sâmbătă 06 decembrie
Login Abonează-te
DeFapt.ro

Categorie: Investigații

557 articole
Investigații

No way for Huawei in Romania

No way for Huawei in Romania? The Chinese group Huawei operates in Romania through Huawei Technologies SRL, a company entirely owned by Huawei Technologies Cooperatief UA from the Netherlands. The company’s annual revenue increased during the last three years, according to data from the Ministry of Finances. 2016: RON 1.27 billion (over EUR 280 million) with a profit exceeding RON 36 million, approximately EUR 8 million. 2017: RON 1.4 billion (over EUR 310 million) with a profit exceeding RON 20 million, approx. EUR 4.5 million. 2018: RON 1.9 billion (over EUR 420 million) with a profit exceeding RON 36 million, approx. EUR 8 million. The Chinese therefore increased their revenues by 50% in two years. Paradoxically (or maybe not), this lead also to a drop in the number of employees: from 1,447 in 2016 to only 1,018 in 2018. The profit was in the margin under EUR 10 million every year during the last three years. No way for Huawei in Romania But the success of the company seems threatened by trans-Atlantic strategic movements that didn’t seem predictable with the take-over of the Prime-Minister Chair by Victor Ponta (PSD) back in 2012. In 2013, for example, the Minister of Communications from that time, Dan Nica, was signing a “Memorandum of Agreement” with Huawei through which the two entities “agreed to enter a strategic cooperation relationship”. Also read: No social-democrats in power, no success for China In the same year 2013, the Ministry of Communications was organizing a tender for the RO-NET project development, for building a high-speed internet network in 783 poor rural localities in Romania. The tender, financed by the European Union, amounting to RON 380 million (over EUR 85 million) was won in 2014 by Telekom, supported by Huawei (as equipment provider). After more than five years, in October 2019, only two of the seven project lots have been performed, according to a notice of the Ministry of Communications. Proxies all the time But Huawei Technologies SRL never attends a public tender as equipment provider on its own. Also, there is no won tender in the public procurement portal of Romania. But the Chinese equipment still reach the public institutions. Through other providers, as shown by a contract concluded by the Permanent Electoral Authority at the end of 2019 for the pieces of equipment necessary for the elections from 2019 – 2020. As information obtained by Hotnews show, “we are talking about Huawei equipment in regards to the hardware procurement equipment necessary to implement the computer system for centralizing the elections results and the computer system for monitoring the presence to vote in 2019”. HAINA is Romanian for "clothing" The Huawei offensive has another component in Romania: an educational one. In November 2018, the Technical University “Gh. Asachi” from Iași was announcing the launch of a training centre of the company called Huawei Authorized Information and Network Academy (HAINA). According to an article on the website of the Iasi Technical University, “Huawei donated, for the HAINA Training Center and the competition that started on Monday, November 5th, one of the laboratories of the Faculty of Automatics and Computers with an investment exceeding USD 50,000. The professors from the faculty were trained free of charge by the Huawei team to be able to perform the respective courses, and the representatives of the company visited the laboratory afterwards to see where the students will work”. The current objective for the Chinese company is the 5G network from Romania. Currently, the tender for attributing the 5G contracts is in stand-by. 5G, hard to get Huawei's name was invoked even by the president Klaus Iohannis in connection with this extremely important project. Asked by Europa Liberă (in December 2019) if he talked to PM Ludovic Orban about the Government adopting a Memorandum regarding the 5G network (agreed following a meeting at the White House between Iohannis and Donald Trump, in the summer of 2019), President Iohannis spoke his mind. He said (during an unofficial meeting with the journalists) that he told the Executive to wait regarding the tender and on adopting the 5G. „There is a single provider – Huawei, the others are relatively close, the ones from Europe and the United States. Let’s not get ahead of ourselves. Such tender will have such deep implications and the process is no longer reversible. If we have chosen a solution, it can no longer be reverted. Romania is going to develop this tender when ready”. So no way for Huawei in Romania. Huawei counter-attacked through advertising interviews in the economic media where it tried to empower the idea that the “exclusion of the Huawei equipment from the structure of the 5G network would generate additional EUR 2.6 billion costs for Romania, meaning nearly 1% of the PIB”, but without submitting clear arguments in this regard.

