1. Power of the Services – the Map of Research Problems

In the eighties two structures composed the military services of the People's Republic of Poland. These were: the 2nd Directorate of the General Staff of the Polish People's Army (Zarząd II Sztabu Generalnego Ludowego Wojska Polskiego, established at least in this form in 1951 foreign intelligence) and the Military Internal Services (Wojskowe Służby Wewnętrzne) established from the Military Information (Informacja Wojskowa), acting simultaneously as C.I. as well as ‘gendarmerie’ (military police), but in reality being merely a kind of military political police). In 1990 the gendarmerie was excluded from the WSW but the rest was included into the 2nd Directorate of the General Staff. Newly established in the autumn of 1991, the structure was named the Military Intelligence Services [in Polish: Wojskowe Służby Informacyjne, thus the WSI]. In 1991 WSI as a separate 'Inspectorate' (Polish: ‘Inspektorat’) was put under the command of the Minister of National Defense. In 1994 WSI returned under the subordination of the General Staff finally under the Ministry once again. In 2006 the Parliament’s [the Sejm, Poland’s Lower Chamber] Act dissolved the WSI and in its place established two separated services: the Military Counter Intelligence Service - MCIS and the Military Intelligence Service - MIS (SKW and SWW [in Polish: Służba Kontrwywiadu Wojskowego and Służba Wywiadu Wojskowego]). They are both the State's central administration organs.
Organizational changes made in the end of eighties and in the beginning of nineties did not have a crucial impact. [Military] Service(s) have played a function of political apparatus continuously. The present work of the Verification Commission helped to uncover the picture of the real structure of the military services: amongst almost 10 thousand collaborators of the military services acting inside the country as well as abroad in the year 1990, at least 2500 consisted of people being placed in central administrative and economic institutions of the country. Just the enumeration of this institution and then the people acting in their structures as WSI collaborators presented the real scope and size of the problem, facing Poland after re-gaining its independence after 1989. This problem is illustrated below presenting a list encompassing of as many as 2457 WSI collaborators being placed in WSI 'assets' in civil institutions of the [so-called] People's Republic of Poland.

Central State Offices (Urzędy centralne):
• Council of Ministers Office - 6
• Sejm's Chancellery - 1
• MFA - 108
• State Institute for International Relations [connected or in some years part of MFA] - 7
• Foreign Commerce Ministry (Ministerstwo Handlu Zagranicznego) - 32
• Ministry of Internal Commerce (Ministerstwo Handlu Wewnętrznego) - 1
• Labor Ministry (Ministerstwo Pracy) - 1
• the other ministries - 13
• Office for Religious Denomination (Urząd ds. Wyznań) - 1

Other of state administration offices:
• Central Statistical Office - 3
• District Mining Office - 1
• State Committee for Normalization - 2
• Air Traffic Board (Zarząd Ruchu Lotniczego) - 3
• Maritime Economy Office (Seared Gospodarki Morskiej) - 3
• Telecommunication Office - 2
• Customs Office - 1
• Social Security Office (Zakład Ubezpieczeń Społecznych) - 1
• Courts and Prosecutor's Offices - 4
• Territorial ‘self-government offices’ (Samorząd terytorialny, rady narodowe, rady gmin, urzędy wojewódzkie) - 14
• Political and social organizations (central bodies):
• Central Committee of PZPR (Communist Party) (Komitet Centralny Polskiej Zjednoczonej Partii Robotniczej) - 2
• Communist Trade-unions (Ogólnopolskie Porozumienie Związków Zawodowych) - 1
• Polish-Soviet Friendship Association (Towarzystwo Przyjaźni Polsko-Radzieckiej) - 2
• ‘People's Party’ (Zjednoczone Stronnictwo Ludowe) [Communists' Ally] - 1
• Socialist Youth Union (Związek Młodzieży Socjalistycznej) - 1
• Country Youth Union (Związek Młodzieży Wiejskiej) - 1
• Socialist Polish Youth Union (Związek Socjalistycznej Młodzieży Polskiej) - 1
• Polish Students Association (Zrzeszenie Studentów Polskich) - 4
• 'Democratic Party Central Committee (Centralny Komitet Stronnictwa Demokratycznego) [Communists' Ally] - 1
• Trade Unions Central Council (Centralna Rada Związków Zawodowych) - 1
• All-Poland Labor Battalions (Ogólnopolskie Hufce Pracy) - 5
• Association 'Polonia' (Towarzystwo Polonia) [for expatriates, Poles abroad] - 3
• Agriculture Circles Union (Związek Kółek Rolniczych) - 1
Academies, Universities, etc.:
• Mining-Metallurgical Academy (Academia Górniczo-Hutnicza) - 7
• Agriculture university-level schools - 17
• Medical university-level schools (akademie medyczne) - 10
• Technical University in Gdańsk - 8
• Technical University in Krakow (Politechnika Krakowska) - 4
• Technical University in Szczecin (Politechnika Szczecińska) - 18
• Technical University in Katowice (Politechnika Śląska) - 5
• Technical University in Warsaw (Politechnika Warszawska) - 22
• Technical University in Wrocław (Politechnika Wrocławska) - 20
• the other technical universities- 9
• ‘Main School for Planning and Statics’ (Szkoła Główna Planowania i Statystyki) [so-called 'Polish Harvard'] - 10
• University of Poznan (Uniwersytet Adama Mickiewicza w Poznaniu) - 7
• University of Krakow (Uniwersytet Jagielloński) - 6
• University of Lodz (Uniwersytet Łódzki) - 4
• University of Lublin (Uniwersytet Marii Curie-Skłodowskiej w Lublinie) - 3
• University of Wrocław (Uniwersytet Wrocławski) - 6
• University of Warsaw (Uniwersytet Warszawski) - 20
• Physical Education Academy (Academia Wychowania Fizycznego) - 3
• Pedagogical academies (wyższe szkoły pedagogiczne) - 3
• Professional academies (wyższe szkoły zawodowe) - 7
• Other universities in Poland (inne szkoły wyższe) - 18

