The membership of the board of administrators, which together with the private management should prevent political influence and ensure the company performs well, is in fact the main concern, according to the Government’s latest letter of intent to the International Monetary Fund (IMF).
The letter says the new managers and boards should have been selected by the end of April 2012; despite this, the process has seen substantial delays. CE Oltenia is the only company with fresh management, although the Government is worried about the board members’ capability.
To address this issue, the authorities have pledged to reevaluate the appointments at CE Oltenia and use only “credible and independent” recruitment companies, assuring the Fund that only well-checked candidates will be chosen.
The Government has also put forward a new calendar, according to which the new board members and management will be appointed to Oltchim, Hidroelectrica and Electrica Furnizare by the end of June. The new board of Nuclearelectrica, Romgaz and CE Oltenia will be put together by the end of September at the latest, with the top managers to follow by the end of October. At Transgaz, the board and management will be selected by the end of the year, under the new calendar.
In the letter, the Government states that the restructuring program’s credibility in the eyes of the public and potential investors would be undermined, if it were to proceed otherwise. Every appointment will be made public, the Executive also says.
The letter of intent was approved by the Government after the agreement review in April-May.