Romania’s Ministry of Economy awarded, while not disbursing yet, a total of EUR 200 mln to eight firms with an average number of employees of 1.75 persons, an association of investors (AOAR) disclosed, accusing that at the same time, firms with much more relevant activity were rejected.

AOAR suspects that the firms are shell companies used by hidden entities that didn’t want to get exposure and, furthermore, wouldn’t have boasted the same profitability as tiny firms, Profit.ro reported.

The ministry defended the procedure based on evaluating the participants’ profit margin rather than their capacity or projects’ merit, claiming that the process was public and nobody objected, according to Economica.net. It also claimed that the winning firms would have to invest from their own pocket twice as much as the grants awarded, and unless they do so, the grants will not be disbursed.

The grants were awarded under the scheme passed by the emergency ordinance 959/2022, with the first call of projects closed on December 16.

One of the companies has an annual turnover of less than EUR 1,200 but pledged to invest between EUR 26 mln and EUR 45 mln. Six of the eight winners have an annual turnover of under EUR 120,000. One of the companies has no employees.

Companies such as the leader of the chemical industry, Chimcomplex, or the regional leader of the compostable packaging industry Promateris, were rejected. 

iulian@romania-insider.com

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