One of those who were lucky enough to start a business at a time when most of society didn’t even know what it was, is Karol Martinka. He had the ideal prerequisites for a career: a prominent position, good communist credentials and a desire to make money. His father was Minister of Finance of the Slovak Socialist Republic and Deputy Prime Minister.
Martinka Sr. was the deputy of the Council for Mutual Economic Assistance, a multinational grouping of socialist states, and was also in charge of negotiations with the UN economic commissions. His son Karol Martinka followed in his footsteps, studying economics in Bratislava and taking up a prestigious post at the embassy in Austria. He put down roots in Vienna during communism and began earning money as a consultant to foreign companies interested in doing business in Czechoslovakia.
He returned to Slovakia after the fall of communism. In addition to his acquaintance with politicians around Vladimír Mečiar, he was helped by his wife Blažena, who was Mečiar’s famous “advisor for everything”.
Martinek’s moment came after the National Property Fund announced a privatisation tender for the Piešt’any Spa. The businessman wanted to acquire the lucrative property in 1994, when he was acting as an Austrian investor, but he succeeded only two years later, when Mečiar was much more powerful.
Martinka acquired Piešt’any Spa through shares in the Piešt’any Spa Employees Company. The state accepted a significantly lower amount than the estimated value of the spa.
While the experts talked about a price of roughly CZK 1.3 billion, Martinek only had to pay CZK 600 million. Moreover, the National Property Fund overlooked delays or non-payment of promised privatisation payments. The employee company gradually transferred the shares to Martinek’s company Vadium Group.
The change came after the fall of Mečiar and the election victory of Mikuláš Dzurinda. The prosecutor’s office brought charges against Karol Martinek for fraud, alleging that he, through the Vadium Group, had deprived the National Property Fund of 51 % of the shares in the Piešt’any spa. The state allegedly suffered CZK 600 million in damages.
In July 1999, Martinka had to return the spa to the state. Fearing prosecution, he again went to Austria, where he was protected by the authorities. He appeared in Slovakia only after the charges were dropped and planned several court attacks on what he considered to be the unfair procedure of the state.
He could not keep the vast fortune he had amassed thanks to his proximity to government circles. He has lost much of it, but continues to live in prosperity. It has not, however, guaranteed him happiness in his private life. His wife Blažena – a close adviser to Vladimír Mečiar – suffered from serious psychological disorders. It is striking that the prime minister of the state often acted on the advice of a woman who suffered from delusions. She eventually decided to commit suicide after an attempt was made on her son’s life. In 2014, Martinka’s elder son took the same tragic step.
