State-owned electricity producer Complexul Energetic Oltenia – CEO’s interim general manager Laurentiu Ciobotarica was held on Wednesday evening on abuse of office charges.

The anticorruption prosecutors accused him of illegally paying RON 120,000 (EUR 26,800) from the company’s funds to another member of the company’s executive board to determine him to resign.

The targeted executive was the company’s energy division director Aurel Medintu, according to sources familiar with the investigation, quoted by News.ro.

Laurentiu Ciobotarica, was named interim general manager of Complexul Energetic Oltenia in December 2015, after the previous director, Laurentiu Ciurel, was revoked.

Complexul Energetic Oltenia is one of the biggest electricity producers in Romania. It operates three coal-powered power plants in the Oltenia region. The company has been at the center of many scandals in recent years while its financial results have gotten worse.

In 2014, the company had losses of EUR 155 million and a turnover of EUR 572 million. The losses increased to over EUR 201 million in 2015.

The state holds 77% of the company’s shares through the Energy Ministry while investment fund Fondul Proprietatea holds the remaining 23%. On May 20, the shareholders will discuss a restructuring plan for the next four years, which aims at making it more efficient and bringing it to profit. The plan will also include layoffs. The company had over 18,400 employees in 2014.

Romanian energy producer to lay off 5,000 employees by 2020

Romanian miners end 300 km protest march, go to Govt. for talks

editor@romania-insider.com