Misu Negritoiu will become Financial Supervision Authority president, tasked with overhauling the activity of the regulatory body, which has been rocked by charges of corruption.
<ul><li><p>ROMANIAS PREMIER BUSINESS WEEKLY APRIL 7 - 13, 2014 / VOLUME 18, NUMBER 12</p><p>FOCUS CLOUD COMPUTING: Organizations are becomingmore receptive to the advantages of cloud technology,though the public sector is still trailing behind, industry experts told Business Review page 8</p><p>Tax & LawTHE NEW INSOLVENCY CODE AND THE REVISION OF THE FISCAL CODE CAME UNDER DEBATE AT LAST WEEKS TAX & LAWCONFERENCE ORGANIZED BY BUSINESS REVIEWPAGE 6</p><p>NEWS</p><p>Food to waste?Romanias rate of foodwaste is higher thanthe European averageof 179 kg per capita peryear, said the agricul-ture minister page 4</p><p>Misu Negritoiu willbecome FinancialSupervision Authoritypresident, tasked withoverhauling theactivity of theregulatory body, whichhas been rocked bycharges of corruptionpage 5</p><p>ASF RELOADED</p></li><li><p>NEW S 3www.business-review.eu Business Review | April 7 - 13, 2014</p><p>NEWS in briefNEW S 3</p><p>BANKINGRaiffeisen prot up 16 pct lastyearRaiffeisen Bank Internationals post-tax profit in Romania rose 15.8 percent year-on-year, from EUR86 million in 2012 to EUR 100 millionlast year, as a result of lower paymentsin the profit tax account. </p><p>Earnings before tax increased by3.1 percent to EUR 101 million. Opera-tional income was up 1.7 percent overthe interval, from EUR 458 million toEUR 465 million.</p><p>Net income received through in-terest was down 7.2 percent to EUR281 million, while revenue from feesand commissions climbed 18 percentto EUR 168 million. Net income fromtransactions increased 50.8 percent,to EUR 14 million. </p><p>ENERGYGabriel Resources axes 367 local jobs over Rosia MontanadelaysRosia Montana Gold Corporation(RMGC), the miner controlled by Cana-da-based Gabriel Resources, said lastweek it was cutting jobs and scrappinglocal assistance programs as it soughtto scale back operations in responseto what it described as the unjustifi-ably long delays in the approval ofthe gold and silver mining project atRosia Montana.</p><p>The company said that 1,000 fam-ilies would lose their source of incomefollowing the move. </p><p>Aside from the 367 workers who were directly employed by RMGC,more than 100 jobs through social programs financed by RMGC would go due to the scale-back program, saidthe firm. </p><p>INSURANCEGothaers gross written premiums up 75 percent to EUR 15 mln in 2013Gothaer Asigurari Reasigurari, the insurer controlled by GermanysGothaer Group, said its gross writtenpremiums had risen by 75 percent to around EUR 15 million in 2013, while its number of customers doubledto over 52,000 against the previousyear. </p><p>The biggest shares in its portfoliowere held by the property and engi-neering line, with 42 percent, andCASCO, with 30 percent.</p><p>MEDIABortun Olteanu merges withPeople Public Relations AgencyBortun Olteanu and People Public Re-lations Agency have announced theirmerger, forming Daescu Bortun Olteanu.Over the past fiscal year, the two agenciesposted a total turnover of more thanRON 6 million.</p><p>The combined portfolio of the twoagencies includes clients such as Gillette,Duracell, Adidas, Siveco, Wellborn,Baneasa Developments, Philips, AOC,Subway, E-Boda, King, Logitech, Glen-fiddich, The Pole and Rombat, The In-stitute and the Civil Society Gala.</p><p>PROPERTYAustrian S+B Gruppe to buildEUR 17.5 mln hotel next toOtopeni airportAustrian developer S+B Gruppe is plan-ning to start the construction of a 250-room hotel next to the Henri Coanda(Otopeni) airport in Bucharest by theend of this year or in early 2015, after fi-nally obtaining the necessary buildingpermit, said Alfred Michael Beck, oneof the companys shareholders, last week.The project will require an investment</p><p>of around EUR 17.5 million. The hotelwill be built on a 40,000 sqm plot ofland which the company acquired in2004 for an estimated EUR 2.5 million.</p><p>RETAILCarrefour to launch Supeco discount format in RomaniaFrench retailer Carrefour is hiring storemanagers for the new Supeco stores itwill open in Romania, according to a re-cruitment ad on bestjobs.com. The firstthree branches will be opened in Giurgiu,Ramnicu Valcea and Targoviste. The Su-peco retail brand is so far only presentin Spain, where it was launched lastyear, according to Mediafax. </p><p>Newly launched Revicare aimsfor EUR 10 mln in sales this yearThe producer of Revicare, a new cos-metics brand launched last week inBucharest, wants to reach sales of EUR10 million this year by opening severalstores in Romania and starting exportsto Spain, the Canary Islands, Greece,Turkey and India, said the company.</p><p>The first Revicare shop was openedlast week in Bucharests Old Center andthe companys two owners Rohit Ahuja,an Indian businessman who has beenin Romania for about six years, and San-dra Popescu want to open more units</p><p>by the end of the year, both in Romaniaand abroad.</p><p>TELECOMVodafone boosts 4G speeds,launches new mobile paymentserviceVodafone Romania has announced newinvestments into growing the coverageand speed of its 4G network from 100Mbps to 150 Mbps at national level, oncethe company comes into the possessionof the license it won in the September2012 tender, in the coming days.