Conferința BURSA - Dezvoltarea Romaniei 2018
BURSA 18.10.2017

ADINA ARDELEANU (translated by Cosmin Ghidoveanu)
mărește imaginea
     * The management of the company accepted two applications that were sent in late, for the elections of October 26th, claiming they were submitted "within reasonable delays"
     * "I think that we are embarrassing ourselves, by the mere fact that we were able to interpret the law in such a way", said Ovidiu Demetrescu
     * "Demetrescu: "ASF and BVB should react, in the case of Electrica, if they had a management with a free spirit"
       The directors of "Electrica" (EL) violated the law when accepting the applications backed by the government for the elections of the new management, recorded eight minutes after the deadline from the convening notice, claiming they were submitted "within a reasonable delay", says Ovidiu Demetrescu, the president of the Romanian Association for Good Management (Asociația Română de Bună Administrare - ARBA).
     He raised a warning about the return to the practice of political appointments in state-owned companies and the failure to honor the promises from the prospectus for the listing of the company.
     In his opinion, the Financial Oversight Authority (ASF), the regulator of the stock market, needs to issue a verdict in this case.
     On Friday, Electrica announced that there are nine candidates who submitted applications for the elections of the Board of Directors, aside from the current ones. The nine applications that have been accepted are Doina Elena Dascălu and Constantin Ciprian lacob. The candidacy of Alexandru Botez and of Gabriel Dumitrașcu, the former head of the Energy privatizations department, which were also submitted after the deadline were not accepted.
     "The situation at Electrica seems unprecedented to me", said Ovidiu Demetrescu, who added: "We are talking about a listed company, where are taking place a completely illegal intervention and interpretation of the law by the Board of Electrica. According to the law, there is no «reasonable delay». When there is a deadline set in the convening notice, it is set in stone».
     If one goes to the train station at 12:10, and the train leaves at 12:00, we can't just hop on board as the train is running".
     He also mentioned the attempt to appoint politically-affiliated managers in state owned companies: "And here we are, after the example of Electrica, we are no longer referring to those companies in which the state is a 100% shareholder. We are now dealing with a listed company, in which the state holds less than 30% of these shares. With that stake, the government should be a minority shareholder, but it is the biggest shareholder. Thus, at Electrica, the state ends up having the power of a majority shareholder, because in the General Shareholder Meeting we have generally seen a quorum of 70-75%, in which the holding of the state represents a very clear majority".
     Gabriel Dumitrașcu criticized the intention to politicize the management of Electrica and notified the ASF about the failure to comply with the deadline set in the he convening notice for submitting new applications for the new board. Mr. Demetrescu commented: "At this time, through the action and the voice of Mr. Gabriel Dumitrașcu once again the issue of the politicizing of companies in the portfolio of the state has appeared, especially the ones in the energy sector, and we think that this does not bode well.
     At a certain time, Gabriel Dumitrașcu was the head of the privatizations department in the Ministry of Energy. At the time, one of the promises that Romania made was to depoliticize the management of companies and to move forward with good corporate governance. That's where the selection of independent managers began, in small steps.
     Today we are seeing that this promise has been scrapped and we are returning to old practices to politicize management, which I don't think will yield the expected results".
     Ovidiu Demetrescu stressed that Electrica is listed both in Bucharest and London, and in the listing prospectus, the company made some promises: "One of the most important promises, which was given a lot of weight at the time of the IPO, was the implementation of corporate governance.
     Through politicization, we are doing nothing else than violate the provisions of the prospectus, and somehow, try to cheat the investors who bought shares based on the prospectus presented by the company.
     We are not allowed to do that and I strongly believe that the Financial Oversight Authority needs to state its opinion on the compliance with the law in this case.
     It is clearly a matter of failure to comply with the law and good corporate governance.
     If the delay is accepted for some applicants, then all applications should be accepted. If not, the company will have to issue a new convening notice and hold the General Shareholder Meeting at a subsequent date".
     When asked why he believed that Electrica accepted the delayed candidacies, when it could have held the elections in another General Shareholder Meeting, Ovidiu Demetrescu said: "In my opinion, there are two possible answers. One reason would be incompetence and I find it very hard to believe that the people who lead Electrica do not know the law and were unable to consult with their legal team, who could have told them that something like that was not in compliance with the law.
     They probably answered to some political pressure. That is a suspicion. I think that they would be the most qualified to say why they acted the way they did. But it is obvious they broke the law. There is no derogation, within the meaning of the law, from a deadline. There is no stock market in the world that something like this has happened. Deadlines are very strict. I think that we are being embarrassed, even by the mere fact that we could even consider such an interpretation of a law.