No way for Huawei in Romania (source: huawei.com)
Tools and other devices (source: honest.ro)
Investigații

tools and other devices

Tools and other devices: Honest General Trading SRL, a company owned by two Chinese citizens (Zhang Dong & Chen Changhong), operates on the Romanian market for 25 years and its figures rise from one year to another. Tools and other devices for good money In 2018, the company had revenues exceeding RON 202 million (EUR 45 million) and a net profit of RON 22.5 million (EUR 5 million) with 351 employees. Also read: No social-democrats in power, no success for China Only one year before, in 2017, the revenues amounted to RON 193 million and in 2016, RON 163 million. Therefore, in only two years, the company registered an increase of 25% of revenues. According to the presentation on their own website, Honest General Trading SRL trades “manual or electrical tools and devices for constructions works, gardening and site survey; electrotechnical materials; sanitary objects and installations; protection equipment”.

Chinese-German bikes in Romania (source: dhsbikeparts.ro)
Investigații

Chinese-German bikes in Romania

Chinese-German bikes in Romania: Eurosport DHS SA is the Romanian company (Deva, Hunedoara) that manufactures both bicycle parts and electrical bicycles that ships mainly to Europe, according to their own website. The company is owned by the Chinese citizens Yang Xi & Yang Tianqi together with the German company Prophete GmbH & Co KG, a 100-year-old bicycle manufacturer, that joined the Romanian company in 2006. Chinese-German bikes in Romania Yang Xi is also the representative of the off shore company Dewell Investment Limited (Hong Kong), that owns the majority shares of DHSBaby SRL located in Deva, Hunedoara. Also read: No social-democrats in power, no success for China The same off shore company also owns Cerurim SRL in the same locality. According to the “Official Gazette”, “There is an economic interest between the companies Eurosport DHS SA and CERURIM SRL for the SA guaranteeing the loans contracted from Banca Transilvania by CERURIM SRL, in the sense that CERURIM SRL is the main bicycle wheels and rims provider and approx. 50% of CERURIM turnover is generated by the commercial relations with Eurosport DHS”. Profits were made In 2018, Eurosport DHS SA registered revenues amounting to RON 412 million (approx. EUR 92 million) and a net profit net of RON 15.7 million (approx. EUR 3.5 million) with 331 employees. In the same year, DHSBaby SRL, manufacturing strollers, car seats, tricycles, registered revenues of RON 16.5 million (approx. EUR 3.7 million) and a net profit of RON 2.7 million (approx. EUR 600,000). Cerurim SRL, that manufactures not only wheels and rims for Eurosport DHS SA, but also vehicles for people with disabilities, collected revenues of RON 10.8 million in 2018 (EUR 2.3 million) and had a net profit of RON million 2.4 (little over EUR 500,000) with 40 employees.

COSCO Shipping Line Romania vessel in Constanta (source: Facebook/COSCO Shipping Line Romania
Investigații