</p><p>The company announced it wouldimmediately raise its 4G speed from 100Mbps to 150 Mbps. In the new fiscalyear April 2014-March 2015, it will in-crease the number of 4G sites to cover70 percent of the urban population. </p><p>The company has also launched anew service on the market, M-Pesa,which allows customers to make and receive payments via mobile phone without the need for a bank account.</p><p>Orange expands 4G network to90 cities, starts 4G+ testsOrange Romania has announced that itwill be expanding its 4G telecom networkto reach 90 towns and cities, representingover 45 percent of the countrys popu-lation. The operator will also be testinga 4G+ network in six cities. The latterwill allow data transfers at speeds of upto 300 Mbps, with the network equip-ment to be supplied by Huawei, accord-ing to Mediafax newswire. </p><p>Starting April 7, Orange will expandthe 4G network to cover more than 45percent of the national population.</p><p>All the presidents: celebrating ten years in NATOPresident Traian Basescu and two of his predecessors Ion Iliescu (far left)and Emil Constantinescu (right) attended a ceremony organized last week atthe Cotroceni Palace to mark the ten-year anniversary of Romanias joiningNATO. Declining an invitation to attend the ceremony, the prime minister,Victor Ponta, said it was Basescus party and has nothing to do with NATO,according to Hotnews.ro. Also present at the event, US charge daffairesDuane Butcher commented, Romania has strengthened the alliance im-measurably since it joined in 2004. Youve steadfastly and repeatedlycontributed to NATO operations, crisis management, and to transatlanticsecurity.</p><p>MOST READ www.business-review.eu</p><p>1 Wizz Air Romania launches newroutes, adds new plane to localfleet</p><p>2 EDP Renovaveis secures EUR 30mln of financing for six solarfarms in Romania</p><p>3 Forbes: Romania powers up, step-ping in as entrepreneurial techhotbed</p><p>4 Romanian high-school studentswin top positions at NASA contest</p><p>5 Romanian police investigatesmedia companies, ProTV deniesfraud accusations</p><p>Agerpres</p></li><li><p>4 NEWS www.business-review.eu Business Review | April 7 - 13, 2014</p><p>AGRICULTURE</p><p>Bucharest FAO conferencewarns about food waste,talks up family farming</p><p>About 179 kg of food per capitais wasted every year in Europeand Romanias average is abovethis level, said Daniel Constantin,deputy prime minister and agricultureminister, last week. He made his com-ments as Bucharest hosted the 29thFood and Agriculture Organization(FAO) European Regional Conference(ERC) and the 38th session of the Eu-ropean Commission on Agriculture(ECA).</p><p>Food waste and promoting familyfarming as a solution for food securityworldwide were two of the main topicsdiscussed during the events. Foodwaste is not an abstract concept but aphenomenon that affects us all. Wesee it taking place everywhere thereis food in stores, in restaurants, inour own homes, in schools, in farmsand even during the transport of foodproducts, said Constantin. House-holds are responsible for 42 percentof the food waste in the EU, producersfor 39 percent, retailers for 5 percentand catering for 14 percent, accordingto EU research. </p><p>Addressing the matter would re-duce pressure on production, espe-cially in the context of food shortagesand rising food prices, and would also</p><p>benefit the environment, he added.Drawing attention to this matter iseven more important considering thatabout 60 percent of todays food wastecould be eliminated through educationand technology, said the minister. Headmitted that in Romania the matteris seldom discussed but that the au-thorities are planning to find out thereal extent of the problem. </p><p>Over 1.3 billion tonnes of food arewasted worldwide every year, accord-ing to FAO data. This represents awhopping third of the food producedfor human consumption and USD 750billion in costs. At the same time, 842million people suffer from hunger,malnutrition and food insecurity. Sim-ilar quantities are wasted in industri-alized and less industrialized countriesalike, although in the case of low-in-come countries, much less food iswasted at the consumer level. </p><p>The FAO believes that if food lossesand waste could be halved, the re-quired increase of available food tofeed the world population by 2050would only need to be 25 percent,rather than 60 percent according torecent projections. Given the natureand causes of the phenomenon, halving food losses and waste is a </p><p>feasible target, according to the FAO.Family farms are a solution to fight-</p><p>ing food loss and waste, especially inemerging countries, believes Constan-tin. It is proven that family farmscan meet the challenges related tofood shortages and the underdevel-opment of rural areas and at the sametime they can be encouraged to prac-tice sustainable farming, thus achiev-ing the goal of integrated and sustain-able development, he said.