The CNVM to postpone the decision in the Dinel Staicu case by one day

The Romanian National Securities Commission (CNVM) announced that it would wait until today to issue its ruling on the possible effects of Dinel Staicu being sentenced to four years in jail would have on the domestic capital market.

Market sources stated for BURSA that the officials of the CNVM wanted to present their ruling yesterday night, but they postponed the announcement because some of its commissioners are on holiday and are therefore unable to individually sign their decision.

The same sources said that the court ruling has placed the commissioners of the Romanian National Securities Commission in a somewhat unfavorable position, because the Romanian National Securities Commission is the only institution with the right to decide on matters pertaining to the capital market: "Capital market legislation only sanctions elements that are tied to the capital market itself".

"It is certain that the ruling of the court deprives Dinel Staicu of certain public rights, but no one can forbid him from performing commercial activities. SIF Oltenia is a private company, the CNVM can not intervene and forbid people in that company to do business based on a ruling which does not concern the capital market", the quoted sources said.

Dinel Staicu was indicted in November 2006, by the National Anticorruption Department, together with the former CEO of the International Bank of Religions. As a result, the Romanian National Securities Commission requested that the Board of Directors of SIF Oltenia summon the General Shareholders" Meeting, and have the shareholders vote on whether Staicu would remain the CEO. In August 2008, the shareholders of SIF Oltenia decided that Staicu would remain in charge of the company until the court would issue a final ruling.

• Staicu sentenced to four years in prison

On Tuesday, Dinel Staicu, the chairman of the Financial Investment Company "Oltenia" (SIF5) was sentenced to four years in prison for complicity in abuse while on duty against private-interests, according to a ruling issued by the Court of the Fourth District of Bucharest. The ruling comes almost six years after Dinel Staicu, together with several employees of the International Bank of Religions drew the attention of the National Anticorruption Prosecutor"s Office (PNA).

The charges brought by the prosecutors included aggravated abuse of office against public interests, the use of loans for other purposes, as well as failure to monitor their use, according to banking regulations. The PNA representatives claimed at the time that they had information that, between 1999 and 2000, the IBR had assigned claims worth 106.7 billion ROL, claims held against 11 companies owned by Dinel Staicu.

The prosecutors had collected information that the current chairman of SIF "Oltenia" requested and obtained nine loans, of which he only paid back insignificant amounts, causing the IBR to incur a loss estimated at almost 273 billion ROL. Prosecutors allege that Dinel Staicu used part of the borrowed funds to pay the downpayment for the assignment of claims, even though such action was prohibited by bank regulations, to buy shares or to pay back installments coming due. Moreover, in some cases, several loans were guaranteed using the same collateral. For instance, an overvalued building was used as collateral for two successive loans.

Dinel Staicu was indicted in November 2006, by the National Anticorruption Department, together with the former CEO of the International Bank of Religions, Ion Popescu. Together with Radian Răceală and Viorica Duţu, they were sentenced to pay 8.05 million lei plus interest accrued from the date each loan was taken by the 11 companies of Dinel Staicu.

According to Mediafax, Dinel Staicu yesterday said that he has filed an appeal and that he will remain the CEO of SIF5 until the court issues a final ruling.

ŞTEFANIA CIOCÎRLAN

The CNVM to postpone the decision in the Dinel Staicu case by one day

The Romanian National Securities Commission (CNVM) announced that it would wait until today to issue its ruling on the possible effects of Dinel Staicu being sentenced to four years in jail would have on the domestic capital market.

Market sources stated for BURSA that the officials of the CNVM wanted to present their ruling yesterday night, but they postponed the announcement because some of its commissioners are on holiday and are therefore unable to individually sign their decision.

The same sources said that the court ruling has placed the commissioners of the Romanian National Securities Commission in a somewhat unfavorable position, because the Romanian National Securities Commission is the only institution with the right to decide on matters pertaining to the capital market: "Capital market legislation only sanctions elements that are tied to the capital market itself".

"It is certain that the ruling of the court deprives Dinel Staicu of certain public rights, but no one can forbid him from performing commercial activities. SIF Oltenia is a private company, the CNVM can not intervene and forbid people in that company to do business based on a ruling which does not concern the capital market", the quoted sources said.

Dinel Staicu was indicted in November 2006, by the National Anticorruption Department, together with the former CEO of the International Bank of Religions. As a result, the Romanian National Securities Commission requested that the Board of Directors of SIF Oltenia summon the General Shareholders" Meeting, and have the shareholders vote on whether Staicu would remain the CEO. In August 2008, the shareholders of SIF Oltenia decided that Staicu would remain in charge of the company until the court would issue a final ruling.

• Staicu sentenced to four years in prison

On Tuesday, Dinel Staicu, the chairman of the Financial Investment Company "Oltenia" (SIF5) was sentenced to four years in prison for complicity in abuse while on duty against private-interests, according to a ruling issued by the Court of the Fourth District of Bucharest. The ruling comes almost six years after Dinel Staicu, together with several employees of the International Bank of Religions drew the attention of the National Anticorruption Prosecutor"s Office (PNA).

The charges brought by the prosecutors included aggravated abuse of office against public interests, the use of loans for other purposes, as well as failure to monitor their use, according to banking regulations. The PNA representatives claimed at the time that they had information that, between 1999 and 2000, the IBR had assigned claims worth 106.7 billion ROL, claims held against 11 companies owned by Dinel Staicu.

The prosecutors had collected information that the current chairman of SIF "Oltenia" requested and obtained nine loans, of which he only paid back insignificant amounts, causing the IBR to incur a loss estimated at almost 273 billion ROL. Prosecutors allege that Dinel Staicu used part of the borrowed funds to pay the downpayment for the assignment of claims, even though such action was prohibited by bank regulations, to buy shares or to pay back installments coming due. Moreover, in some cases, several loans were guaranteed using the same collateral. For instance, an overvalued building was used as collateral for two successive loans.

Dinel Staicu was indicted in November 2006, by the National Anticorruption Department, together with the former CEO of the International Bank of Religions, Ion Popescu. Together with Radian Răceală and Viorica Duţu, they were sentenced to pay 8.05 million lei plus interest accrued from the date each loan was taken by the 11 companies of Dinel Staicu.

According to Mediafax, Dinel Staicu yesterday said that he has filed an appeal and that he will remain the CEO of SIF5 until the court issues a final ruling.