Cereal Products Factory (CPF) in Chisinau, where the state owns almost 80% of the shares, remained without about 60 real estates, after more than dubious transactions, which took place over several days, in April in 2014. They all came into the possession of a company founded just a few days before the transaction.

Activity of CPF Chisinau, located on Street Uzinelor no. 2, consists in processing of cereal products, being the main provider of flour to S.A. “Franzeluta”. According to a Government decision of 20 August 2007, CPF, in which the state owned almost 80% of the shares, was to be privatized. Then, the factory had a share capital of almost 116 million lei, and the state wanted to receive from privatization process not less than 92 mln. lei. Like many other objectives of that government decision, the factory, ultimately, was not sold.

Privatization failed, successful takeover

In November 2013, the current government has again proposed to privatize it. This was contained in a list that included 13 major companies, which were to be exposed to privatization through investment competition, based on individual projects. On the list of 13 companies found themselves in addition to CPF Chisinau, other famous companies: Moldtelecom, Aroma, Tutun CTC, Circus and Air Moldova. Nor this time, however, the combination was subject to privatization, and that’s because in February 2014, was canceled earlier judgment on the privatization of state property. Valeriu Lazar, the then Minister of Economy, said that the state gave up to sell the property this year because “overall, we concluded that we can not provide a sufficiently transparent and efficient process”.

Willing to put hand on factory was found without initiating the privatization process. Thus, although the institution was not sold by the state, it remained almost without real estates. They were sold in more than suspect way in April 2014, after two successive transactions, which took place at a distance of two days. According to information from Cadastral Agency on April 23, 2014, 60 real estates that belonged to CPF were given, following a sale contract no. 3403, to the company Ltd SERVIVET. After only two days, on April 25, 2014, the company SERVIVET resold the same real estates under the contract of sale nr. 2635, to the company Ltd FINANCIAL INVESTMENT GROUP. A few days before these transactions, according to data from the Cadastre, SA AVICOLA BUCOVAT required these goods for debts. FINANCIAL INVESTMENT GROUP Company, the owner of 60 estates, was founded on April 16, 2014, just nine days before entering into possession of buildings, being run by a person named Liliana Valentin Turcanu, who also appears as the only founder. The company specializes in building construction, design, hotels, bars and restaurants. Ltd’s headquarters is in an apartment on St. Toma Ciorba, 32/1.

Silence and evasion of authorities

A month ago, ZdG contacted Andrei Diaconu, Director of concerned Factory, to discuss the situation. After hearing the topic that we want to talk, he told us that the theme would be delicate and asked our data, indicating that he will return. After two weeks of waiting, he did not return, so we contacted him again. From the lobby, repeatedly we were told he is in session or that he went to the ministry.

We also contacted the Ministry of Agriculture and Food, under which lies Factory. Minister Vasile Bumacov told us that the problem is complex, which was addressed including him in information letters addressed to government. However, the minister advised us to speak to the Legal Department of the Ministry or with Elena Vahtin, the head of his cabinet, who would be aware of this problem. Contacted by ZdG, Elena Vahtin redirected us to Michael Butucel, head of the legal department of the MAFI. He, in turn, told us that the best thing would be to talk with representatives of the Factory, who would be responsible for this situation. We insisted, and Butucel told us to return on Monday, July 14, 2014, after returns from leave a subordinate who handled the case. On Monday, Butucel did not answer the phone. His colleagues told us that the person that he made reference would return from leave after 25th of July and not on Monday, as he announced us.

Wife of director of OFFER PLUS, owner of the buildings

CPF is a strategic enterprise for Moldova, contributing to provision of the bakery sector of the national economy with flour. We tried to find out how it was possible that such a state enterprise to run out of 60 real estates. We went first to the headquarters of FINANCIAL INVESTMENT GROUP, the owner of the buildings, to discuss with its representatives. Ltd is located in an apartment in a block of flats on St. Toma Ciorba, with restricted access. At Cadastre, the apartment where is included headquarters of created company a few days before the transaction is registered on Corneliu Nicholae Turcanu, probably husband of Liliana Turcanu, founder and manager of the company. Name of Corneliu Turcanu became known to public because of a case against Moldova at the ECHR.

