The reply of the ASF to BURSA blows apart the official reports of the manager of SIF Banat Crişana

The response of the ASF to BURSA blows apart the official reports of SIF Banat Crişana, because the Financial Oversight Authority (ASF) contradicts the claims made by Bogdan Drăgoi, the CEO of SIF Banat Crişana (SIF 1), in the official documents sent to the Bucharest Stock Exchange (BVB), that he was required to manipulate the NAV when he used "mark-to-market" valuation for the shares of SIF Imobiliare (SIFI) in his portfolio, a contradiction, which, somewhat surprisingly, appears to contradict precisely the letter by which the ASF refuses our request to access a document, which we made based on the Free access to public information.

The case of the SIF Banat Crişana manipulation is already notorious (see the numbered list of articles in the BIBLIOGRAPHICAL NOTE, in the footer), even though the situation has not yet been officially acknowledged by the authorities.

Bogdan Drăgoi, involuntarily admitted the manipulation, and basically has self-denounced, (the proof can be found in article (3)).

Through the Communique of SIF Banat Crişana, of July 30, posted on its own website and on that of the BSE, Drăgoi had the intention to reject the accusation of manipulation which derived from the analyses published by BURSA, but the very communique has provided evidence of the manipulation, and, furthermore, he had the imprudence of showing that he won't shy away from stating falsehoods in public documents he signs.

For that reason, I have become distrustful of his statements and the documents published by the manager of SIF Banat Crişana and I have come to the conclusion that it is not out of the realm of possibility that Bogdan Drăgoi is lying about other things as well.

Since he has repeatedly claimed the distortion of the NAV was required by a certain ASF Address, with the no. SI/DRA 2690.1/1 8.06.2019, we have sought to verify whether he was telling the truth and we have requested the ASF to provide us the Address in question, based on the Law of access to public information (see article (9)).

Even though it has refused to provide us a copy of that Address, the ASF has made some clarifications in its answer which clearly contradict the claims Drăgoi made in the official Reports of SIF Banat Crişana.

• WHO IS LYING? - THE STAKE OF THE ANSWER IS GOING TO JAIL

Currently, (in the absence of the copy of the ASF Address no. SI/DRA 2690.1/1 8.06.2019), we are unable to establish who is lying and who is telling the truth - is it the ASF that is telling the truth and the manager of SIF Banat Crişana is lying, or the other way around?

The situation is created by several documents, but, for clarity, it is enough to mention three of them:

A. The press release of SIF Banat Crişana, of July 30

"Through the address no. SI/DRA no. 2690.1/1 8.06.2019, the Financial Oversight Authority has told the Company that it is unable to exempt SIF Banat-Crişana from the application of the evaluation method stipulated in article 113 letter a, point 2 of the ASF Regulation no. 9/2014, meaning the reference price for the day the calculation is being performed for, as well as the fact that it will investigate the aspects concerning a potential application of the applicable dispositions when it comes to market abuse".

(Signed: Bogdan Drăgoi, chairman of SIF Banat Crişana)

B. The response of the ASF to the request submitted by BURSA:

"As far as the address of the ASF no. SI/DRA 2690.1/18.06.2019 sent to SIF BANAT CRIŞANA S.A., we mention that, in relation to the facts you mentioned in your address from the current report posted by the company on July 30, 2020, the messages sent by the ASF clarify the fact that SIF Banat Crişana S.A. cannot be exempted from the application of the evaluation method stipulated in art. 113 letter a) point 2 of the ASF regulation no. 9/2014, if the liquidity requirements for the activation of that provision are met".

(Signed: Gabriel Grădinescu, vice-president of the ASF)

C. STATUS OF ASSETS and debts of SIF Banat-Crişana on May, 29, 2020" - appendix no. 16 :

"SIF Imobiliare PLC is an issuer listed on the BSE on the AeRO market (traded with the symbol SIFI), but with a very low liquidity".

(Signed: SIF Banat Crişana; Depository certificate: Romanian Commercial Bank)

In quote A., Drăgoi says that the ASF has forced him to evaluate SIF Imobiliare by marking-to-market (but does not add the clarification from the response of the ASF, that that obligation is dependent on the company meeting the liquidity requirements).

In quote B., Grădinescu states that, on the contrary, the obligation is generally applicable, but only if SIF Imobiliare meets the liquidity requirements for that (a paragraph omitted by Drăgoi).

In quote C., SIF Banat Crişana and BCR sign the statement that SIF Imobiliare has a very low liquidity.

In other words, SIF Banat Crişana (Drăgoi) explicitly states that SIF Imobiliare does not meet the liquidity requirements, so, (if Grădinescu - ASF aren't lying), Drăgoi's statement in Quote A is a lie: the ASF did not require the manager of SIF Banat Crişana to evaluate SIF by marking to market and Drăgoi is lying.

