Oltchim faces investigation

During a press conference on Wednesday, Victor Ponta declared that the result of the privatization must avoid losing the existing jobs.

According to the Premier, the debt Otchim plant has increases by 200 million every day, the entire debt at the present date being 700 million Euros.

The Ministry of Economy and the National Agency for Fiscal Administration (ANAF) are making an investigation and will let the National Bureau of Investigation know about any problem they find at Oltchim, said Victor Ponta.

The Premier declared that privatization procedures had been established by a consultant who imposed an open auction to the procedure.

‘We cannot assume the risk of having only one buyer’, said the Premier.

According to the head of the executive, converting in stocks the debt to The State Assets Resolution Authority can be done when you own two thirds of the shareholders general meeting.

The ministry of economy suggested to sell separately the 54% stocks and debts in order to make the conversion possible, added the Premier.

Oltchim Privatization

The privatization of Oltchim plant remains undefined as the potential buyer, the controversial business man and television owner Dan Diaconescu, refused to sign the agreement with the state on the grounds that the document is incomplete.

Victor Ponta showed signs of dissatisfaction regarding Diaconescu’s reasons for not signing the agreement, saying there are traces of a political deal between Dan Diaconescu and the former representatives of the Democratic Liberal Party (PDL), which was made in order to hide their errors.

In reply, PDL’s interim president Adriean Videanu says “ it is the government fault that the privatization of Oltchim plant was unsuccessful.

Leaving reproaches aside, the plant remains in a difficult situation and the privatization postponement only brings new debts to state budget.

The former Minister of Privatization, Valentin Ionescu, says that the privatization procedure cannot raise legal issues.

‘If the contract is not signed - and we have all proof this will happen, then the company needs to begin a judicial reorganization or concordat procedure, which means restructuring the company. It is a step that needs to be done, by the debtor or by the shareholder’, declared Valentin Ionescu.

One of the conditions imposed by the IMF includes the privatization of Oltchim, the last deadline being 21st of September.

IMF did not say however that this should be done no matter the factors, adds Valentin Ionescu.

‘The Monetary Fund imposed that Romania should privatize Oltchim, but not under any kind of circumstances. Romania had all the necessary time and this year only had at least six months to think this over, let alone the fourteen years during which no measure of restructuration or privatization was taken. IMF wants this company to cut off losses’, added the former Minister of Privatization.

The premier said however that the government proved to be politically willing and that IMF will support the privatization of Oltchim.

The meeting with IMF is planned for Friday.


Translated by Angelica Tapoca
MTTLC, Bucharest University