State-owned Transelectrica announced to investors on Monday that it had lost a new dispute at the Vienna Arbitration Center. This time the case before the company will be won by Jean Valentin Comanescu, a former member of the supervisory board, who will receive compensation in the amount of more than 800 thousand lei, as well as accessories, representing compensation for the fact that he was recalled until the end of his mandate. Transelectrica has so far lost several such lawsuits, so the government wants disputes with company executives to take place domestically, rather than in arbitration courts abroad.

What the Arbitration Court in Vienna decided in a new case

After settlement of the arbitration request Comănescu Jean-Valentin (RO) vs. The Vienna Arbitration Center of Transelectrica (RO) recognized the following claims:

• the payment of 186,384 RON, which represents compensation for the lack of competition in accordance with the assignment agreement, to which accessories are attached;
• payment of the amount of 605,748 lei, which represents the severance pay associated with the fixed gross monthly allowances remaining until the end of the mandate according to the mandate contract, to which additional funds are added;
• payment in the amount of 46596 RON, which is a variable component according to the commission agreement, to which the accessories are attached.

The company was also ordered to pay some of the arbitration costs.

Transelectrica must pay millions of lei to former executives

Transelectrica lost numerous lawsuits launched after the political dismissals before the mandates expired.

In October 2023, Transelectrica announced that Luisa Popescu, a former member of the company’s supervisory board, had won compensation of 792,132 lei (main), plus 11,759 lei and 7,011 euros as arbitration costs, at the Vienna Arbitration Center.

In August 2023, Ciprian Constantin Dumitru, a former member of the supervisory board, recalled in 2021, won the Arbitration Center in Vienna, forcing the company to pay a total of almost 2 million lei. He is not the only one who won at Transelectrica.

In December 2022, Oleg Burlaku, a former member of the supervisory board, won, obliging the company to pay the sum of 792,132 lei (the main amount), to which additional and court costs are added. Following Burlak’s success, other former Transelectrica executives filed arbitration claims with the Vienna Arbitration Center. They are Adrian Goycea, former president of the Supervisory Board, Ciprian Constantin Dumitru, Luisa Popescu, former members of the Supervisory Board, and Catalin Nitsu, former member of the Directorate. The amounts they are asking for are about 3 million lei. They were all expelled long before the end of the 4-year term.

In April 2021, Cătălin Nițu, a former directorate member, won an amount of 559,164 lei (principal amount), plus accessories and court costs. Cătălin Nițu was not satisfied with this and again submitted Transelectrica to the Vienna Arbitration Center, this time demanding 2.2 million lei.

The government no longer wants disputes with former heads of state-owned companies to be resolved abroad

Disputes with former heads of state-owned companies ending up in international arbitration courts are costing the state too much, according to a memorandum discussed by the government on Thursday, signed by Alina Gorghiu, the justice minister, and Mircea Abrudian. , Secretary General of the Government.

Justice Minister Alina Gorgiu says it is “natural and right” that disputes over mandate contracts concluded by Romania’s state-owned companies should be resolved domestically.

“It is difficult to understand what some state-owned companies are doing in Romania. They promote mistrust in their own justice system, in the national courts of Romania. As the Minister of Justice, I cannot agree with this.

According to the Memorandum, the costs associated with the settlement of disputes abroad are high and have significant negative consequences for the state budget. That is why the memorandum proposes to finalize the legislation on corporate governance so that the financial aspects of disputes abroad are taken into account when concluding mandate contracts with the heads of state-owned companies.