Constanța safe harbour for COSCO

Constanța, safe harbour for COSCO: the Chinese giant shipping corporation is represented by two companies in Romania. One of them is called COSCO Romanian Shipping and Trading SRL and its sole shareholder is the company COSCO Europe GmbH Hamburg. Constanța, safe harbour for COSCO In fact, the current name of the company is COSCO SHIPPING (Europe) GmbH, as explained by the Chinese group website: “COSCO SHIPPING (Europe) GmbH is the regional management company of the China COSCO SHIPPING Corporation in the European Region. The predecessor of this company, formerly known as 'COSCO Europe GmbH', was the representative office of COSCO in Hamburg and registered and founded on February 15th, 1989, by the original COSCO Group in Hamburg, Germany, with a registered capital of 500,000 DM. It was the first regional management company set up overseas by the COSCO Group. The company’s registered capital increased to 3.78 million Euros in 2009. On September 11th, 2017, its name was changed to the active name.” In 2018, COSCO Romanian Shipping and Trading SRL registered revenues amounting to RON 15.8 million (EUR 3.5 million) and a net profit of RON 3.6 million (EUR 800,000) with 14 employees. Two companies, more opportunities The other company is called COSCO Shipping Lines (Romania) Co. Ltd. SRL and is owned by COSCO Shipping Lines (Europe) GmbH & COSCO Shipping Lines (Belgium). According to the company’s website, “COSCO SHIPPING Lines (Europe) Company, which is based in Hamburg, Germany, has been established in February 1989 as one business section of COSCO Europe Company. On January 11th, 2017 the Name has been changed to COSCO SHIPPING Lines (Europe) Company”. The other company, according to the same source, has a strategic position – Antwerp: “COSCO SHIPPING Lines (Belgium) N.V. represents COSCO SHIPPING Lines CO. LTD., Shanghai in Belgium and Luxemburg and has main office in Antwerp and sub office in Zeebrugge. COSCO SHIPPING Lines CO. LTD is the leading container logistics company for China and offers its customers full coverage of Worldwide trade lanes, with many of the fastest transit times. We have regular services connecting Asia, North & South America, Europe, the Indian Sub-continent, the Middle East & Africa. Services to Australia and New Zealand complete coverage in Asia-Pacific. With an in-house team of forwarding specialists we can assist customers with a full logistics package. Antwerp's & Zeebrugge's excellent locations in North West Europe, enables Cosco Shipping Belgium to offer exporters and importers swift and made-to-measure logistic services”. COSCO Shipping Lines (Romania) Co. Ltd. SRL has better results compared to her sister COSCO Romanian Shipping and Trading SRL. Therefore, in 2018, it registered revenues exceeding RON 196 million (over EUR 43 million) and a net profit of almost RON 11 million (EUR 2.4 million) with 42 employees. Big plans for the future In an interview for a specialized magazine in 2019, Cătălin Petre, Deputy Manager of COSCO Shipping Lines România, makes an interesting forecast in the context of Chinese business in Romania and Europe in general: “Costs for shipping will rise and with them, the freight cost (editor’s note: cost of freight transportation on sea) and will lead, in my opinion, to reducing the differences in costs between sea and railroad shipping. Shipping on sea will remain cheaper than the railroad one still, but the difference between the two will be significantly lower. In this context, it is possible that part if the volumes shipped now on sea will be moved on railroad, the transit time being less in case of railroad transportation, especially if we talk about One Belt One Road, where we already have a lot of trains on the 2 corridors (North and Middle Corridor) with rising volumes every month, every year. We have several ongoing projects. Together with another partner we intend to launch a new service connecting the Black Sea-Constanţa Harbour with the West Mediterranean Sea and North of Africa. Also, another project we are working on is launching a container train that will connect the Piraeus Harbour to the centre of Romania.” Facilities around the Black Sea According to the publication “Intermodal & Logistics”, quoted previously, “COSCO SHIPPING Lines (Romania) is one of the leaders in the sea-shipping sector in Romania. The Company, as exclusive agent of the ship-owner COSCO SHIPPING Lines, provides integrated sea transportation and logistics services towards and from the main harbours in the Far East, Middle East, Europe, North America, Africa, Australia and New Zeelande. The company also operates in Moldova and Caucaz (Georgia, Armenia Azerbaijan), coordinating the activity with the help of its sub-agents from these areas. COSCO SHIPPING Lines (Romania) provides the only direct service from Asia to the Black Sea (Constanţa and Odessa), the clients benefiting from a competitive transit time. The service was launched in 2006, the ships’ capacity rising gradually from 2,500 TEU to 10,000 TEU (TEU stands for Twenty-Foot Equivalent Unit which can be used to measure a ship's cargo carrying capacity. The dimensions of one TEU are equal to that of a standard 20′ shipping container. 20 feet long, 8 feet tall).” Conflict of interests? There are connections between COSCO Shipping Lines (Romania) Co. Ltd. SRL and the sister company COSCO Romanian Shipping and Trading SRL also regarding the human resources, not only shareholders. And one of these connections is Laurențiu Hornet, who works for both, according to his declaration of assets submitted by his wife, Lacrima Hornet. She works for the Romanian Naval Authority right in the premises of Constanța harbor, where the two companies held by the Chinese Giant COSCO also operate, and leads the Program Coordination Office. Hornet was mentioned on the website of “Breakbulk Caspian” since October 2018 (developed at Baku, Azerbaijan, where “participants discussed the transportation of heavy and oversized cargo by rail and water transport in the Caucasus and Caspian region”) as “operations manager” of COSCO Romanian Shipping and Trading SRL. The Ukrainian branch of COSCO is located in the Odessa port.