     We need to have professionals on the Boards of Directors, in full knowledge of the law and who ask their legal advisors when they don't know something.
     Also, we need to look at people and especially at their ethics and integrity.
     Perhaps we should have an independent body that can say whether a person is qualified in terms of ethics and integrity.
     I know that at one time, there was an initiative from Electrica together with Transparency International, to make all the processes more transparent, an «integrity warning».
     Also, I think that the Ministry of Energy should analyze the profiles of the candidates it has proposed, compared to the needs of the company".
     Mr. Demetrescu addsed that even though the ASF has a management politically appointed by the parliament, it is an institution that has some regulations according to which it operates: "The management of the ASF needs to have a perfectly professional behavior that fits the institution it is in charge of. Even though the bosses of the ASF are appointed by a party, they need to have an independent and professional behavior when it comes to the capital market that they are regulating.
     We are waiting for the answer of the ASF, as well as that of the Ministry of Energy".
     Ovidiu Demtrescu thinks that the BSE should also react, in the case of Electrica, "if it had a management with a free spirit".
     In the opinion of the president of ARBA, the election of a new management at Electrica, in the General Shareholder Meeting, would have negative consequences, because it could go as far as the decision being invalidated in court, which would lead to the company losing its credibility and subsequently, investors' confidence.
     Mr. Demetrescu thinks that major institutional investors in Electrica should take a stance on the compliance with corporate governance and the law, if they want the company to perform.
     ARBA is a non-profit organization which plans to promote the position of administrator, member on the Board of Directors/Supervisory Board, Directorate or other management structures.
     The mission of ARBA is to build and develop a Center for Excellence which would create and promote responsible and ethical business standards, for the benefit of the business community, as well as of the overall Romanian society. 

     * Răzvan Nicolescu: "Companies shouldn't be changed into appendixes or political party structures"
     Former energy minister expressed concern over the situation of political appointments in state-owned companies, after the BURSA newspaper reported that the state was late in submitting two applications for the new management of Electrica, which were accepted, while the rest of the nominations were rejected.
     Răzvan Nicolescu told "BURSA" the following: "I am concerned over the quality of the appointments in state owned companies. State owned companies are and have to remain the property of the Romanian state. They mustn't be turned into appendixes or political party structures. Romania can't afford to go backwards by many years!".
     * The ASF told Gabriel Dumitrașcu that he would review the situation at Electrica
     The Financial Oversight Authority (ASF) is analyzing the situation at Electrica, upon notification from Gabriel Dumitrașcu, according to a reply that was sent to him.
     Gabriel Dumitrașcu criticized the intention of politicizing the management of Electrica and notified the ASF about the violation of the deadline from the convening notice for the submission of applications for the new management, by the Romanian state.
     Gabriel Dumitrașcu wrote on his Facebook page: "My respect for the ASF !
     A few minutes ago I received the following message:
     Concerning your message and the aspects reported through Facebook, as well as through the complaint sent directly to the ASF, they are being investigated, and upon the completion of that probe the appropriate actions will be taken. Thank you».
     Thank the ASF for the quick reaction.
     As I have already said in the previous messages, I trust the authorities of the state! The slip-ups, which sometimes happen, are caused by the incompetent people or by mistakes".
     * Alexandru Botez: "All of the people who committed these transgressions need to go!"
     Alexandru Botez thinks that the rejection of his application for the elections for the Board of Directors of "Electrica" represents an abuse and that he will use all the legal avenues to get justice, and demands that all those who have committed abuse should quickly resign.
     He made the following statement yesterday: "I officially saw that they have excluded me from the list of candidates. This is an abuse! Things won't stay this way! I will use all the legal avenues to do justice! An organizations without principles and rules is an organizations that will collapse quickly! No one is above rules and the law. All those who placed themselves above the law and have committed this abuse must leave quickly from the positions they hold!".


Readers' comments    [ add a comment ] 
Trimite părerea ta.
Nume (maxim 50 caractere)
E-mail (optional)
Titlu (maxim 50 caractere)
Prin trimiterea opiniei ne confirmați că ați citit regulamentul de mai sus și că vă asumați prevederile sale !
