ECONOMY FINANCE&BANKING

Shares held by state in 28 companies to participate in share capital of Sovereign Development and Investment Fund. Orban: Dragnea and Tariceanu are destroying Romania’s economy; so-called Sovereign Fund is, in fact, a mega-swindle

The shares held by the state in 28 companies will participate in the share capital of the Sovereign Development and Investment Fund (FSDI), representing a contribution in kind worth 10,112 billion lei, according to a draft Government Decision published by the Ministry of Public Finance.

The total share capital of FSDI is initially set at 19,112 billion lei and consists of a cash contribution of 9 billion lei coming from privatization revenues and a contribution in kind represented by nominative stock packages worth 10,112 billion lei, held by the state within the 28 economic operators.

The shares held by the state will make up the FSDI capital in the following companies: Engie Romania, Electrica, Delgaz Grid, E.ON Energie Romania, Chimcomplex, OMV Petrom, Telekom Romania Communications, Romanian Lottery, IAR, Oil Terminal, Romgaz, Hidroelectrica, Bucharest Airports National Company, Nuclearelectrica, National Imprimeria, Conpet, Timisoara International Airport Traian Vuia, Spa Treatment and Recovery Society TBRCM, Danube River Basin Administration, National Company for Boiler Control, Lifting Pressure Vessels’ Company, Cuprumin Abrud, National Salt Society, Romaero, Constanta Ports Maritime Administration, Navigable Canal Administration, Antibiotics and Unifarm National Company.

The Chamber of Deputies adopted the Law on the Establishment of the Sovereign Development and Investment Fund – SA in its meeting on 6 June 2018 as a decision-making chamber. The legislative act was, however, declared unconstitutional by the Constitutional Court on 18 July 2018, given the individual character of the law and the fact that, according to Law no. 15/1990 on the reorganization of the state economic units as autonomous administrations and commercial companies, “the economic units of republican interest are organized as commercial companies through a Government decision.”

 

Orban: Dragnea and Tariceanu are destroying Romania’s economy; so-called Sovereign Fund is, in fact, a mega-swindle

 

PNL leader Ludovic Orban claims that the PSD-ALDE alliance “seems to be acting based on a plan devised by enemies of Romania in order to destroy Romania’s economy.” Orban states that the setting up of the Sovereign Fund for Investments and Development is a “mega-swindle” whose goal is to place the most profitable companies under political control.

“The PSD-ALDE Governments seem to be acting based on a plan devised by enemies of Romania in order to destroy the Romanian economy. Blocking the large transport infrastructure projects, blocking public investments, destroying the financial-banking system, destroying the energy sector, putting the communication systems in difficulty, nationalising Pensions Pillar 2, robbing the Romanian companies, blowing up the local public finances, generating grave economic imbalances, deterring Romanian and foreign private investments, isolating Romania internationally, literally driving hundreds of thousands of Romanians away from the country, collapsing the authority of state institutions, blocking public procurements in the defence sector, underfinancing the intelligence services (which protect Romania from ever-growing national security threats), these are actions that no longer seem to be the fruits of coincidence, but of premeditation that hides hostile intentions against Romania,” Ludovic Orban wrote on Facebook on Sunday.

According to him, “the new attempt to set up the fatidic Sovereign Fund for Investments and Development is among the most dangerous blows.”

“After we managed to block it for a while, by challenging it at the Constitutional Court, the Government returns with a new bill. The so-called Sovereign Fund is, in fact, a mega-swindle through which several objectives are sought: placing under Dragnea’s political control the most important and profitable Romanian state-owned companies; obtaining money in the form of loans, by using the companies’ shares as backing; using this money for politically-decided investments; removing from under the European legislation on procurements all contracts that will be signed, in order to feed the PSD-ALDE’s political-economic clientele with public funds, without any oversight from state institutions; the hostile takeover of these Romanian companies by some obscure clients of the current ruling power, as a result of the impossibility of repaying the loans etc.,” Orban wrote.

He announced that the PNL will use all weapons to prevent the setting up of this Fund which “represents nothing but PSD and ALDE’s money box, fuelled with our money, the money of Romanian citizens.”

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