According to trade union leader Corneliu Cernev, Oltchim employees were informed about Monday’s talks with the Economy Ministry and subsequently decided to resume protests for an undetermined period of time.
“Wages have not been paid for August, production is halted, nothing is happening and we do not have much hope for the better. We have to start work, production, or tension will mount every day,” Cernev added.
He also said Monday’s talks at the Economy Ministry “lacked substance,” and authorities make contradictory statements.
On Friday, politician and TV station owner Dan Diaconescu won a sealed-bid auction for the majority stake in Oltchim, after bidding 203.14 million lei (EUR45 million). The politician outbid Germany’s PCC SE and local businessman Stefan Vuza.
Diaconescu Monday refused to sign the contract for the purchase of a 54.86% stake in Oltchim, saying the deal he was presented with was different from the one included in the auction documentation. Diaconescu didn’t say when the contract would be signed. According to the privatization calendar, the deal must be signed within 10 days after the auction procedures.
Diaconescu’s refusal stirred a wave of responses from Romanian officials, including Prime Minister Victor Ponta, who said the politician doesn’t have the necessary funds to pay for the shares.
Oltchim’s privatization is prerequisite for the disbursement of further installments of a EUR3.6 billion loan agreement signed with the International Monetary Fund.
The chemical company reported losses of RON188.2 million (EUR41.7 million) in the first half of 2012, more than double on the year. The company has total debts worth EUR700 million. (EUR1=RON4.5144)