Aceeasi sectiune (English Section)
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
     * Rulaj de 47 milioane de lei, peste media anului
     Piața principală a Bursei de Valori București (BVB) a încheiat ședința de tranzacționare de joi preponderent în teritoriul pozitiv, opt dintre...  click să citești tot articolul
     * Scădere de 0,53% pentru BET-NG
     Volumul de tranzacționare înregistrat în ședința de la mijlocul săptămânii a Bursei de Valori București (BVB) a fost de 33,45 milioane de lei, dintre care...  click să citești tot articolul
     Bursele din Europa au urcat ieri, pe fondul câștigurilor din sectorul materiilor prime.  click să citești tot articolul
     * Toți indicii bursieri au închis în creștere
     * Tranzacții cu aproape 3% din MedLife, efectuate pe piața "deal"
     Lichiditatea înregistrată în ședința de tranzacționare de ieri la...  click să citești tot articolul
     Piețele europene au urmat un curs mixt ieri, după ce administrația americană a decis să impună taxe vamale de 10% pe importuri chinezești de 200 de miliarde de dolari.  click să citești tot articolul
     * Rulaj de 42 milioane de lei, în apropierea mediei acestui an
     Cinci dintre cei nouă indici ai Bursei de Valori București (BVB) au încheiat prima ședință de tranzacționare a săptămânii ușor în...  click să citești tot articolul
Cotații Internaționale

Curs Valutar

Curs valabil din data de 21 septembrie 2018
1 Dolar australian...
1 Leva bulgărească...
1 Dolar canadian....
1 Franc elvețian...
1 Coroană cehă...
1 Coroană daneză...
1 Liră egipteană...
1 Euro...
1 Liră sterlină...
100 Forinți maghiari...
100 Yeni japonezi...
1 Leu moldovenesc...
1 Coroană norvegiană...
1 Zlot polonez...
1 Rublă rusească...
1 Coroană suedeză...
1 Liră turcească...
1 Dolar S.U.A...
1 Rand sud-african...
1 Real brazilian...
1 Renminbi chinezesc...
1 Rupie indiană...
100 Woni sud-coreeni...
1 Peso mexican...
1 Dolar neo-zeelandez...
1 Dinar sârbesc...
1 Hryvna ucraineană...
1 Dirham emirate arabe...
1 Kuna croată...
1 Bahtul thailandez...
1 Gram aur...
1 DST...
click aici pentru cursurile pieței valutare - istoric
English Section
     Globalization has also brought with it an unpleasant effect: cross-border corruption. According to the intermediate report Exporting Corruption for the year 2018, a document drawn up by the organization Transparency International, there is a practice among powerful foreign companies of bribing the public servants of another country when they want to enter the local market.  click here to read the entire article
     The offshore law will once again reach the Commission, in one or two weeks, according to Mr. Virgil Popescu, the vice-president of the Commission for Industries and Services, the Chamber of Deputies.  click here to read the entire article
     * "There have been attempts for the prefect to be made a scapegoat"
     * "The support from the government wasn't much to talk about, so if it were withdrawn, there wouldn't be much of a difference"
     Bucharest's General Mayor was heard on Tuesday as a witness by the prosecutors of the General Prosecutor's Office in the case concerning the events which happened on August 10th in Victoriei Square. Before going into the Prosecutors' Department building, Gabriela Firea said she stood by her statements made immediately after the meeting of the National Executive Committee of the PSD and said: "I always speak based on facts, not just in this particular case, but in other areas as well, including politics. I will be answering to the questions of the prosecutor who contacted me and told me I was supposed to be heard in the case which is now being investigated concerning the intervention of the gendarmes on August 10th".  click here to read the entire article
     The particularly hot weather and the conditions of extreme draught in Europe have brought to light terrible warnings from the past.
     Associated Press recently wrote that in the riverbed of the Elba in the Czech Republic have resurfaced the giant stones known as "the hunger stones", which have indicated over time, the coming of hard times.
     "When you see me, weep", is written on one of these stones, which seems to be considered the best hydrological benchmark in Europe. The inscription is in German and dates back to 1616.
     A detailed analysis of the stone inscriptions was published by the Czech researchers in the "Climate of the Past" magazine in 2013 (author's note: "Droughts in the Czech Lands, 1090-2012 AD", April 2013).  click here to read the entire article
     * Claudiu Cazacu, XTB România: "United States companies have posted results that even exceeded the analysts' expectations, which were already for 2-figure profit increases"
     * Liviu Moldovan, financial analyst: "Currently, investors have a «blind» faith in the stock markets, in general, and in that of the US, in particular"
     For the first time in the history of the American markets, Nasdaq has surpassed the psychological level of 8,000 points.