I repeat, at this stage of examining the facts, documents and statements contained in official paperwork, in the absence of the ASF address with the no. SI/DRA no. 2690.1/1 8.06.2019, we can't establish with certainty who is lying - Drăgoi or the ASF.

But it is certain that one of them is lying.

Is Drăgoi the liar or was he in cahoots with the ASF, when he began the market manipulation?

The answer to that question leads to a potential criminal sentence.

• THE ASF IS HIDING THE PROOF OF THE LIE

Given the explosive information from the response of the ASF addressed to BURSA, which blows up the Official Reports of the manager of SIF Banat Crişana, the fact that it is refusing to answer our request to provide us with a copy of ASF Address no. SI/DRA 2690.1/1 8.06.2019, has taken a back seat, in first instance.

But now, after analyzing the consequences of the response of the ASF, confronting that information with the document requested by BURSA becomes crucial.

I want to clarify that the document is not necessary to prove the manipulation of the NAV that has the manager of SIF Banat Crişana, because that has already been proven in the articles published in BURSA.

The document from the ASF is necessary to establish whether that manipulation was started in complicity with the ASF or not.

That is the reason why we are not going to stop the actions to get that document, because it is obvious that regardless of how the ASF has classified that document so that it can claim that it is not of public interest, the public's interest in it comes from the entire stock market community.

The interest of the stock market in the ASF address no. SI/DRA 2690.1/1 8.06.2019 nu is not caused by the mere curiosity in meddling in the internal and esoteric affairs of this institution called the Financial Oversight Authority, but investment decisions, the fate of large amounts of money depends on that information.

To say nothing of the fate of Bogdan Drăgoi and Gabriel Grădinescu, whose names I mention off the top of my head.

• POST SCRIPTUM

We have found that our readers' skill when it comes to legal approaches exceeds ours, because the procedure for requesting the document from the ASF has been explained to us by a commenter, who clearly indicated to us Appendix 4 of Law no. 544/2001 concerning information to information of public interest.

That is why, if you know how we should proceed in order to successfully get a copy of the ASF Address no. SI/DRA 2690.1/1 of June 08, 2019, I hereby urge you to post your ideas in the comment section.

So if we manage to get it, then it will be a collective success and I will offer a bottle of champagne for everybody.

Mind you, I said one!

• BIBLIOGRAPHICAL NOTE

(1) "SIF Imobiliare - un caz care ilustrează dezmembrarea pieţei noastre de capital"/BURSA / 30 iulie;

A case that illustrates the dismantling of our stock market BURSA July 30

(2) "Replica SIF Banat Crişana poate fi suspectată de intenţia manipulării pieţei; Valoarea Activului Net este manipulată cu bună ştiinţă"/BURSA / 04 august;

The response of SIF Banat Crişana can be suspected of the intention of market manipulation; The NAV is being manipulated knowingly; BURSA August 04

(3) "Preşedintele SIF Banat Crişana Bogdan Drăgoi se autodenunţă pentru manipularea pieţei"/BURSA / 06 august;

SIF Banat Crişana chairman Bogdan Drăgoi self-denouncing on market manipulation BURSA August 06

(4) "Manipularea de la SIF Banat Crişana a fost intenţionată"/BURSA / 10 august;

"The manipulation at SIF Banat Crişana was deliberate" BURSA August 10

(5) "Răspunsuri ale instituţiilor pieţei la solicitarea BURSA să ia poziţie faţă de manipularea de la SIF Banat Crişana"/BURSA / 12 august;

Responses from the market institutions to the request by BURSA to take a stand on the manipulation at SIF Banat Crişana" BURSA/ August 12

(6) "Poziţia Asociaţiei Brokerilor faţă de manipularea de la SIF Banat Crişana"/BURSA/14 august;

The position of the Association of Brokers on the manipulation at SIF Banat Crişana BURSA August 14

(7) "ASF nu ia nicio măsură să oprească manipularea; cifrele manipulate de SIF Banat Crişana continuă să fie afişate public de BVB şi AAF"/BURSA/ 14 august:

The ASF isn't doing anything to stop the manipulation; the figures manipulated by SIF Banat Crişana are still being displayed by the BSE and ASF" BURSA August 14

(8) "Performanţa SIF Banat Crisana pe luna iulie este negativă (minus 9,3 milioane de euro), dar administratorul raportează la BVB creşterea VAN"/BURSA/15 august;

The performance of SIF Banat Crisana in July is negative (-9.3 million Euros), but its manager is reporting on the BSE a NAV increase BURSA August 15

(9) "PURTĂTOR DE CUVÂNT, FĂRĂ CUVÂNT/ ASF - prima zi, credibilitate de 100%" / BURSA / 15 octombrie;

SPOKESPERSON DIDN'T KEEP THEIR WORD/ ASF - first day, 100% credibility" BURSA October 15

(10) "ASF has officially responded to BURSA: We will not give you the document you have requested"/BURSA / BURSA October 16.

And so on.