THE OFFICIAL GAZETTE CONTRADICTS THE MINISTER OF THE ECONOMY THREE TIMES Exclusive: What amount of European funds was Minister Videanu looking to raise for Marmosim and how was he planning to do it

• On April 22nd, the Ministry of the Economy said that minister Videanu had found from the management of the company about the matter of the funding from the European Community, just as Adriean Videanu who is a shareholder of Marmosim had approved the project three days earlier

• The almost 1.26 million in European grants - were approved by the General Shareholders" Meeting, on the same day with the letter sent by minister Videanu to the European commissioner, Johannes Hahn

The official position presented by the Ministry of the Economy, helmed by Adriean Videanu, on the controversial issue of the European funds that Marmosim, controlled by the same Adriean Videanu, intended to raise is repeatedly contradicted by the contents of the Official Gazette.

The shareholders of Marmosim approved the project to draw European grants on April 19 2010, on the very same day that minister Adriean Videanu wrote to the European commissioner for durable development, Johannes Hahn, mentioning his conflict of interest and asking whether Marmosim was eligible for European grants, considering the fact that Adriean Videanu was a majority shareholder in the company and a Minister at the same time.

The conflict of interest was obvious to say the least, when one realizes that the authority which coordinates the distribution of European funds that Marmosim had applied for, was subordinated to the Minister of the Economy himself: Adriean Videanu.

Furthermore, two weeks before the approval of the project which was going to be financed using European funds, the shareholders of Marmosim also decided to extend the credit facility and to maintain the collateral for the 1.6 million Euros loan taken from Raiffeisen Bank. Coincidentally, the amount of 1.6 million Euros seems to overlap with the bank loan of 6.8 million lei, that the company included as part of the scheme to finance the project for which the grant was requested. The shareholders of Marmosim empowered Mioriţa Videanu to negotiate the terms of the loan. Mioriţa Videanu is the wife of minister Videanu, who is also the chairman and majority shareholder of Marmosim.

Thirdly, the very notice to attend for the Shareholder meeting of April 19th specified the name of the person who had been appointed to sign the document for the structural funds.

Under these circumstances, the question remains: why did Adriean Videanu wait until April 19th to consult with the European Commission to see whether his company was eligible to receive European grants.

Or rather, why did minister Videanu all of a sudden decide to consult with the European Commissioner on this matter on the very same day that he approved the project proposed by the General Meeting of Shareholders of Marmosim?

Especially after one realizes, that the Videanu spouses will now need to summon another General Meeting of Shareholders and cancel the vote of April 19, or else the project financed with European grants would still remain valid. The minister of the Economy, Adriean Videanu, was not available for comment before the paper went to print.

• DATA AND FACTS

MARCH 18, 2010. The Official Gazette publishes the notice to attend the shareholder meeting of Marmosim, scheduled for April 19 2009. Item 9 on the agenda stated the following: "The approval of the budget and the main categories of expenses for the investment project intended to < Increase the competitiveness > of SC MARMOSIM SA, by retooling the Dealul lui Ionel quarry, of the Ruşchiţa perimeter, located in the commune of Rusca-Montană, county of Caraş Severin, with high performance equipment. The appointment of Samachisa Pusa-Felicia to sign and file the application for financing through structural funds and to represent the company in its relationships with the backer".

April 8, 2010. Shareholders of Marmosim approve a revision of the credit facility with overdraft, by which it extends until December 31st 2010 the ongoing loan facility which is ongoing with Raiffeisen Bank of 1.6 million Euros.

Coincidentally, this is precisely the amount that was the project expected to raise from a bank. The shareholders

The shareholders of Marmosim empower Mioriţa Videanu to negotiate the terms of the credit facility, in the best interest of the company and to sign in the name and on behalf of and for MARMOSIM the addendum to the credit facility agreement.

APRIL 19, 2010. Shareholders of Marmosim hold the general meeting and approve: "The increase in competitiveness of SC MARMOSIM SA by retooling the Dealul lui Ionel quarry, of the Ruşchiţa perimeter, located in the commune of Rusca-Montană, county of Caraş Severin, with high performance equipment", as part of the Sectoral Operational Program "The Increase in Economic Competitiveness" (POS CCE) 2007-2013, Priority Axis 1 - an innovative and efficient production system".

The following shareholders were present: Titan Mar SA (whose chairman is none other than the wife of Adriean Videanu, Mioriţa Videanu), which holds 96%, Vasile Opriţa, who holds 0.0096%, Ştefan Velniceru, who holds 0.009% and Nicolae Pârvu who holds 0.0006%.

This makes it obvious that the investment program financed using European grants, could not have been approved without the vote of the majority shareholder Titan Mar, a company in which Mioriţa Videanu holds 50.0033% and Adriean Videanu holds 49. 9967%.

APRIL 19th, 2010. It"s only on this date that Adriean Videanu, the minister of the Economy sends the European Commissioner for Durable Development, Johannes Hahn, a letter discussing the plan of Marmosim to draw European grants, from the axis that is coordinated by the Ministry of the Economy, which he leads. In the letter, Adriean Videanu urges the European Commissioner to present an opinion on this delicate issue, which is liable to be misinterpreted. The Minister"s action could actually be considered praiseworthy, because he apparently wants to avoid what qualifies as conflict of interest according to European standards.

APRIL 22nd, 2010. It"s just that, on this date, the Ministry of the Economy insists on the so-called intention of "the company"s management", mentioning the following: "The minister of the Economy, Commerce and Business Environment, Adriean Videanu, was informed by the management of Marmosim, the company in which he is a stakeholder, that the company intends to apply for a grant under the POS-CCE program.

Acknowledging this intention, in order to avoid any suspicion or interpretation on this application for European funds and in full transparency towards the European Commission, Minister Videanu has also requested the opinion of the European Commission on the matter".

However, the official notification, makes no mention of the fact that the Videanu spouses had already approved the project to apply for European grant three days earlier, meaning, the intention of the management of Marmosim had become the decision of its shareholder Adriean Videanu. Just as there is no mention of the fact that the minister knew since back in March that the shareholders of the company would approve the project, meaning it was far from being just "an intention of the management".

Under these circumstances, how can one talk about a simple "intention" of the management of the company, three days after it had already been approved by the shareholders?

And why would the minister need a notification from the company"s management, when the project to take a European grant could not be approved without the agreement of his wife and himself?! When did the Videanu family greenlight the project? Did he do it precisely on April 19th, on the same day Adriean Videanu sent a letter to the European commissioner and the project was approved in the general meeting of shareholders?

May 11, 2010. European Commissioner, Johannes Hahn, answers minister Videanu that on principle, his tenure as a minister is incompatible with his position of shareholder in a company applying for European grants. Following the reply of the European official, the minister of the Economy Adriean Videanu announces that Marmosim will cancel its project which was supposed to be financed using European funds.

It is inexplicable to say the least why minister Videanu waited so long to address an inquiry to the European Commission to find out whether his company was entitled to access European grants, only to now be forced to summon a new meeting of shareholders to cancel the vote by which the project was greenlit.