Students
• 342 students in the registry as collaborators of military services; the highest number (106) in the years 1987-1990

Polish Academy of Sciences (Polska Academia Nauk) – 38
• Research Institute (Instytuty naukowe) - 41
Schools:
• high-schools, technical and professional high-schools (licea, technika i szkoły zawodowe) - 21
• elementary schools - 4

Journalists in TV, Radio and Press – editorial offices (Redakcje telewizyjne, radiowe i prasowe) - 67, including:
• TV and radio - 28
• Polish Press Agency (Polska Agencja Prasowa) - 10
• "Rzeczpospolita” daily - 3
• "Trybuna Ludu” daily - 4
• "Sztandar Młodych” daily - 3
• "ITD” students' weekly - 2
• as well as following titles: "Chłopska Droga”, "Przegląd Techniczny”, "Sportowiec”, "Głos Szczeciński”,
• "Wieczór”, "Tygodnik Polski”, "Radar” and the other ( i inne redakcje) -
• Holding RSW "Prasa, Książka, Ruch” [‘Press, Book & Movement’ – state monopoly for press distribution] - 7

Artistic and cultural institutions, publishers and printing offices (Instytucje artystyczne i kulturalno-oświatowe, wydawnictwa i drukarnie) - 21
• Hospitals and medical institutions (Szpitale i zakłady opieki zdrowotnej) - 34
• Banks:
• Bank Handlowy - 5
• Pekao SA - 4
• ‘Narodowy Bank Polski’ [National Bank] - 3
• Other - 2
• Insurance companies – 3
• International Commerce Centrals (Centrale Handlu Zagranicznego:
• Agros - 9
• Animex - 9
• Baltona - 12
• Budimex - 6
• Chemitex - 3
• Ciech - 22
• Coopexim - 6
• DAL - 12
• Dromex - 2
• Elektrim - 24
• Hortex - 11
• Impexmetal - 35
• Kolmex - 3
• Megadex - 3
• Metalexport - 33
• Metronex - 14
• Minex - 15
• Paged - 6
• Pewex - 1
• Polcoop - 7
• Polimex (Polimex Cekop) - 25
• Polservice - 19
• Rolimpex - 5
• Skórimpex - 12
• Stalexport - 8
• Textilimpex - 7
• Universal - 19
• Varimex - 33
• the other - 23

as well as:
• Polish Intl. Commerce Chamber (Polska Izba Handlu Zagranicznego) - 2
• companies established by expatriates ([called:] ‘firmy polonijne’) - 25
• 'International Poznan Fairs' Międzynarodowe Targi Poznańskie - 2
• Commercial establishments (Przedsiębiorstwa handlowe):
• Agromet - 17
• Centrozap - 19
• Centromor - 15
• the other - 7

