Romania: Fondul Proprietatea accuses Ministry of Energy of abuses within Hidroelectrica

, SEE Energy News

Romanian private investment fund Fondul Proprietatea (FP) has accused the Ministry of Energy of abuses within the state-owned electricity producer Hidroelectrica over the removal of Oana Truta from the company’s Supervisory Board at the Shareholders’ General Meeting (GSM) held in late August.

The statement from the fund said that the proposal by the Ministry of Energy does not include any grounds for initiating court proceedings against Ms. Truta. The Ministry and Hidroelectrica also ignored the legal right to information, by not giving access to the GSM documentation to the fund. FP considers that these actions represent retaliation from the Ministry of Energy to remove a Board Member who, in exercising her fiduciary duties, has opposed actions from certain members of corporate bodies that threatened the implementation of corporate governance principles in Hidroelectrica.

According to its statement, FP has already initiated legal actions against the decision approving the initiation of court action against Ms. Truta. The fund will continue to take all necessary measures to ensure that corporate governance principles at Hidroelectrica are upheld and that directors performing their fiduciary duties of administration should not be dismissed without reason.

FP points out that Truta is the most experienced board member at Hidroelectrica having served several board mandates with the company since March 2011 and being aware of the entire reorganization process of the company.

FP also noted that no concrete steps were taken for the listing of the company, on the contrary there have been mostly delays and confusion and inexperienced individuals have been appointed in Hidroelectrica’s Board.