Stipo: privatisation cancelled because of irregularities

The privatisation of Romanian glass and chinaware producer Stipo has been rescheduled after new owner Gabriel Chiriac asked for the privatisation contract to be cancelled because the state, through it…

The privatisation of Romanian glass and chinaware producer Stipo has been rescheduled after new owner Gabriel Chiriac asked for the privatisation contract to be cancelled because the state, through its sell-off body AVAS, did not comply with contract obligations. Under the contract the state should have granted the new owner various financial facilities to help Stipo pay off its debts. After the cancellation of the contract, the company, based in Dorohoi, northeastern Romania, will be managed by the state and then resold. Chiriac purchased the company at the end of 2004; he is president of Stipo“s board of directors as well as a representative of its workers association. Chiriac, through the Stipo workers association, asked the Romanian state for old ROL 1.3 billion (USD 43,000/EUR 35,000), which he has already paid back. Stipo owes the state and suppliers ROL 100 billion (USD 3.3 million/EUR 2.75 million).