Romania hit by crisis due to bad management both in private and public sectors, says AVAS President

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Romania has been hit by crisis for several years already, the cause being managerial lack of discipline both in private and state sectors, stated on Thursday, on public radio station, President of the State Assets Realization Authority (AVAS) Mircea Ursache.

AVAS President pointed out that prior to the crisis 74,000 economic agents failed to meet their current obligations to the budgets or to repay their banking loans and more than 1,500 contracts of transfer of state-hold property to the private sector were canceled.

„Here we have some elements in our power, of those who in charge with the state institutions or commercial companies throughout this period. To them one can also add a bad work force dimensioning, a staff overflowing with relatives, brothers in law, friends etc. Look at what happens in the administration councils of the state-owned companies”, said Ursache.

He underlined that after Sept. 1, 2008 another 56,000 companies appeared, not able to meet their financial commitments and, alongside the 19 anti-crisis measures, another 24 anti-crisis measures, proposed by PSD, are going to be included in the governmental programme.

„There are a few already announced, to be implemented immediately, starting Sept. 1, as the non-taxation of the reinvested profit, application of the lump-sum tax only for the sectors suspected of evasion and continuation of this programme in a crisis period, when people find increasingly difficult to purchase a house, to build a cheap house, dealing with housing for rent construction”, explained AVAS President.

The official came with the example of Oltchim Co., which has an overdue debt to the state in the value of 134 million euros, as well as of other 3,700 companies also with overdue debts to the state, which have to be recouped, as necessary measures to combat the crisis.

„I think that the staff cut measures represented a necessity and that, from now on, we must focus on the other strictly economic measures and less on those connected to human resources”, concluded Ursache.

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