about us | newsletter | contact | archive | members area
Nicolae Ghibu, Certsign
Regulations will come gradually and will cover all areas»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

Fondul Proprietatea concerned about draft proposing exemption of state-owned companies from corporate governance

Fondul Proprietatea expresses significant concerns about a new legal draft, currently discussed in the Commitees of the Chamber of Deputies, which proposes the exemption of 100 major state-owned companies (SOEs) from the enforcement of corporate governance legislation currently in force. Some of the most valuable Romanian SOEs, operating in vital sectors, are targeted, including: Hidroelectrica, Nuclearelectrica, Bucharest Airports

2018-09-24 14:06:02

Fondul Proprietatea is appalled that the amendments are largely the same as those declared unconstitutional by the Constitutional Court in February 2018. The plenum of the Chamber of Deputies may vote on the issue this week.

If adopted in its current form, the exemption of 100 state-owned companies from corporate governance would represent a major step back in terms of economic credibility, according to FP representatives.

Commenting on the particularly severe implications of this proposal, Johan Meyer, CEO of Franklin Templeton Investments Limited and Portfolio Manager of Fondul Proprietatea said: "State-owned companies are owned by all Romanians who are perfectly entitled to have access to information on their situation and evolution. If corporate governance exemptions are adopted for so many state-owned companies, there will no longer be any obligation for them to periodically report any financial or operational information. We will most likely enter an era of total darkness in which we will no longer know anything about the performance of the SOEs, apart from learning a year or two down the road that some of the most successful Romanian companies, will then be on the verge of insolvency and we would be left wondering what happened in the meantime. This would be similar to letting Ali Baba's 40 thieves into a bank vault, switching off the lights and the alarm system and then pretending to be surprised at the outcome. I am amazed that such a detrimental action would even be considered in view of Romania's objective of becoming an Emerging Market country."

Fondul Proprietatea urges the Parliament to carefully consider the major negative impact of these exemptions and decide against adopting this infamous black-list of companies excepted from corporate governance.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  998 Views
Daily Info
Radiocom gets EIB funds for the digitalisation of Romania's terrestrial broadcasting infrastructure

The European Investment Bank (EIB) is lending 9.78 million Euro to Romanian public company Societatea Nationala de Radiocomunicatii SA (Radiocom) to partially finance the digi...

Companies are investing 12 per cent of their annual turnover for business digitalization, ARIES study shows

Companies in the Northwest region of Romania invest annually, on average, 12 per cent of the turnover for digitalization. The share of current turnover due to digitalization i...

CE Oltenia denies media allegations, says it has no state debts

State-owned company CE Oltenia denies the allegations in the local media, according to which it has debts to the state budget worth over 100 million Euro, a press release show...

Valentin Radu receives new mandate as chair of Electrica's board of directors

Electrica's board of directors decided to appoint Valentin Radu as chair of the board of directors for a mandate of one year, starting with 12 December 2018.

Christmas leads to material implications for retail and office market players, says Colliers

December is a time for Romania to score positive results for sales at supermarkets, hypermarkets or discounters as well as for gifts, offering generous returns for retailers i...

 
 
   
advertising

advertising

advertising

More on News
President Iohannis urges Romanians to be more united, stay involved in modernizing Romania

Romania's President Klaus Iohannis urged Romanians in France to be more united and stay involved as much as they are now in helping modernise Romania.

Catrina, MCSI: Romania is ready to roll up its sleeves and work during the presidency of the EU Council

Romania is ready to roll up its sleeves and work during the presidency of the Council of the European Union (EU), said Maria Manuela Catrina, State Secretary at the Ministr...

Two billion youth risk of being left behind in the Fourth Industrial Revolution workforce, says Deloitte

Almost two billion youth worldwide risk of being left behind in the Fourth Industrial Revolution (Industry 4.0) workforce, which is changing at an increasingly rapid pace a...

ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.

Revolut gets European banking license

Fintech startup Revolut is now officially a bank. While the startup initially expected to get its European banking license during the first half of 2018, the company has fi...

The Romanian labour market needs a well-thought approach, says FIC

The Foreign Investors Council (FIC) has signaled in the past 2-3 years that its members are anticipating increasing strains on the Romanian labour market because starting w...

EBRD cuts economic growth forecast for Romania

Romania's economy will grow by 4.2 per cent this year and by 3.6 per cent in 2019, according to the most recent forecast released by the European Bank for Reconstruction an...