     In the August 27 session, the Standard & Poor's 500 (S&P 500) index also reached an all time high, ending the trading session at almost 2,897 points.  click here to read the entire article
     The capital market was marked, last week, by a number of controversial statements tied to the listing of Digi Communications, starting from the statements made recently by Darius Vâlcov, state advisor on the team of the prime-minister, who wrote on his Facebook page that he has asked the Financial Oversight Authority (ASF) if it was true that the book value of the Digi shares was 1 leu and 8 bani, and pointed out that at the time of the IPO, the shares of Digi were listed at 40 lei and are currently priced at 28 lei (30% down) and keep going down.  click here to read the entire article
     Angela Merkel inaugurated the highway in December 2005, less than a month after she became chancellor of Germany.
     The highway was built on the territory of the former East Germany, connects Lubeck and the Polish border, after the junction with A11, and goes through the electoral precinct of chancellor Merkel.  click here to read the entire article
     The Romanian government has lost over 8 billion lei, between 2006-2018, following the failure to update the royalties paid by the oil and gas companies, says Gigi Dragomir, the president of the National Mineral Resources Agency (ANRM), in a report sent to the prime-minister.  click here to read the entire article
      * (Interview with Radu Grațian Ghețea, President - CEO of CEC Bank)
     In banking there are many risks and that is why banks need to be flexible and have as diverse an exposure as possible, which take the market circumstances at the time into account, says Radu Grațian Ghețea, President and CEO of CEC Bank. He told us, in an interview: "We have to adapt to what is happening in the market and we need to do things in such a way that the economic activity and that of the bank both function properly. If we're going with the idea that we want to eliminate every risk, then we'll just stop doing anything. For instance, we have been and we are a bank which heavily funds agriculture, which also means animal husbandry. A few years ago, our exposure to the aviculture sector was rather significant, and when the avian flu came we had to cover some non-performing loans on that segment. Now that the avian flu is done, we are facing the swine flu. What should we do, stop lending?"
     Reporter: Lately, there have been opinions from some experts who are saying that there is a wave of non-performing loans of the ones taken out by the First Home Program. What is your comment on these statements?  click here to read the entire article
     * (Interview with Laszlo Diosi, OTP Bank CEO)
     Reporter: How would you describe the banking market, at the present time?
     Laszlo Diosi: Even though there are plenty of challenges, there are also many opportunities for the Romanian banking system. The lessons of the financial-economic crisis have resulted in a better regulated framework, stable, transparent and predictable. The guiding line of the policies developed by the authorities that are qualified, but in particular by those with a regulatory and oversight role has been characterized by a balance between profitability and systemic safety.
     But there is no shortage of challenges. We are talking here about challenges which concern the digitalization of the banking system and the national and international legislation. The entire system needs to align with complex and sometimes confused regulations.
     Recorded by Emilia Olescu  click here to read the entire article
     * (Interview with Dan Paul, the president of the Association of Brokers)
     The management of the Bucharest Stock Exchange (BVB) needs to find out from brokers whether Romania truly needs a derivatives market, says Dan Paul, the president of the Association of Brokers, who was kind enough to grant BURSA an interview.  click here to read the entire article
     Now we know why prime-minister Dăncilă was in a hurry to announce the activity report for the first six months at the helm of the Romanian government: the nice tale of the hike of pensions and salaries wasn't supposed to be overshadowed by the evolution of budget expenses, whose increase has led the deficit of the consolidated general budget to 1.61% of the GDP, from 0.88% after the first five months of the year.  click here to read the entire article
     The public offer started by Vimetco and Conef for a stake of at most 53.77% of the shares of Alro Slatina (Alro) has been unsuccessful, as the issuer announced that due to the unfavorable market conditions, the shareholders, company and underwriters couldn't agree on a price for the volume of 383.79 million shares put up for sale.  click here to read the entire article
     * According to Eurostat, Romania has the biggest governmental deficit in the EU
     The hike of some taxes, in the near future, is unavoidable, according to economic analyst Aurelian Dochia.
     His statement comes as, in the first quarter, the government's deficit has seen an increase over the last quarter of 2017, according to data by the European Statistics Office (Eurostat).  click here to read the entire article
Russia World Cup
     The final tournament of the World Football Cup will end with a gala representation, the duel between Croatia and France. France, the with the most expensive players in the tournament, has met the expectations, Croatia is the biggest surprise the of the competition.  click here to read the entire article