Hidroelectrica canceled the process of appointing a general manager. Romania will lose money from PNRR

Hidroelectrica's Supervisory Board decided, on Wednesday, to cancel the process of appointing a general director of the company, according to an announcement sent to BVB. The members of the Council decided that Mihai Aniței, who was for several years the general director of the Azomureș joint venture and Country Manager of the Swiss group Ameropa, with operations in dozens of countries, “does not fully align with the requirements associated with the position of CEO at this time”.

Aniței obtained the highest score among all the candidates for this position, said sources close to the selection process.

In second place, also on the short list, Radu-Ioan Constantin, engineer and economist, who has been working in Hidroelectrica since 2008, in management positions in the supply area, received the same verdict from the Supervisory Board: he does not fully align with the requirements associated with the position of CEO at the moment, sources say.

The Supervisory Board decided to resume the selection process immediately, the release states. However, on Friday, November 28, the deadline approved by the European Commission expires, by which the Romanian state must appoint the managers of several energy companies, including Hidroelectrica. This is an obligation assumed by Romania through the PNRR.

Last week, the Supervisory Board also canceled the appointment of a financial director.

HotNews recently wrote that Mihai Aniței was selected for the position of general director, he being in the first position, followed by Radu-Ioan Constantin on the short list.

The current director remains in office. His name came up in the Recorder investigation

“To ensure operational continuity until the selection is completed, the Supervisory Board maintains the interim measures regarding the assumption of the duties of CEO and CFO”, the statement also states.

This means that Bogdan Badea remains interim. His name appears in the Recorder's investigation which shows that Hidroelectrica supplied 2 million euros of electricity without invoice to religious institutions and businessmen with political connections. And at that time, the company was managed by Bogdan Badea.

HotNews requested the Minister of Energy Bogdan Ivan to answer whether he will politically assume the failure of Hidroelectrica, especially in the conditions in which Romania will lose money from the PNRR. He was also asked if he would request the resignation of Bogdan Badea considering the information published by the Recorder. No response has been sent so far.

How Romania will lose money from PNRR

If by November 28 appointments are not made at the state companies, according to the principles of integrity and independence, Romania will definitively lose money from the PNRR. Hidroelectrica is one of these companies, and in its case, the procedures have reached the end, without having fully fulfilled the obligations assumed before the European Commission.

Lost money is calculated for each vacant position.

The selection process started late at Hidroelectrica. The European Commission found irregularities both in the way in which the previous selections for the Directorate and the Supervisory Board were carried out. More specifically, the Commission found four deficiencies related to transparency and fairness in the Supervisory Board and two deficiencies in the Directorate. The Ministry of Energy revoked, in March, three members of the Supervisory Board, the procedure for a new selection being started in the summer.

In the case of the Directorate, the Ministry of Energy claimed that it could not act and that only the Supervisory Board could do it. The European Commission accused the fact that the current president of the Directorate, Karoly Borbely, was a member of the Supervisory Board and part of the Nomination and Remuneration Committee (CNR) when the selection for the Directorate was made. He resigned from the Supervisory Board after the selection procedure had started.

Also, the Commission considered that Marian Fetița, the one who was appointed financial director, did not comply with the eligibility conditions imposed in the Directorate's selection procedure on its date.

In September, the two agreed to relinquish their positions, provided they receive compensatory payments equivalent to 24 average monthly allowances, sources told HotNews. Only then could a new appointment procedure be started.

The two had been selected in the fall of 2023, following that procedure considered incorrect by the European Commission.

What does Milestone 121 represent?

Several energy companies must go through a transparent and fair process of selecting new managers by November 28, 2025, so that Romania can obtain the amount of 228 million euros from the PNRR, Milestone 121 regarding corporate governance.

13 energy companies are targeted, but in the case of two of them, the Ministry of Energy claims that it cannot change the directors, as requested by the European Commission, according to an information provided in September by the Ministry of Energy.

It is a delayed milestone from payment request 3. The European Commission decided, last year, to partially suspend payments from the PNRR, on payment request no. 3. The decision related to the management of the energy companies was upheld in May, with the Commission stating that the amount will be permanently forfeited if the milestone is not resolved by November 28, 2025, the deadline.

The total amount that Romania must receive from this milestone is 228 million euros from the PNRR. The amount may be reduced depending on the position, if the Milestone is partially met.

The companies targeted by the European Commission, in terms of corporate management, are Hidroelectrica, Complexul Energetic Oltenia, SN Nuclearelectrica SA, Conpet, Romgaz, Oil Terminal, Electrocentrale Craiova SA, Midia Green Energy SA, Societatea de Administraione a Participations in Energie S., National Company for the Control of Boilers of Elevating Installations and Pressure Vessels (CNCIR), Eurotest and Radioactive Mineral Măgurele SA, Research Institute Scientific and Technological Engineering Mine Design on Lignite SA, Complexul Energetic Valea Jiului SA