The Authority for State Assets Recovery (AVAS) is currently being funded using the earnings from the post-privatization earnings and from debt collection. The vice-president of the AVAS, Mrs. Cristina Chiriac, said: "When it comes to the portfolio of the companies which have yet to be privatized, in which the state still holds stakes, my opinion is that they should be sold on a regulated market (especially the ones in which the state is a minority shareholder), at a quick pace, in order to create a positive cashflow to the institution. Going back to the post-privatization, I can tell you that this year we expect to earn about 37.5 million Euros, by charging penalties to companies that failed to honor their contractual obligations. This amount is divided as follows: 56,775,662 lei, 27,915,741 dollars and 3,214,923 Euros".
The post-privatization department of the AVAS currently manages 3,026 contracts. Mrs. Cristina Chiriac said: "We do this with 18 employees and a manager. The volume of work per expert is very large. It is true though that not all the companies that are still left in the post-privatization period have the same degree of complexity. We are predominantly watching the companies operating in agriculture, the former "Agromec"s. Nevertheless, on average an expert has to monitor approximately 189 companies. What needs to be understood, starting from these numbers is the fact that they reflect a very high volume of work, and these people are doing a good job, and they are working hard".
The post-privatization work first of all involves the monitoring of the compliance with all the contractual clauses by the buyers, as agreed upon by both parties. If it is found that these clauses aren't complied with, quick intervention is required, by any means, legal of course, in order to recoup as much as possible of those debts and to minimize losses.
