Fri, Feb 10 2012

Experts to rule on Plama

Thu, Aug 30 2001 15:00 CET 250 Views
An expert group of representatives from all related government institutions will be assembled next week to try to solve the problems in the troubled Plama oil refinery of Pleven.

Economy Minister Nikolai Vassilev made the announcement on Tuesday, after meeting with representatives of protesting Plama workers and civil activists. Justice Minister Anton Stankov also attended the meeting.

Employees have been protesting on and off for a year and half, since the management of the company stopped consistently paying wages. Unpaid wages in Plama have now crossed the 15 million leva mark. Civil activists believe that the right course of action is to close the existing company and prepare a program for a new production of lubricants. They would like the government to take back the company and resume production under new management.

Earlier on Tuesday, the representatives of the protesters submitted to the Chief Prosecutor General's office documents showing irregularities for which Plama owners are responsible. Ognyan Petkov, of the Plama civic association (a group consisting of the protesters and concerned Pleven citizens), spoke of the sale of expensive equipment, inputs, spare parts and scrapped vehicles for a total of three million leva. Among these was a backup catalyst, containing platinum and iridium, worth over $1 million. These are expensive nonferrous metals, the sale of which requires a Finance Ministry permit. It is not yet known whether the owners of Plama had such a permit.

The working group that is to be created will have to answer several important questions - who the Plama owners are; why the financial reports for 1999 and 2000 have not been certified; and if the company is in the red or making a profit.

"Plama is a typical case of Bulgarian corporate history of the last 10 years, involving unclear ownership, offshore companies, capital siphoning, capital increase through in-kind contributions, outstanding debts, insolvency dragging on for half a decade, continuous change of receivers, strange court judgments and endless legal procedures," said Vassilev.

Last week, former employees of the Plama oil refinery resumed their protests, demanding unpaid wages. The protesters approved the texts of five letters, all pressing for a speedy solution of what they call "the Plama Case." In the letter to Prime Minister Simeon Saxe-Coburg, they insisted that MP Dimitar Stefanov be suspended from his work on a report on the condition of the oil refinery, because statements he has made show that he favours the present owners.

The protesters said that since he was chief of the Supervisory Board of the Privatization Agency in 1996, when the scandalous deal for the sale of Plama was concluded, it was inadmissible to ask his opinion on the condition of a company that "was sold for a song, not without his knowledge and personal involvement."

In a petition to the European Commission on Human Rights and the Strasbourg Court on Human Rights, Plama workers said that with the present condition of the Bulgarian judicial system, they have exhausted all available opportunities to defend their rights.

The other letters were to the ministers of justice, economy and finance, all urging them to send over inspectors to Plama. Employees insisted that an auditor should be sent to check the work of the Pleven District Court and possibly to renew the procedure towards Plama's bankruptcy. In a message to the prosecutor general, they described facts which, if proven right, would take Plama officials to court. According to the oil refinery's management, which did not meet the protesting workers, the rally is trying to sabotage the work of those who are still at Plama. In a message faxed to the media, they explained that negotiations are under way and "the debts to all creditors will be settled."

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