COFCO Intl employees in Geneva (source: Instagram/cofcointl)
Investigații

COFCO the billionaire grain trader

Until 2017, the company now called COFCO International România SRL was called Nidera România SRL. But one year before, the grain trader Nidera, owned by a Dutch family, became 100% the property of COFCO (prior, COFCO had bought 51% of Nidera for an amount estimated by the analysist for USD 2.4 billion). COFCO, the billionaire grain trader, is the largest grain trader in China and one of the most active world players on this market during the last years. COFCO, the billionaire grain trader from China COFCO expansion policy may be seen ongoing also in Romania, through COFCO International România SRL. The Romanian company is owned by CIL Agri Enterprises BV (former Nidera Agri Enterprises BV) & Concordia Trading BV – both subsidiaries of COFCO, the Chinese mother-company. In 2018, COFCO International România SRL's revenue was RON 3.9 billion (approximately EUR 900 million). But the net profit was a thousand times lower: RON 3.9 million (approximately EUR 900,000). The number of employees officially stated is 75. Also read: No social-democrats in power, no success for China As the grain market needs access to the most efficient means of transportation, by sea, the transaction between COFCO and Nidera was very useful for the Chinese also because it came together with a harbor operator in Constanța. Therefore, COFCO International România SRL and COFCO International Netherlands BV hold total ownership over the harbor operator from Constanta, United Shipping Agency SRL, a company previously held by Nidera. The largest storage facility in Constanța In 2018, the revenue of United Shipping Agency SRL amounted to RON 61.5 million (approx. EUR 12.5 million) and the net profit is over RON 10 million (over EUR 2.2 million) with 210 employees. According to local media, the harbor operator “holds storage capacities for grain of approx. 250,000 tons”. But Ziarul Financiar mentions a storage capacity of “only” 228,000 tons. Even so, United Shipping Agency SRL is the most important harbor operator in Constanța on this level. COFCO also (informally) got the control of the fluvial harbor operator SCAEP Giurgiu Port SA. According to the presentation on their own website, the river harbor operator ensures “services in harbors: Oltenița, Giurgiu, Zimnicea, Turnu Măgurele, Corabia and Bechet” and “has harbor platforms, warehouses for storing merchandise, as well as silos for storing grains”. How does COFCO International România SRL controls this fluvial harbor operator? With a loan of EUR 180,000 awarded in 2018, guaranteed by SCAEP Giurgiu Port SA with the Traian pusher boat, property of the harbor operator. According to a mention in the “Official Gazette”, “The loan is necessary to improve activities in the grain silos from the Company’s work points situated in Zimnicea harbor (increase of the grain acceptance capacity and delivery to barges from 80 t/h to 200 t/h)”.

