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“I can’t wait for someone to hold me responsible for the cleaning. I’ve waited long enough and had every good will to come to a legal agreement. It seems that someone doesn’t want that and has other interests. Being healthy. Let’s get down to business. to the play. with a joke, “writes Clotilde Armand, in a post on Facebook.
Ziare.com reveals how this situation came about and who is, in fact, behind the Romprest company. The Court of Auditors determined, in 2016, that the City Council makes illegal payments to the Romprest company. A company behind which are companies from Canada and Luxembourg.
According to Confidas data, as of 2013, the company had 260 purchase contracts signed with public institutions, with a total value of 640 million lei.
Armand: Rates have been illegally increased
The Romprest-Clotilde Armand conflict has escalated in the last week and Sector 1 has been filled with untreated street rubbish. On the one hand, Romprest announces to the mayor that it no longer cleans on credit and, until it receives at least part of a debt of 100 million lei, it will not pick up garbage bags. On the other hand, Clotilde Armand alleges that the amounts claimed are for invoices that it considers illegally issued.
In a post on Facebook, the mayor shows that there is a decision of the Court of Accounts that decided that the rates of the sanitation service have been illegally increased, there is still no budget voted and assigned for these bills, it is not possible to make the rectification the cause of a deficit of one billion lei and that there is a file with DNA on the illegal increase in sanitation fees. Additionally, Romprest allegedly billed for services not rendered to the mayor’s office. Everything would have come to light based on the analysis of the GPS devices of the garbage trucks.
Armand announced that these things will be brought to the attention of the investigators and drew attention to the complicity of some City Council officials. “I will return in the next few days and present to the public (but also to prosecutors) how a large company subscribed to public money in Sector 1 recently tried to charge us for overvalued services. So … tens of millions more. Through the complicity of some public officials from the town hall. “
Right of reply: “The invoices were issued legally”
Romprest’s reaction came immediately, in the form of a right of reply. Regarding the legality of the service settlement fees, we consider that this issue cannot be invoked by the Mayor, as a representative of the local Public Authority, and accused the Operator of fault.
In the case of Contracts for the delegation of the management of a public service, the rates are approved by the Authority, in accordance with the contractual provisions, by means of an Additional Law to the Contract, approved by Decision of the City Council. Therefore, the delegated operator is obliged to bill the service based on these legally approved rates, which are in force, “says the health company. Romprest shows that the invoices are issued in full legality.
We also consider that the invocation of the illicit nature of some current acts, which were approved by the Local Authority through the deliberative body, the Sector 1 City Council, and their challenge exceed the contractual framework in which the Operator operates, the subject being competition of the competent institutions in this regard ”, concludes Romprest.
Essential facts
The contract between Romprest and the City Council of Sector 1 was signed, in 2008, for a period of 25 years, during the mandate of Adrian Chiliman (2004-2015). In the 2016-2020 period, the sector was led by Daniel Tudorache. He had previously held, between 2008-2011, the position of Deputy Mayor of Sector 1.
The prices of the services in the contract signed in 2008 were adjusted twice, through additional contracts, voted on by the City Council:
2012: The indices from which the rates of the consumer price indices by economy are indexed to the consumer price indices by branch have been modified;
2019: The prices were changed without any connection to the indices. There are different situations, but in essence there are increases of up to 300% in some operations, especially those with high frequency / incidence, and in other rates there are small decreases. For example, the price of mechanized street washing increased from 9.98 lei to 24.02 lei.
Court of Accounts: illegal payments
The accusations by Mayor Clotilde Armand about the illegal increase in rates are related to a control by the Court of Accounts that ended in November 2016.
The Court of Auditors then determined that the City Council of Sector 1 paid in 2013-2016 the total amount of 94.1 million lei (VAT included), which represent rates indexed based on a consumer price index, different from that foreseen in The contract Initially awarded at auction, modified by an additional act and contrary to the provisions of the tender specifications, interest and penalties are calculated for a total amount of 23.7 million lei.
The Court of Auditors reveals that several provisions of Law 273/2006 on local public finances were violated, as well as other articles of secondary law. The institution decided to record the entire damage, that is, 117 million lei, in the accounting records to take legal measures for its recovery and transfer the recovered amounts to the local budget.
The City Council opens Romprest trials
After the Court of Accounts made the determinations, the Sector 1 City Council initiated, in 2017, several lawsuits. First, in a public procurement litigation, it challenged the provisions of the additional law signed in 2012. The request was rejected, but the City Council initiated extraordinary actions.
Then, the City Council asked the judges to determine that it is illegal to index the service fees and the partial invalidity of the additional law signed in 2012. The City Council of Sector 1 also asked Romprest to return the money paid – 94 million lei and fines of 23.7 million. of lei. In total, 117 million lei.
In April 2018, the Bucharest Court suspended the trial of this case, pending the resolution of another lawsuit also initiated by the Sector 1 City Council. The magistrates must interpret and, if necessary, cancel the provisions of the law additional signed in 2012 that led to higher prices.
The judges decided, in the first phase of the trial, to reject the request of Sector 1. The magistrates did not get to the bottom of the matter, they only found that the City Council did not go through all the stages of renegotiation of the contract before going to court.
The damage increased to 125.4 million lei.
In 2019, the Sector 1 City Council updated the damage situation, because interest has accumulated. It reached 125.4 million lei. This is a damage of 94.1 million lei, to which are added fines of 31.2 million lei.
Who is Romprest
Romprest Service SA is one of the largest sanitation operators in Romaniasi was founded in 2001. Currently, it is owned by several companies, including the Canadian company Detaco (42.6%), Europrest Invest (30%), Premium Management Team (13 , 7%) and the Bucharest National Airport Company (10%) and the US company Firstcom (3.5%).
Former shareholders
Detaco is a Canadian company controlled by millionaire Walter Florian, who passed away in 2019.
In 2014, the press reported that entrepreneurs Radu Budeanu and Dragos Dobrescu became owners of more than 43% of Romprest’s shares through Premium Management Team and Europrest Invest SRL. Recognized members of the “Grupo Mocaco”, the two would have left this company.
In November 2015, Dragos Dobrescu sold the 99.9% stake in Europrest Invest to Europrest’s minority shareholder, Luxembourg-registered company EnergyMixx Europe, reports profit.ro. In September 2020, Radu Budeanu, who owns various media assets including Cancan, ProSport, Gandul, sold his stake to Euroinvest, wrote Ziarul Financiar.
Read also: The business of garbage of millions of euros in the Capital. Who does the sanitation and who are the entrepreneurs behind the companies that sign contracts with the state
Company
With about 2,600 employees, the company has a turnover of 241 million lei and a profit of 23.7 million lei, an increase of 100% over the previous year.
Romprest is currently led by Marian Bogdan Amidi, the CEO being Razvan Duca Ghenoiu. Other administrators of the company: Dinu Stefan Lefter, Marian Magureanu – son of the former director of the SRI Virgil Magureanu, Viorel Tanase and Orlando Valache, on the media reported that he is the henchman of Radu Budeanu and administrator of Cancan TV.
According to Confidas data, as of 2013, the company had 260 purchase contracts signed with public institutions, with a total value of 640 million lei.
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