The privatization of the national oil operator, Petrom, bought by OMV in 2006, is considered by the Senate as disadvantageous for the Romanian state. The senatorial commission investigating the privatization demanded new negotiations for the contract and asked the enabled authorities "to establish the legality and, where there's the case, the responsibility for this privatization".
According to the Commission, Petrom was under evaluated, the fiscal regime is a preferential one and the annual dues are to small. In case the report is adopted by the Senate, the Government will have to take it into account, but is not forced to follow the recommendations.
Problems discovered by the Commission:
- Environment: the Romanian state has to pay for the previous pollution of the environment.
- Real estate: the terrain bought by the company is largely under evaluated.
- Debts: the value of Petrom was calculated taking into account its debts, which were later erased, without modifying the price.
- Dues: the level of annual dues paid towards the Romanian state is too small and, according to the contract, will be kept at the same level for ten years.
- Incentives: the Commission finds that maintaining the level of dues at the same level for ten years is an unwarrantable interference in the Romanian economic policy and its budgetary income flows.
- Value: The State officials accepted the value suggested by the Consultant without any documents to support the evaluation, not even for the patrimony, oil price or financial situation.
In other words, the Commission accuses the Consultant - a consortium formed by Credit Swisse First Boston and ING Bank NV, The State Property Office and OMV of having an agreement to under evaluate Petrom.