Siderca Privatization Smells Like Trouble

The Government's project to revivify iron&steel milling in Calarasi seems to be squeaking in all its joints. The Cabinet took the first step towards this end in early 2001, when Siderca, a company that had been undergoing liquidation procedures since 1999, was brought back to life. After a visit to Calarasi, Premier Adrian Nastase announced that the viable part of Siderca (the electric steel works and the mill for tracks and heavy moulds) would be split away without being burdened by the Siderca's debts. According to the plan, Donasid, the viable splinter, was to be later privatized to a consortium formed by Siderca (30 percent) and Italian-based Beltrame (70 percent). Nevertheless, The National Liberal Party (PNL) revealed that the founding act of the new company included an ltd. company (FIAB) controlled by an Italian citizen and not the Italian company Beltrame. The share capital of the company-to-be was set at 20 million USD, of which 14 million USD was to come from the Italian shareholder. However, problems related to the shareholder structure of the company seem to have blocked all operations. The management of Donasid recently summoned the shareholders to pay the money due as share capital by mid this month, that is, approximately four months after the deadline set for January 9th, 2004. Strangely, the summons was not issued to FIAB SRL (Ltd), but to Beltrame...Switzerland instead of Beltrame Italy.

Anton Sara, economic manager of Siderca, claims that shareholders Beltrame and SNCFR (Romanian National Railway Company) did pay the 4.3 million EUR, respectively 700,000 EUR they owed a few days ago.

Donasid halted all operations last November, only four months after Premier Nastase had gone to Calarasi for the second time to inaugurate the project officially. "Causes beyond the public administration authorities, that is, the lack of capital and a number of problems unknown to us until recently, forced the company to halt all operations," said Gabriel Oprea in a recent response to an interpellation related to the Siderca privatization. Governmental sources claim that the company has halted operations because its shareholders failed to subscribe the money in time to capitalize the company. Moreover, these sources say that, throughout the few months of its life, Donasid piled up 54 billion ROL worth of debts to Siderca. Anton Sara confirmed this sum for "Bursa," adding that the money was owed for scrap iron Siderca had delivered in that interval. Siderca on the other hand concluded last year with a turnover of 109.2 billion ROL and losses of 453 billion ROL.