CSG Denies Financial Ties to Kaliňák's Law Firm
The defense and engineering conglomerate Czechoslovak Group (CSG) has denied media reports about an alleged secret “money channel” between the financial startup Fingood and the law firm Kallan Legal. Slovak Defense Minister Robert Kaliňák holds a majority stake in the law firm.
“Neither the CSG Group nor I personally have ever been a contractual partner between Fingood and the law firm Kallan Legal,” CSG CEO and owner Michal Strnad stated in a comment to bne IntelliNews.
Strnad also emphasized that CSG had never commissioned or paid for legal services from the firm. Furthermore, there are no financial ties between the company and Minister Kaliňák. Strnad also clarified that he is neither an owner of Fingood nor involved in its management.
Media Reports on Payments
The statement responds to an investigation by the Czech online portal Seznam Zprávy. According to the report, Fingood is said to have made payments to Kallan Legal over several years.
A former manager of the startup told the outlet that between two and three million Czech korunas were transferred to the law firm annually. For the small company, this was a substantial sum.
According to the report, former executives also confirmed these payments. Former CEO Vít Endler stated that Kallan Legal had regularly issued invoices—some amounting to tens of thousands or even hundreds of thousands of crowns per month. FinGood originally planned to enter the Slovak market. However, according to the company, the project was abandoned in 2024.
Connection to Defense Contracts
Journalists suspect that the payments may be linked to the extensive defense contracts that CSG has received from the Slovak Ministry of Defense since 2023. Since Prime Minister Robert Fico’s Smer party returned to power, CSG is said to have received contracts worth approximately 60.36 billion euros, according to investigative journalists.
Kaliňák confirmed to Seznam Zprávy that his law firm had worked for Fingood. However, due to attorney-client privilege, he could not provide any further details. He also stated that he knew nothing about a possible connection between Fingood and Strnad.
CSG Points to Stock Market Success
CSG is one of Slovakia’s leading defense contractors. According to Euronext, the company’s initial public offering (IPO) on Euronext in Amsterdam on January 23 was described as the largest IPO by a defense company worldwide.
With a market capitalization of around 32 billion euros, CSG is now considered the most valuable Czech company, surpassing the state-controlled energy provider ČEZ. Bloomberg estimates the net worth of CSG CEO Michal Strnad at around 37 billion U.S. dollars. This makes him one of the richest entrepreneurs under 40 worldwide.
The Defense Industry as a Political Controversy
Strnad explained that the defense industry is one of the most heavily regulated sectors. He also confirmed that he knows Kaliňák personally, but emphasized that their collaboration took place exclusively within the context of developing the Slovak defense industry.
“Thanks to this strategy, Slovakia has developed in recent years into one of Europe’s leading manufacturers of large-caliber ammunition,” Strnad said. This has created thousands of jobs and generated significant tax revenue for the state. He also criticized the fact that the development of the defense industry has increasingly become part of political disputes.
CSG is currently continuing to invest in the expansion of its production capacities in Slovakia, Strnad explained. The defense contracts under discussion are predominantly framework agreements that other countries could also join.
This article was produced in cooperation with our partner bne intelliNews
