Another enterprise of the City Hall of District 3 is asking to be declared bankrupt. It is about Smart City Invest S3, founded in 2017. The company has accumulated debts of more than 12 million lei and has not paid salaries to employees since October. This is already the third enterprise of the City Hall of Sector 3 that has become bankrupt.

• The bankruptcy petition will come up for a vote at Thursday’s District 3 local council meeting.

According to a specialized report related to the draft decision, the company has debts of 12,252,345 lei, which are structured as follows: about 1.3 million lei to suppliers, about 390,000 lei to staff, 1.45 million lei to the state, 9 million lei credit. The turnover is 556,326 lei, this year it has an income of 587,919 lei and expenses of 4.4 million lei.

“Smart City Invest S3 SRL sent that “the situation with the debts previously accumulated by the company and the loss of the deferment granted by the National Agency for Fiscal Administration, the General Regional Office of Public Finance of Bucharest, determines the unpredictability of the extension to support these contracts”. At the same time, the company notes that in fact, it has not paid the right to wages to employees since October, and it also does not pay invoices to suppliers for outsourcing activities, a fact that can lead to the loss of employees and the impossibility of carrying out activities, although the company has contracts for the performance of construction works,” the message reads. .

At the same time, there are two debt collection cases in the courts, one from another enterprise of the City Hall of District 3:

• File No. 13934/2022 with Top Wood, which is required to pay the sum of 30,000 lei, representing the value of unpaid bills and fines of 18,796 lei.
• File No. 28711/3/2022 with the company Algorithm Rezidental – through which the company requests payment of the amount of 454,169.44 lei, representing the value of unpaid bills, and the amount of 39,728.09 lei, representing overdue fines for non-payment of bills.

The company currently has two active contracts with the City Hall of Sector 3:

• Equipment of the hall for fences at school 195 (Construction works based on the contract No. 109501/18.05.2022, concluded between the company and Sector 3 of the Municipality of Bucharest, the purpose of which is the execution of works and the supply of equipment and objects for the investment objective “Revitalization of sports spaces by equipping the fencing hall at secondary school No. 195”, determined by the decision of the district 3 local council No. 152/12.05.2022;
• Works on the development, restoration, modernization, maintenance and repair of building infrastructure in accordance with the following contract No. 283152 dated 29.11.2022 from the framework agreement No. 282994/29.11.2022 concluded between the company and Sector 3 of the Municipality of Bucharest.

Since its foundation, the company has performed a number of works for the City Hall:

• Contract for the performance of works to improve energy efficiency and modernize the C4 body -Creșa Greierașul- no. 622667/10.09.2019 between the company and Sector 3 of the Bucharest Municipality;
• Contract for the execution of works on the technical design and repair works for the building in Lucrețiu Pătrășcanu, no. 461421/26.06.2019 between the company and Sector 3 of the Bucharest Municipality;
• Creşa Trapezului demolition and construction contract, no. 182763/06.09.2018, assigned by contract No. 385276/19.04.2019 between the company and Algorithm Residential S3 SRL/Sector 3 of the Municipality of Bucharest;
• Development and modernization works of playgrounds and green spaces adjacent to: horse nursery, Ghiocelul nursery, Cerceluş nursery and Titan IV nursery, from sector 3″, direct award approved by the local council of sector 3 through HCLS3 No. 696/ 28.12.2018 .

The company was founded in 2017, initially called Investitii Spății versi S3, and in 2019 the name was changed to Smart City Invest S3. The majority shareholder is Sector 3 of the Municipality of Bucharest through Sector 3 of the local council, and the minority partner is SD3 – Salubritate si Deszapezire S3 SRL

Two more enterprises of the City Hall of Sector 3 are insolvent:

• AS3- S3 Street administration
• OPS3 – Order and Protection S3 SRL

In May 2021, consultants USR PLUS and PNL filed an insolvency request for OPS 3. In 2020, the company’s turnover decreased by 32%, the loss amounted to 2.7 million lei and the equity decreased from 4.3 million to 1.1 million lei. .

The bankruptcy application of AS3- Administrare Străzi S3 was approved by the local council of district 3 in December 2021.

In 2020, the company recorded a turnover of 67.3 million lei and a decrease in equity from 2.2 million lei to 2 million lei.

“The declaration of bankruptcy is motivated by the unstable financial situation of the company, which recorded a loss of 4,394.16 thousand lei in the first half of 2021, an increase of 32.06% compared to the same period last year, the loss of which indicates a negative level of equity . Also, on June 30, 2021, the company registers debts to suppliers of electrical materials, communal services, and commercial partners for a total amount of 15,763,020.29 lei,” the annexes to the decision of the local council, which initiated the procedure for declaring bankruptcy, state.​