Military Production Companies (Przedsiębiorstwa branży zbrojeniowej):
• Bumar - 12
• Cenzin - 1
• CZInż - 3
• Inter Vis - 1
• Steo - 1
• Vis - 1

Fuel & Energy Companies (Przedsiębiorstwa sektora paliwowo-energetycznego):
• CPN - 3
• Gdańskie Zakłady Rafineryjne - 1
• Naftobudowa - 1
• the other of this kind - 32
Metalurgical and mining establishments (Huty i kopalnie, sektor górniczy):
• mines - 11
• foundry, ironworks - 9
• commercial establishment 'Węglokoks - 14
• another mining establishments (inne przedsiębiorstwa górnicze) - 3
Industrial conglomerates, holdings (Zjednoczenia przemysłowe) - 7
Transport companies (Przedsiębiorstwa transportowe i spedycyjne):
• LOT Airlines - 143
• PKP Railways - 5
• PKS Bus Long-distance Company- 15
• Hartwig Spedition- 15
• Polskie Linie Oceaniczne, Ship Company - 36
• Polska Żegluga Berałtycka Ship Company- 32
• Polska Żegluga Morska Ship Company - 26

Maritime sector Companies [besides above mentioned] (Przedsiębiorstwa związane z gospodarką morską):
• Dalmor, ocean fishery company - 9
• Nawimor - 3
• Polcargo - 10
• Polfracht - 8
• the other sea transport companies - 6
• shipyards - 41
• the other companies connected with the shipyards - 14
• port authorities - 10
Electronic sector (Zakłady branży elektronicznej) - 32
• TV- and Radiostations (Nadawcze Stacje Radiowo-Telewizyjne) - 3
• ośrodki ZETO centers- 5

Pharmaceutical branch companies, production and commerce (Zakłady branży farmaceutycznej - produkcyjne i handlowe) - 4
Aviation branch companies (Zakłady branży lotniczej) - 8
Automotive branch companies (Przedsiębiorstwa produkcyjne i handlowe branży motoryzacyjnej) - 15
Production companies - the others branches (Zakłady produkcyjne różnych branż) - 189
Construction companies (Przedsiębiorstwa budowlane) - 60
• Communal companies (Przedsiębiorstwa komunalne) - 23
R&D centers for industry, project bureaus, etc. (Ośrodki badawczo-rozwojowe związane z różnymi gałęziami przemysłu, biura projektowe i konstrukcyjne) - 49
Tourist sector (Biura turystyczne i biura podróży):
• Orbis - 22
• Almatur - 3
• Gromada - 3
• Juwentur - 5
• the other firms - 4, except
• hotels - 2
Building administrations and dwelling-cooperatives, cooperatives at large (Spółdzielczość i spółdzielczość mieszkaniowa oraz administracje mieszkaniowe) - 38
Single collaborators were placed also in::
• Central arrest (areszt śledczy)
• Work office (biuro zatrudnienia) - 1
• Treasury Printinghouse (Drukarnia Skarbowa) - 1
• taxi-cab firms (firmy taksówkarskie) - 5
• Meteorology Institute (Instytut Meteorologii) - 1
• sport clubs (kluby sportowe) - 3
• ‘Folk Riding Team’ (‘Ludowy Zespół Jeździecki’) - 1
• State Mint (Mennica Państwowa) - 1
• astronomy observatory (obserwatorium astronomiczne) - 1
• training centers (ośrodki szkoleniowe) - 3
• State Radio Inspectorate (Państwowa Inspekcja Radiowa) - 1
• State Agricultural Establishment (Państwowe Gospodarstwo Rolne) - 1
• State Pedagogical Establishment (Państwowy Zakład Wychowawczy) - 1
• Private Foreign Language School (Prywatna Szkoła Języków Obcych) - 1
• Materiel Management Council (Rada Gospodarki Materiałowej) - 1
• Regional Technical Authority (Rejonowy Dozór Techniczny) - 1
• restaurants - 3
• Quarantinne and Plant Security Station (Stacja Kwarantanny i Ochrony Roślin) - 1
• Fire-fighters (straż pożarna) - 1
• Vacation Establishments for Military (Wojskowy Dom Wypoczynkowy) - 1
• Communication Club in Wrocław (Wrocławski Klub Łączności) - 1
• Hunters' Union [of Poland](Związek Łowiecki) – 1

