The CNVM isn"t getting involved in the conflict between SIF2 and its former chairman

Alexandru Matei, the former president of SIF "Moldova" (SIF2), who is currently a member of its Board of Directors, has requested an audience with the Romanian National Securities Commission (CNVM) in order to present his opinion on the conclusions of an audit report of the SIF which revealed certain irregularities in deals involving certain of the company"s assets which had been concluded during his tenure.

The request of Alexandru Matei comes as the company"s shareholders were summoned on September 23rd to vote on whether he would be allowed to remain on the board of directors of SIF2, in light of the findings of the audit report.

Mr. Matei was received yesterday by Gabriela Anghelache, the president of the CNVM.

Mrs. Anghelache said: "Mr. Alexandru Matei wanted to express his opinion on the accusations which were publicly made against him, in the press, as well as in the presentation which SIF Moldova attached to the Agenda of the General Shareholder Meeting, where one o the items was the discussion on the opportunity of keeping him on the Board".

A major scandal broke at the top of SIF2, after the management of the company decided to disclose the findings of an internal investigation which found that SIF2 sold a retail space belonging to one of the companies in its portfolio, to Alexandru Matei. The sale was made even though no competing bids had been received, despite the fact that this requirement had been set by the General Shareholder Meeting. The investigation has also warned about a conflict of interest in the case of the former president. At the end of 2004, SIF 2 sold a retail area owned by Gastrocom Iaşi (in which SIF2 was a majority shareholder) to "LEES COM" SRL Iaşi, which at the time of the deal had only one shareholder: Matei Codrin, the son of Alexandru Matei.

The former chairman of SIF2 denied the charges, and claimed that some of the other directors wanted to remove him from the Board. Alexandru Matei subsequently sued the members of the Board.

The president of the CNVM also said that the institution which she is leading can not get involved in the situation of SIF2: "We can"t get involved in the situation which was created at SIF2, since this involves discussions which concern the operation of the company.

What we can do is to ensure that both sides receive a fair treatment: The Board of Directors and Mr. Matei.

I told Mr. Matei that he will be able to present his point of view to the shareholders at the General Shareholder Meeting in September, either directly, either through a document posted on the website".

Contacted by BURSA, Costel Cocea, the president of SIF2, said that the company has submitted the full report containing the findings of the internal audit to the CNVM.