CFR’s Board of Directors, dismissed for mismanagement

The General Meeting of Shareholders of CFR, Romania’s National Railway Company, controlled by the Ministry of Transport, decided last Friday to dismiss all the members of the Board of Directors due to their mismanagement which affected the company’s financial situation, the Ministry announced through a press release.

The Board of Directors was comprised of: Florian Raimund Kubinschi, President, George Micu, Sebastian Gabriel Tcaciuc and Jiru Enache as members.

According to the same informing, the decision follows after some serious irregularities in the company’s management such as: ‘the failure of fulfilling the oversight and control obligation of the company’s executive which allowed to continue some harmful acts committed by the executive and noted by the control body, as well as the violation of the provisions of the Government Decision no. 109/2011 concerning the corporate governance of enterprises and other legal provisions.’

During the same meeting there was appointed a new board of directors – Ovidiu Petrisor Artopolescu (member of the Supervisory Board of Transelectrica), Ovidiu Puturca (Secretary of State at the Ministry of Justice), Victor Cionga (Managing Partner at AZ Capital Advisors), Florin Luca (financial consultant) and George Ciobanasu (auditor).The new president will be elected within the next period when the new board will have a meeting in that regard.

‘Although we face some resistance, it should be clear to everyone that the Ministry of Transport started an irreversible process of making the subordinated companies be economically viable. All the results of the verifications made will be sent to the institutions in charge for analysis in order to take the necessary legal action and the Ministry’s head will act accordingly.’, Ramona Manescu, Minister of Transport, said.

The Ministry run last year some verification on companies it controls, among which CFR SA and TAROM. The issues with CFR were notified last November, through a report mentioning shortcomings on different levels in the company’s management.