding Pentacom.
According to ERNatkevičius, the Lithuanian Honorary Consul in Vekšys participated in all shareholders meetings, all documents contain their signatures, therefore everything is legal and known. ERNatkevičius also claimed that he, as a director of Pentacom, made all decisions only with the blessing of the shareholders. JABrantingas could not ignore the sale of the building on Jonavos Street.
ERNatkevičius refuted the assumption that a Swedish citizen may not have understood all the nuances listed in the documents with the question: “25 years have you understood, and this year you have already taken and no longer understood?”
Illegal activities
However, the courts evaluated Pentacom’s rescue strategy somewhat differently. When interpreting the Pentacom matters in the Kaunas District Court in civil procedure, the decisions of the Pentacom shareholders’ meeting to render invalid the agreements to buy and sell shares of P. Juškevičius and Pentacom have been declared invalid.
The deal was described as ERNatkevičius’s desire to avoid his responsibilities due to Pentacom’s difficult situation and financial responsibility. The sale of Pentacom shares for 1 euro, the transfer of tangible assets, the transfer of material waste, cars without any financial transaction and the promise to help P. Juškevičius in the restructuring processes of Pentacom have demonstrated the true objective of ERNatkevičius : getting rid of Pentacom collides with responsibility and avoids the obligations derived from it.
Even during the hearing of the case in the Court of Appeal, the testimony of P. Juškevičius in the Kaunas District Court is mentioned. He bluntly admitted that he understood that he would become a fictitious CEO of Pentacom and that his goal was to make a profit. However, after selling the cars owned by Petacom, P. Juškevičius was not happy for a long time. These company losses had to be compensated.
The court also criticized ERNatkevičius’s appeal to the court regarding the restructuring of Pentacom. Apparently, the company’s restructuring request was only for the sake of sight, because after the court blessed the restructuring case, ERNatkevičius sold his shares, as mentioned, for 1 euro and a building on Jonavos street .
It was also established that ERNatkevičius did not even plan to transfer the Pentacom documents to the new shareholder and director P.Juškevičius. For his part, the latter did not make much effort to take care of the documents, and about 1.4 thousand. He knew nothing and did not receive it.
ERNatkevičius was fined 700 euros for failing to deliver the Pentacom documents to P. Juškevičius.
Photo by Elijus Kniežuskas
Moral satisfaction
ERNatkevičius did not agree with the criminal liability imposed on him. The husband’s lawyer reminded the appeals court that the material values and damages had been settled in civil proceedings in the Kaunas District Court.
It was emphasized that ERNatkevičius compensated Pentacom. His transferred to the company more than 91 thousand. it can be considered voluntary compensation and can be considered an extenuating circumstance.
However, the Court of Appeal did not accept such voluntary damages. This was allegedly done only after the intervention of the forces of order and therefore cannot be considered as voluntary damages.
By the way, the sale of Pentacom shares for one euro does not mean that the company had no assets. At the time of the Pentacom sale, the company’s assets were valued at more than 323 thousand. euros. The court recognized that the liability of the creditors exceeded the value of the property, but also emphasized that it would have been sufficient to settle at least in part with the creditors.
According to the court, the illegal actions of Pentacom CEO ERNatkevičius caused damage not only to the company, but also to creditors. According to the Criminal Code, the Lithuanian Court of Appeal, like the Kaunas Regional Court, considered them a loss of property.
“It just came to our attention then. Investigators concluded, and the courts admitted, that a crime had been committed. It is difficult, very difficult, but we know the truth,” Diena S. Laurenčikaitė, representative of JABranting, told Kauno.
The situation is twofold
However, even after six years of investigations and trials, Pentacom’s situation remains ambiguous. As the sale of the company’s shares was declared illegal, the main block of shares returned to ERNatkevičius.
According to the 2005 Minutes of the General Shareholders’ Meeting, Jrrantingas controlled 36.34%. Pentacom and ERNatkevičius shares – 50.63 percent.
“That company is completely empty and does not carry out any activity or project. ERNatkevičius appointed his man as director. At the shareholders’ meeting, I voted against because I do not know that person, but everything remained like that ”, explained S. Laurenčikaitė the situation at Pentacom.
According to the woman, the episode regarding the sale of the Pentacom building to ERNatkevičius’ company, The Asset Management Office, was removed from the case. JABranting’s civil plaintiff and victim status was also revoked. Therefore, the Swede had to initiate another case concerning the sale of the building and request restitution to return the building to Pentacom.
“ERNatkevičius transferred all the activities carried out by Pentacom to his other companies. His company ICS Baltic has already been liquidated in bankruptcy. But there are also” Indoor Climate Solutions “,” Integrated Centralized Systems “and” Property Management Office “, – taught S. Laurenčikaitė.
The Swedish representative discussed the prospects for Pentacom’s confusing situation. According to S. Laurenčikaitė, if the court returned the building sold to Pentacom, then it could be sold and the proceeds distributed to shareholders. ERNatkevičius could also buy JABranting shares at market value.
“To the extent possible, to deceive the man who helped him, he helped him and his family financially,” said S. Laurenčikaitė with rhetorical questions. “There are no rules, no laws, only benefits for him.”
The woman did not hide the fact that neither she nor Jantrantingas saw a future in Pentacom’s joint business, even if she did, together with ERNatkevičius.
The Kaunas Regional Court rejected Jranting’s claim against the building previously owned by Pentacom, but it is planned to appeal this decision to the Lithuanian Court of Appeal.
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