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Economics

DA DEMANDS TO STOP PRIVATIZATION OF STATE COMPANIES

19 octomber, 2018
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The "Demnitate si Adevar" [DA, "Dignity and Justice"] Party urges the Plahotniuc-Filip Government to stop the practice of suspicious privatizations and concession of companies, which are strategically important for the country's economy.

The oppositional party's statement says that the authorities intend to sell 85% of the Northern Bus Station at a price of less than 18 million lei, though the price of state company assets accounts for less than 37 million lei, while the annual profit - not less than half-a-million lei.

"Though the accumulated debts account for around 7 billion lei, half of them are of unclear origin: in such conditions it is absolutely unclear the need of de-nationalizing the profitable enterprise. As for the potential privatization of the Tutun-CTC there are even more questions. The largest combine with assets worth 390 million lei is going to be sold at only 165 million. In 2017, the Tutun-CTC got 13-million profit and the company is efficiently dealing with debts, reducing these to 18 million from 30 million lei only over a year. In such a situation the reason of de-nationalization is unclear, while the proposed price is too low. For comparison, the Barza Alba is sold at a price twice lower than the Tutun-CTC, though the Barza Alba assets are approximately 30 million lower", the document authors say.

DA representatives expressed concern about the authorities' intention to conduct such a contradictory privatization policy.

"We are indignant about the complete absence of transparency and justification of the privatization, organized by the current criminal regime. The so-called auctions and contests, directed to the de-nationalization of the public property are doubtful and do not contribute to the development of enterprises. On contrary, they are artificially brought to bankruptcy for making large-scale embezzlements in the run-up to elections", oppositionists maintain.

According to them, the authorities, feeling the approaching failure, are trying to maximally use criminal schemes for rapid enrichment.

"The DA Party is firmly and responsibly stating that after the regime falls, a all the doubtful transactions, aimed at destroying state enterprises, will be revised", the declaration says.

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