Slovenian EY forensics team assists in settlement of major dispute

€ 260 million settlement for HSE in the TEŠ 6 matter

After many years, the multi-year dispute between Holding Slovenske elektrarne (HSE) and it's counterparties in the case of TEŠ 6 was successfully concluded. The arbitration proceedings began in 2017 and ended on 10 March 2021 with a settlement of €260 million. According to HSE, TEŠ received €131 million in direct settlement in March 2021, with a further €8 million to follow in January 2022. TEŠ will also receive €110 million in services and upgrades from the counterparty, as well as €12 million in savings and/or reimbursement of other costs.

The forensic team of EY Slovenia, headed by Janja Skamlič, in 2015, based on a public tender, began a special audit of the TEŠ 6 case under Article 318 of Companies Act. EY was authorized to carry out a special audit of the management of individual investment operations in Unit 6 of the Šoštanj Thermal Power Plant. The purpose of the prepared report was to present the actions of individuals related to managing the investment in Unit 6 of TEŠ on the basis of the collected evidence and to determine the suitability of managing the investment from the point of view of expediency and adequacy of decision-making, from the compliance point of view and economic justification. The first EY report was issued in 2016, and EY subsequently issued three supplements to its report in the following years.

During the investigation, the forensic department of EY Slovenia carried out several extensive forensic procedures, all with the aim of assisting HSE in obtaining evidence in the case of TEŠ 6, including preparation of initial calculation bases for assessment of damages in the case of TEŠ 6, reviews of a vast array of electronic documentation and its review using the forensic tool Relativity , cash flow analysis with special forensic program based on the collected documentation, and other procedures. The multitude of evidence collected, collated and analyzed by the EY team helped HSE's lawyers as a basis for preparing for the arbitration proceedings.

During the proceedings, the forensic department of EY Slovenia cooperated with the law firm Rojs, Peljhan, Prelesnik and Partners, as well as experts from HSE and TEŠ.