English
• PCC set its own conditions for the conversion of the AVAS receivables
• Oltchim will not see one leu out of this privatization
Reporter: Minister, what is the deadline for the transfer of the money by the buyer of the majority stake in Oltchim owned by the state? What would be the consequences, from all points of view, if Dan Diaconescu doesn't pay the money within the required delay? Will the process for the privatization of Oltchim be resumed, or will the OPSPI negotiate with the next most qualified bidder?
Daniel Chiţoiu: According to the submitted tender, the money has to be transferred on the date of the signing of the contract, and according to the tender book, the contract has to be signed within ten days from the date of the selection of the winning bidder.
If the winning bidder doesn't pay the money, we are talking about criminal consequences. We are talking about misleading the privatization commission, about fraud.
In the case of Oltchim, we also have a major social component to consider. No one can play with something like that, with the hopes of the employees, with the fates of the tens thousands of people.
If something like this happens, the process will be restarted. But let me tell you, at the moment, we are not considering anything of the kind. We have a winner who has met absolutely all the requirements for participating in the auction, he offered a much higher amount than we were expecting, and he has made the commitment to bring into Oltchim much bigger amounts to ensure working capital.
Reporter: What will happen to the two unsold receivables? Is there any possibility of AVAS/Electrica asking for immediate repayment of those debts, thus causing Oltchim to go bankrupt?
Daniel Chiţoiu: Yes, that possibility exists, but we do not believe that it is in anyone's interest. The interest of the state is to recoup its receivables at their par value. Moreover, so far, the discussion on that subject has never been brought up.
Reporter: Speaking of the privatization procedure and the conversion of the receivables, what were the terms requested by PCC, which led to the selection of the current manner for privatizing Oltchim?
Daniel Chiţoiu: First of all, let me tell you that in order to conduct this privatization process, which according to the agreements with the IMF had its deadline set for April, in December 2011, a consulting firm which is recognized worldwide - PricewaterhouseCoopers - was selected by the Boc government. This company provided consulting on the drafting of the privatization strategy, as well as in achieving the full documentation which underlay the privatization procedure.
PCC had its own request concerning the conversion of the receivables, namely for that conversion to take place between the selection of the winner of the call for tenders and the date of the signing of the contract. This led to the idea that PCC SE would be designated as the winner, and what's more, that it would become the owner without paying one leu for the receivables, by buying just the stake owned by the state. We couldn't accept anything like that. Just like PCC wouldn't accept for the conversion taking place without their terms being met. Thus, on August 10th, PCC sent a letter by which it announced that it would vote against the conversion in the Extraordinary General Shareholder Meeting of September 10th, and that is as performing the conversion the votes of shareholder which together own two thirds of the share capital of the plant, (ed. note: the Romanian state only owns 54.8% of the shares of Oltchim).
Reporter: Will the former CEO of Oltchim be held liable for the disastrous management of the plant?
Daniel Chiţoiu: All those who are to blame for the current state of Oltchim will be held liable. It won't be just one person. Together with the ministry of Finance, we have already begun audits of Oltchim, following which we will take all the necessary measures.
Reporter: If the privatization fails for various reasons which are outside the control of the Ministry of the Economy, did the IMF suggest you have the plant declared bankrupt/insolvent?
Daniel Chiţoiu: Like I have already told you: we have no reasons to think that the privatization would fail. But, just to answer your question, if it does fail, we will renegotiate.
Reporter: Is the loan which the government intends to grant to Oltchim using the buyer's money a state aid, which must be announced to the European Commission? What is the reason for the Ministry of the Economy proposing such a measure to the government?
Daniel Chiţoiu: The loan which we talked about represents a safeguard, granted for a period of just six months, at the market's interest rate, which only needs to be notified to the European Commission, but without the approval of the Commission being necessary. After six months, the company will repay the money. So, there can be no question of a state aid.
This measure has been in the works for quite some time, since before the sale of the shares. The documentation was still being worked on, when the call for bids was held, and the purpose of that measure was to ensure the money needed to resume activity and to pay the wages.
But at this moment, when we have another winner in the person of Dan Diaconescu, a bidder who, through his submitted tender has pledged to bring in a lot of money for working capital, we can't be talking about any loan any longer.
Reporter: Given this media ruckus created by Dan Diaconescu, do you think any foreign investors will participate in the other privatizations?
Daniel Chiţoiu: Foreign investors don't pay attention to things like that. They are interested in economic matters, in the financial data of the company, they are looking at the manner in which the Romanian government fulfils its obligation, and how fair the calls for tenders are conducted.
Reporter: There are suspicions that Dan Diaconescu is playing the game of president Traian Băsescu through this privatization. How would you comment?
Daniel Chiţoiu: We have no suspicions. So I have no reason to comment.
Reporter: Prime minister Victor Ponta said that you would answer with your head for this privatization. Moreover, you informed Victor Ponta that there are 12 investors interested in Oltchim. Will you resign, if the privatization fails?
Daniel Chiţoiu: The fact that the number of potential investors who bought the tender books was greater than the number of bidders in the call for tenders is outside the control of the Ministry of the Economy or of the minister. Let us wait and see.
Reporter: According to the European legislation, the authorities can not impose any post privatization conditions on the buyer. Or, to put it another way, if the buyer pays the amount, it can do whatever it wants with the plant afterwards. What methods does the Romanian state have available to defend itself against such actions, considering that Râmnicu Vâlcea, and Arpechim both come with heavy social issues attached?
Daniel Chiţoiu: The moment we entered the European Union, we have the obligation to comply with the European legislation. And this legislation very clearly states that you can't prohibit anyone from participating in a call for bids as long as they fulfill all the requirements and you can't place any requirements on them.
Reporter: Thank you!
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