“I couldn’t sign the contract because it’s missing several clauses, stipulations and annexes,” Diaconecu said after a meeting with representatives of the Economy Ministry.
“It’s a different contract altogether from the one I had agreed to during the privatization procedures,” he added.
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.
“Once it’s clear that this whole thing was an attempt to cover up old frauds… and the so-called winner of the auction never had the money or the intention to become majority shareholder in Oltchim, the government will approve a set of measures to place the company under special administration,” Ponta told reporters.
He said Oltchim’s privatization would be resumed next year, with a “serious” investor.
Russian power producer TISE, which according to Ponta has withdrawn from Oltchim’s privatization race just before the auction held last week, is one of the companies interested in the chemical company.
“TISE could ensure that Oltchim stays operational in the future,” Ponta said.
On Friday, 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.
The winning offer was over ten-fold higher than the minimum price asked by the government, of some EUR4 million.
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=RON4.5175)