Economics

GOVERNMENT DEALS WITH SOLVING PROBLEMS AT STATE ENTERPRISE "MOLDOVAN RAILWAYS" - ANDREI SIPINU

19 april, 2024

“The government is currently dealing with solving problems at the state enterprise "Moldovan Railways," the Minister of Infrastructure and Regional Development, Andrei Spinu stated.

During a program on TV8 channel, he said on Thursday evening that the Cabinet of Ministers had to seek funds to pay off wage arrears after the unexpected resignation of the company's director Oleg Tofilat. Spinu denied Tofilat’s statements that because of rumors that emerged about his replacement as director of the enterprise, banks allegedly refused to grant a loan to Moldovan Railways because they doubted whether it was possible to conduct financial transactions with the company.

Spinu informed that he discussed the situation at the company with its director at the beginning of the year and suggested optimization and staff reduction.

"We came to the conclusion that the situation is not good. The Moldovan Railways cannot pay salaries to employees - it is 4-5 thousand lei, but it gives bonuses to the employees of the central office... Nobody gives bonuses when the company cannot pay salaries... We agreed to look for solutions, but a couple weeks later Tofilat announced his resignation. He had not even communicated it beforehand. With his resignation, Tofilat blocked the work for several weeks, including the payment of salaries, as there was no one to sign the document," the minister said.

According to him, a temporary solution has been found to pay part of the wage debts for December last year.

"The state-owned company Loteria Nationala a Moldovei (National Lottery of Moldova) has granted a loan of 35 million lei to the Moldovan Railways to pay wage arrears. There is a legal mechanism between state companies. By decisions of the councils and the State Property Agency, a loan can be issued. This money was given to cover one month's salaries. We promised in February that by the end of March we would cover the debts for 2023. We have practically done it, we have 2-3 million lei left to pay. This week, the new acting head of the company has already proposed a new crisis plan and has taken the necessary measures to reduce expenses," Spinu emphasized, noting that "the company can increase the volume of cargo transportation and will be able to pay salaries."

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