Origins of the WSI

In 1980, Communist authorities being well-informed as far as to the scope and size of socioeconomic and political crisis in Poland amount, forecasted main deterioration of the situation of Communist countries. They expected the narrowing of chances for the possibility of influencing the external world. Communists expected the worsening of the military-political situation with the reality of war coming into effect. In connection with this, special aims were put for operational detachments of military intelligence as formulating a concept of secure communications between the Central and agency sources working in the West. The plan, which was ultimately chosen, set up establishing a network of companies on the territory of the neutral countries - from Scandinavia to the Mediterranean. The plan was based on already existing expatriate companies ('spółki polonijne') but also planned to establish new companies and to take over already existing purely foreign (not expatriates') companies. These firms, working legally as regular commercial establishments were supposed to be secret branch offices for communist military intelligence and had to concentrate their works on transferring information from 'agentura' sources in the West to the Soviet Center. The system was expected to be made fully operational in 10 years. The plan took for granted that the whole system would require a huge amount of financial resources, since the firms had to be in healthy condition on western markets. It was expected that the whole scheme would utilize firms sending parcels consisting of western goods on commercial basis to Poland for populations as a part of liaison system. In addition for the same aim the international TIR connection was studied by military intelligence. The Verification Commission identified at least four sources of financing for networks of firms made by People's Republic of Poland (PRL) military intelligence during its work. These four sources were started already in the Eighties and then were in continuity by the WSI:

1. This was income from computer parts smuggled from the West, which were protected in the eighties by COCOM by an export embargo to communist countries and necessary for the Soviet's arms race. The commission has documented at least two cases in which the PRL army intelligence had been involved. The first concerned a network of intermediaries organized by Grzegorz Żemek and Piotr Kuczyński during 1983-1985, which was according to the prosecuting organs of that time, consisted of approximately 100 persons receiving packages containing computer parts from the West. These packages were then sold with much profit to the company IMPOL and the transactions were organized by Żemek and lead by an agent penetrating the trade union NSZZ "S" in that company. In turn IMPOL then sold the goods to army firms belonging to the Ministry of the Interior (MSW). This operation was possible due to the cooperation of [PRL – abbreviation in Polish: ‘People’s Republic of Poland’] army intelligence and the western companies connected with it. Żemek chose for these operations, along with the Swiss company Akerman Electronics, the company BATAx belonging to Wiktor Kubiak; he also cooperated with companies noted by the cofounder of IMPOL – Piotr Kuczyński's "Capitami" from Belgium and ICL from the United Kingdom and Jerzy Pilch-Kowalczyk's firm from the USA.