</p><p>Romanias National Rural Devel-opment Program (NRDP) for the 2007-2013 period has benefitted 60,000small farms and the NPRD 2014-2020will also feature measures dedicatedto small farms, said Constantin.</p><p>The United Nations has declared2014 the International Year of FamilyFarming as a means to promote in-ternational awareness and help eachcountry to come up with plans aimedat strengthening the contribution offamily farms to eradicating hungerand reducing rural poverty. </p><p>The 29th FAO ERC and the 38thsession of the ECA brought around350 delegates from 55 countries toBucharest. Romania last hosted anFAO event in 1976. </p><p>Simona Bazavan</p><p>WEEK AHEADApril 7 Eurosfat 2014 Bringing together high-ranking Euro-pean officials and candidates at theEuro-parliamentary elections withrepresentatives of the business com-munity and civil society, the Eurosfatconference is a forum to debate poli-cies and put forward suggestions.The European Institute for Participa-tive Democracy Quorum, is behindthe event, which will tackle hot topics such as Romanias Schengen integration, labor force mobility andthe ins and outs of the European elec-toral process. Log on to theeurosfat.eu website for more infor-mation.Peoples Palace, 08:00,www.eurosfat.eu</p><p>April 8 E.ON RomaniaA member of E.ON Group, will an-nounce its 2013 financial results andlong-term plans. </p><p>April 10 Innovate Now ConferenceIs a one-day open-enrollment confer-ence designed for the Romanianmarket. The event will give a local au-dience a chance to meet and listen toSteve Shapiro, one of the foremostauthorities on innovation culture andbusiness practices. </p><p>Other speakers will join Shapirofor a day of interactive discussion anddebate, with a practical focus on busi-ness issues in the broader context oflarge-scale, global trends. More in-formation on how to register is avail-able on the innovatenow.ro website.Crowne Plaza Hotel Bucharest, 08.00</p><p>April 10-13 Construct Expo The 21st edition of Construct Expo,the international trade fair for con-struction technologies, equipmentand materials, will take place atRomexpo Exhibition Centre. Con-struct Expo brings together industryprofessionals, giving them the oppor-tunity to become part of a networkand share experience.</p><p>April 11 Upcoming legislationLaw no. 17/2014 regulating the saleand purchase of land outside city lim-its, amending law no. 268/2001 on theprivatization of companies managingagricultural land in public and privateownership, will come into effect today,30 days after it was published in theOfficial Gazette. The law grants any-body, including foreign citizens, theright to acquire agricultural land, butcertain categories have priority (co-owners, tenants, neighbors and theRomanian state). </p><p>Waste not, want not: over 1.3 billion tonnes of food are wasted around the world every year, says the FAO</p><p>Agerpres</p></li><li><p>NEWS 5www.business-review.euBusiness Review | April 7 - 13, 2014</p><p>FINANCE</p><p>Negritoiu takes helm at beleaguered ASFNegritoius appointment comes againstthe backdrop of a fully fledged scandalthat has engulfed the ASF in the lastthree months, culminating with itsformer president Dan Radu Rusanubeing taken into custody on corruptioncharges. </p><p>The regulator was also involved in controversy over the disproportion-ate pay of its nine board members.The budget-finance special committeein Senate held a hearing last month over the excessive wages atthe ASF. </p><p>Daniel Daianu, who became theauthoritys interim president on February 25, following Rusanus arrest, said during the hearing that he would reduce his monthly wage of EUR 12,800 by 30 percent,and apologized to the public for thescandal.</p><p>Negritoiu, who has spent the last17 years at Dutch lender ING, said dur-ing last weeks Parliamentary hearingsthat the main issue at the ASF wasnot the level of the wages, but thefact they did not reflect the perform-ance of the employees.</p><p>We have to strengthen the super-vision and control functions, to assure people that they have public confidence and that they areprotected. Over 10 million consumersare connected to this market, not only through RCA (e.n. mandatory car insurance), said Negritoiu, quoted</p><p>by Mediafax newswire.The institution has to be rebuilt</p><p>and reprofessionalized. This is what Ipledge and I plan to do it. I need time.Of course we have to repair its image,added Negritoiu, who will assume hisrole at the ASF on May 1. Parliamentalso approved the appointment of Vic-tor Ciorbea, who served as prime min-ister from 1996-1998, as nonexecutivemember on the ASF board.</p><p>Negritoiu was asked if he had collaborated with Ceausescus infa-mous secret police (known as Securi-tatea) during Romanias communistperiod.</p><p>Regarding collaboration with the Securitatea, I remember 20 yearsago, when I was in Parliament () Today it is easy to verify these things. I was not (e.n. a collaborator)and I can tell you one more time ifyou want. I can hand you some inter-views I gave 20 years ago, Negritoiutold MPs.</p><p>MPs also asked Negritoiu if he hadbeen involved in transactionsprocessed by ING Bank with banks inCuba and Iran. ING paid USD 619 mil-lion to settle this probe in June 2012.Some US dollar transactions were car-rie...</p></li></ul>