[Intl-tobacco] Romania: Tobacco privatization delayed by trials (fwd)

[Robert Weissman]

Tobacco damaged by trials
by Bogdan Tudorache /		10 July, 2000 Vol. 4, Nr. 26
Source: Bucharest Business Week, Monday, 7/10/00

Recent law suits involving the Romanian Tobacco Company (SNTR) are likely
to delay its privatization and block much-needed investments in the
company until late autumn, industry officials warned.

Upset about last week's decision by the Supreme Court of Justice to
suspend SNTR's privatization contract with Interagro, Ioan Niculae,
Interagro's president, told BBW: "Until a final verdict is reached, which
will probably happen this autumn, all the investments will be blocked."

Another decision is expected this week on the Ministry of Agriculture's
appeal against the Court of Appeal, which had canceled the contract. "Both
courts' decisions gradually suspended and then canceled SNTR's
privatization contract,"  explained Aureliu Popescu, lawyer of Leaf
Tobacco A. Michailides, the Greek company which lost the bid for SNTR.
"Although the Court of Appeal canceled the contract last week, Interagro
and the ministry do not respect the sentence, continuing to follow the
terms and conditions of the initial contract," said Popescu.

Niculae claimed the contract was in order and the Court of Appeal violated
the law, impeaching the ministry and Interagro to file a new appeal.  "It
did not present the reason for suspending and canceling the contract
within the legal term of ten days, and we cannot file a complete suit
against Leaf Tobacco without the Court's motivation.