Károly Borbély, the general manager of Hidroelectrica, the largest electricity producer in Romania, announced his departure, a decision motivated by the need to avoid financial sanctions in the National Plan of Redress and Resility (PNRR), on the milestone on the corporate governance of public enterprises.
Károly Borbély. Photo: Facebook
The Romanian authorities specify that Károly Borbély has not been reproached for anything professional, legal or ethical, and the selection procedure by which it was named CEO was not considered illegal. However, the European Commission raised issues related to the conflict of interest, claiming that Borbély participated in the selection process for the Directorate after he had been a member of the Supervisory Board and in the Nomination and Removal Committee, according to news.ro.
A KPMG report, commanded by the Hidroelectrica Supervisory Board this summer, concluded that the selection of the directorate “It was generally in accordance with the legal and regulatory requirements applicable at that time and with the relevant practices of the reference companies” From Europe, including EDF, Engie, Enel, Stakraft and Vattenfall.
From Hidroelectrica, the financial director Marian Girl, targeted by the European Commission for doubts regarding the fulfillment of the eligibility conditions necessary for the function of the directorate, also leaves from Hidroeelectrica.
Brussels has reported corporate governance issues at the appointment of two directors from Hidroelectrica and two from the Oltenia Energy Complex, and the estimated PNRR penalty amounts to 25 million euros. At the same time, the damages for revocation without just cause are evaluated at about 5 million lei.
The Ministry of Energy has transmitted that Borbély's departure was taken to protect Hidroelectrica and to prevent European sanctions.