2. Enormous profits from the illegal trade of computer parts were also attained by the 4th and 8th departments of the Central Board of Engineering (Centralny Zarząd Inżynierii) which was managed in the late eighties by Jerzy Dembowski active as a secret collaborator "WIRAKOCZA". The computer parts sold to the USSR and to the Republic of South Korea brought profits of approximately 500 – 600 thousand US Dollars per single delivery. This was income from computer parts smuggled from the West, which were protected in the eighties by COCOM by an export embargo to communist countries and necessary for the Soviet's arms race. The commission has documented at least two cases in which the PRL army intelligence had been involved. The first concerned a network of intermediaries organized by Grzegorz Żemek and Piotr Kuczyński during 1983-1985, which was according to the prosecuting organs of that time, consisted of approximately 100 persons receiving packages containing computer parts from the West. These packages were then sold with much profit to the company IMPOL and the transactions were organized by Żemek and lead by an agent penetrating the trade union NSZZ "S" in that company. In turn IMPOL then sold the goods to army firms belonging to the Ministry of the Interior (MSW). This operation was possible due to the cooperation of [PRL] army intelligence and the western companies connected with it. Żemek chose for these operations, along with the Swiss company Akerman Electronics, the company BATAx belonging to Wiktor Kubiak; he also cooperated with companies noted by the cofounder of IMPOL – Piotr Kuczyński's "Capitami" from Belgium and ICL from the United Kingdom and Jerzy Pilch-Kowalczyk's firm from the USA.
Enormous profits from the illegal trade of computer parts were also attained by the 4th and 8th departments of the Central Board of Engineering (Centralnego Zarządu Inżynierii) which was managed in the late eighties by Jerzy Dembowski active as "WIRAKOCZA" [cryptic name for secret collaborator]. The computer parts sold to the USSR and to the Republic of South Korea brought profits of approximately 500 – 600 thousand US Dollars per single delivery.
Army intelligence was also involved in illegal financial operations consisting of:
a. foreign bank transaction of the "PORTFOLIO" and "LETTERS OF CREDIT" yielded approximately 40% profit yearly. Sources of financing were among others the funds of the Foreign Trade Central (Central Handlu Zagranicznego); the course of some of these operations is known due to the human source-originated material concerning Grzegorz Żemek.
One of them (not fully explained to this day) was an operation consisting of granting credit amounting to 32 million US Dollars Wiktor Kubiak's company BATAX by Żemek acting in the name of BHI (a branch of the Bank Handlowy, [Warsaw]) in Luxembourg where he fulfilled the role of the director of the Credit Commission; in any case Żemek claimed that this loan was never carried out and only a promise of the loan was issued. BATAX, it seems, carried out an important strategic role in the PRL army intelligence;
b. repurchase of Polish debt through Foreign Debt Administration Fund (FOZZ – ‘Fundusz Obsługi Zadłużenia Zagraniczngo’), lead by a co-worker, secret collaborator of the Intelligence i.e. DIK [cryptic name for secret collaborator] (Mr. Grzegorz Żemek). Mr. Żemek included among others ABI in his activities; Żemek became the director general of FOZZ after consultations carried out by army and civil intelligence. In a report written after these consultations, he claimed that the "profits that could additionally be 'milked' from these operations amounted to the sum of 500 million US Dollars per year";
c. Taking over inheritances of deceased abroad former Polish citizens. Documented profits of such operations surpass millions of dollars;
d. Arms trade with Arab terrorists. Plans and intentions for the year 1990 of Department ‘Y’ (more on its activity and origin follows) included written information that arms trade should be an important source of "financing outside the service". Janusz Onyszkiewicz as Minister of National Defense published a directive approving "outside financing" of the army. [Gen.] Bolesław Izydorczyk issued approval for operations in the sale of arms to Sudan and Latvia, which was supposed to bring profits of around 200 000 – 400 000 USD to the service.
3. Intelligence had been establishing on the territory of Poland, through theirs secret collaborators acting at Polish firms - common ventures ([called even in Polish: 'joint venture'), expected to bring in return really huge profits. The example of such business was among the others a scheme of a joint establishment made by [Polish national airline] LOT as well as started in Chicago a firm by the name of 'ABI'. Both partners made a casino for hazard games located in the Hotel Marriott in Warsaw. Middleman for this operation, in whose 'ABI' transferred a million dollars was a company
BATAX belonging to Mr. Wiktor Kubiak.
4. The Foreign Intelligence tried also very hard to start with TV company. Original thinking for such activities was to make easy to place secret collaborators on the West. Mr. Grzegorz Żemek, who in behalf of Intelligence started his talks with firm called 'ITI' and its representatives Mr. Jan Wejchert and Mr. Mariusz Walter, in such a way explained the beginning of those undertakings. The very important role was played by a source working in [the state-controlled movie-industry firm called] 'Film Polski', however matters were much more complicated since also important role in the FOZZ operations played certain Mr. Weinfeld, a German citizen of Polish ancestry living in California. Mr. Weinfeld was the owner of media industry company. Both Mr. Weinfeld and Mr. Żemek made strong involvement in a take-over of the Dutch media-industry company called SEPP and for this reason Mr. Żemek in behalf of FOZZ transferred his powers to the firm ‘Biccarco’ belonged to Mr. Andrzej Kuna. ‘Biccarco’ bought out shares of the SEPP company. In the nineties military services built-up around old [from the communist period] Intelligence, around the 2nd Directorate of the General Staff (Zarząd II SG), concentrated its efforts on building home apparatus as well as making firms acting under cover. The consequences of this practice were to gain by the Services extraordinary influence on national economy and many aspects of social situation of the country. Secret services put also attention on gaining extra-budget financial means. As early as 1983 the Intelligence started to transform itself thoroughly, in consequence of this central role gained in this process a special detachment established on the 1st of November, 1983 so-called 'Y' Department. This unit, whose most personnel was trained in the Soviet Union, got very special aims for realization as a kind of re-orienteering intelligence activities and making network of firm being secret branch offices for communist secret services.