Prime Minister Ilie Bolojan on Thursday underscored that he will no longer approve the budgets of companies that are recording losses but have no restructuring plans.
"In today's government meeting, I once again drew the attention of the ministers that I will not approve budgets of companies that are recording losses but do not have any restructuring plans, plans to reduce losses incorporated into the budget. Because these plans are included in the directors' management contracts. You are a director, very well, you get your salary, but how do you reduce losses? (...) The ministry, the supervisory authority must request this reduction plan, as the law provides. And the Ministry of Finance will not approve these budgets until it sees the plan. And the plan is included in the management contract," the Prime Minister told Antena 3 CNN private television broadcaster.
He mentioned that there are companies or mayors who have not done their duty and have put the government in a "fait accompli", so that the Executive bears the excessive expenses or "negligence", but he stressed that he will not allow such situations anymore.
"We now have a situation at the Ministry of Transport, in the CFR (Romanian Railway Company) area, where every year - my more experienced colleagues tell me - the same thing happens. They don't have enough money in their budgets for subsidies to CFR Calatori (CFR Passengers branch), for example. CFR Calatori doesn't pay the infrastructure usage fee to CFR Infrastructura (CFR Infrastructure). And that's when the blockages and problems start. People don't get their salaries anymore and so on, generating pressure for the Government to give them some more money. Every year they used to receive a billion, in the fall, in subsidies, to solve these problems. But at the beginning of the year they didn't know what the situation was? We effectively no longer have the resources to grant money for these subsidies," said Bolojan.
The Prime Minister also stated that it is "abnormal" to have stability and "performance bonuses" in the management of companies that are recording losses.
"This package, which caps these indemnities, has only just entered into force. It is true that it has effects, but for the future. Because all these managements, for the most part, are based on contracts that are concluded in a sealed envelope. It is not a problem that someone earns well in a company. The problem is whether they do something to justify those good earnings. If the company has losses, if the losses do not decrease year by year, but increase, it is abnormal to have stability in the management of those companies and performance bonuses," Ilie Bolojan also said.
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