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08.09.16

Rumours About Likely Salary of (or Compensation to) Jesper Kongstad of the EPO Administrative Council

Posted in Europe, Finance, Rumour at 8:40 pm by Dr. Roy Schestowitz

Kongstad scam

Summary: Successor of Benoît Battistelli at the Administrative Council, Jesper Kongstad, is rumoured to be hiding something from tax authorities, but lack of transparency in “Eponia” prevents actual verification

THE EPO is no stranger to controversy and scandals. There is virtually no oversight there, no transparency, no accountability. This breeds distrust and often abuse as well. The USPTO is an angel in comparison as it doesn’t enjoy exemptions from European or US laws. There is no “USponia”, only “Eponia”.

“We just read your article with the title "Rumours About Secret EPO Salary of Benoît Battistelli",” some readers told us. “We’re surprised that you didn’t give any mention to the “Rumours About Secret EPO Salary of Jesper Kongstad”…

“If these rumours were true, then as a Danish civil servant he could be in serious trouble if the Danish tax authorities ever happened to investigate the matter.”
      –Anonymous
“At the end of an interview published by MIP in March of this year Kongstad was quoted as claiming that he does not receive any remuneration for his work at the EPO: “I am now spending about half of my time on EPO-related work, but I do not receive any remuneration for that.”

“In the MIP interview Kongstad was emphatic about the “pro bono” nature of his work for the EPO but not everybody is prepared to buy that storyline.”

Recall this embarrassing recent story. The readers continue: “In fact for some time now there have been persistent rumours circulating that he is somehow “on the payroll” at the EPO although nobody seems to know the precise details about this. Evil tongues have even been heard to say that he does not disclose this additional remuneration for tax purposes in Denmark. If these rumours were true, then as a Danish civil servant he could be in serious trouble if the Danish tax authorities ever happened to investigate the matter.

“It is important to emphasise that these are just rumours.”
      –Anonymous
“According to this report from 2010, under Danish law intentional and systematic tax evasion can lead to 8 years imprisonment and penalties of twice the unpaid tax liability. However, given the lack of effective oversight at the EPO it’s unlikely that Kongstad has anything to fear. Even if there was an investigation he would probably be whitewashed by the Internal Audit department which operates the EPO’s Investigative Unit and only answers to Battistelli. We are unlikely to see a truly independent audit of Kongstad’s financial relationship with the EPO any time soon.

“It is important to emphasise that these are just rumours. The close symbiosis between Kongstad and Battistelli and the fact that Kongstad is one of the few people privy to the details of Battistelli’s contract lends a certain amount of plausibility to the rumours. But in the absence of an independent audit nobody can say for certain how much substance there is to them. The fact that Kongstad went on record in March to specifically deny that he receives any remuneration for his EPO activities might be an indication that he felt a need to say something in public to counteract these rumours.”

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