He was and is the director Ltd OFFER PLUS, the company which won based on ECHR decision 2.5 million euro compensation from the State. The press has been talking lately about this file, launching the idea that behind this Ltd would stand including people with important state functions. Turcanu was judged, but was found not guilty, after OFFER PLUS brokered the sale of electricity from Ukraine to Moldova’s state institutions.

It all started since 2000

On the website of the Supreme Court (SC) we found data with reference to two lawsuits involving CPF Chisinau. Namely on this processes would be based, it seems, the situation created in April, when the real estate of the Factory were taken and sold. From a first file, where CPF Chisinau judged with Ltd “SERVIVET” and “Mobiasbank” on outlawing some contractual clauses, we find that in 2000 the majority of the state stake at Chisinau CPF was privatized, being estranged by JV ” Larga-Vin “. As the new owner of the privatized stake has not honored contractual obligations on investments in production capacity of the CPF, committing the same time, multiple abuses and violations of law, on 15 May 2003, the Economic Court returned Factory to the State.

Only that, in the period when “WIDE-VIN” had the majority stake ownership, CPF government has signed a number of credit agreements with “Mobiasbank”, and to guarantee loan repayment was established pledge on manufacturing complex of CPF Chisinau. Because it failed to repay the loan nominated, bank debts, including loan repayment guarantees, were initially assigned by the bank to Ltd “PICOM”, and than to the company Ltd “CEREALIS PROD”, later the same rights to be transferred to company SERVIVET Ltd, which, remember, in April 2014, took over the property of Factory and sold them two days later to FINANCIAL INVESTMENT GROUP company. This process has been lost by Factory in November 2013. Ultimate decision was made by five judges: Julia Sarcu, Ion Valkov, Tamara Chisca-Doneva, Vera Macinskaia and Constantin Alergus.

Who is behind the transaction?

Another trial CPF lost, also last fall, with SA AVICOLA BUCOVAT, which in 2012, sued Factory, calling the takeover of all its movable and immovable property, following a dispute on since 1998. After a process that took several years and in which CPF leadership complained that judges do not behave correctly, AVICOLA BUCOVAT had, in the end, prevail, ruled also by the judges Sarcu Iulia, Ion Valkov and Vera Macinskaia. According to the judgment, the CPF had to pay, through the property, more than 30 million lei.

Companies with which judged CPF Chisinau are founded and managed by people almost unknown. Ltd SERVIVET has as a founder Alexandr Burcovschi, similar to the name of a person compensated by the ECHR in 2007, after it was detained in 2004 for alleged illegal business with lands. The company is located in a building on Alexandru cel Bun, 44. Ltd CEREALIS PROD is located in the same building and is founded and managed by Maxim Pasecnic. Ltd PICOM was removed from the Register of Ltd’s, after entering the insolvency. It was founded by Eugenia Cernei and Valeri Doncenco. Previously, some shareholders of AVICOLA BUCOVAT wrote in an open letter, made public, they were called to a meeting with factory management namely on Street Alexandru cel Bun, 44, where are registered companies Ltd SERVIVET and Ltd CEREALIS PROD.

“Koschei” man from the shadow?

Hicsuntleones.eu website, which publishes a lot about raider attacks, was announcing in a series of articles that firms Ltd SERVIVET and Ltd CEREALIS PROD would be part of a group of companies that are owned, through intermediaries, by controversial businessman Vadim Ciornea, alias Koschei. The same site says that also AVICOLA BUCOVAT was taken over at a time, also through intermediaries, by Vadim Ciornea. ZdG wrote about it that, in the winter of 2012, he spent with three girls, along with two attorneys and counsel of the business man Anatol Stati, in a private apartment in Chisinau. Vadim Ciornea owns several companies, including in off-shore areas. His name appears in several cases filed by the Prosecutor General.

ZdG tried to contact Turcanu family on the address indicated, but failed. Also, it failed a dialogue with Vadim Ciornea. Editorial remains open to discussion with persons concerned, if they want to rule on the facts narrated above.

Victor Mosneag