Bank of China in Romania, a public event (source: profit.ro)
Investigații

Bank of China in Romania

Bank of China officially entered the Romanian market, as a branch of Bank of China Hungary, in December 2019, and marked the moment with a festive ceremony at the Bucharest Palace of the Parliament. According to data from the Ministry of Finances, the Romanian branch declared no activity in 2019. What's Bank of China in Romania supposed to do The Branch from Bucharest is supposed to develop corporate activities only, to work with big companies only and to finance possible infrastructure projects, should they become effective in the future. For the moment, no such important project was notified. The ceremony which took place at the Palace of the Parliament has a very relevant role in understanding the relation between the Romanian state and the Chinese one. Therefore, if China had some of the most important guests possible (Liu Liange, the president of the Bank of China’s Board of Directors and Jiang Yu, the Chinese Ambassador in Romania), Romania sent less important officials. So, the event was attended by Teodor Meleșcanu, the president of the Senate at the time (but with a very fragile political position, that also lead to his resignation from the head of the Parliament’s chamber shortly after), Antonel Tănase, General Secretary of the Government (a close acquaintance of the Prime-Minister Ludovic Orban, but only as his replacement) and Florin Georgescu, Prime-Vice-Governor of the Romanian National Bank (therefore no Mugur Isărescu, the NBR Governor). The sweet tongue in the ear The statements were, as expected, filled with superlatives. “We will direct the Chinese companies to invest in the region and in Romania. The Branch from Bucharest is a new starting point for the Bank of China. It’s the oldest bank in China, operating for 107 years. It has 320,000 employees today, over 11,000 work points, USD 3,200 billion in assets listed, USD 30 billion in net profit.”, said Liu Liange, the president of the Bank of China Board of Directors, according to profit.ro. Teodor Meleșcanu declared that “Bank of China opening a Branch in Bucharest is a very important moment for Romania and we should be grateful to those who had a big contribution in this important step for a smooth development of the Romanian-Chinese relations”. Meleșcanu wanted to personally give thanks especially to the Romanian National Bank and to the governor Mugur Isărescu “for the contribution to the cooperation extension and the dialogue with the People’s Republic of China“. Jiang Yu, the Ambassador of the People’s Republic of China in Romania wanted to underline the records: “It is not only the first bank that opens a branch in Bucharest, but also the biggest foreign bank to come to Romania and to break the barrier of financial cooperation between the two countries”. Yu said that China’s development is not a threat for anyone, but a clear cooperation opportunity. No Isărescu Florin Georgescu, Prime-Vice-Governor of NBR, sent the Chinese, in the name of Romania’s central bank “warm welcome wishes to Romania on opening the first branch”, then recalled the Romania-Chinese friendship is an old one, ever since the communism period. ”Romania was the third state that on October 3rd, 1949 acknowledged the People’s Republic of China. Until 1990, the Romanian-Chinese relations were regulated by bilateral agreements, that ensured a balance by compensating the receivables. After 1990, bilateral relations were made under the patronage of the new international environment, a tendency for draw-back. Friendship relations will be developed hereafter through the business environment and the opening of the Bank of China branch is a new step in a fruitful Romanian-Chinese cooperation”.

ZTE Romania's Facebook photos are as old as 2014 (source: Facebook/ZTE Romania)
Investigații

Huawei's very poor brother ZTE

Huawei's very poor brother, ZTE România SRL, is owned, according to “The Official Gazette”, by “ZHONGXING COMMUNICATION (also known as ZTE CORPORATION, in English transliteration)”, as sole shareholder. The telecommunications company has solid business relations with national data and voice operators (such as RCS RDS, for example) and a greater role in the region than other ZTE representatives. Also read: No social-democrats in power, no success for China According to an announcement made by the company, ZTE opened a service centre for monitoring the telecom networks of 23 European states and has invested, until the end of 2015, a total of 100 million euros in development.

Ilfov county, preferred by Chinese (source: gds.ro)
Investigații

Chinese trade is made in Ilfov

Chinese trade is made in Ilfov. Traditionally, Ilfov county is the base of Chinese companies having trading businesses in Romania: from clothing and footwear to sanitary equipment and machinery. Chinese trade is made in Ilfov In Afumați, a locality in Ilfov, ten companies had revenues of 287 million lei (64 million euros) in the fiscal year 2018, the most important being Everpro International Construction SRL (with revenues of 86.2 million lei – 19 million euros, which sells bathroom sanitary ware and installations) and Giant Star SRL (with revenues of 81 million lei – 18 million euros, which sells doors and accessories). Also read: No social-democrats in power, no success for China In Voluntari and Fundeni, other two localities in this county, six companies have had in 2018 total annual revenues of almost 117 million lei (26 million euros), the most important company being Plastic Recycling Export SRL, which operates in the field of sanitation, and which had revenues of 45.9 million lei (10 million euros). In Hunedoara, the county in which the Eurosport DHS bicycle factory is located, there are three wood processing companies (RO XI Wood Systems SRL and Ecowood Enterprises SRL in Orăștie, Damias AS SRL in Brad) owned by Chinese citizens. Together, they had total revenues of 53.7 million lei (12 million euros) in 2018.

NBHX Rolem plant in Brasov county (source: bizbrasov.ro)
Investigații

Chinese NBHX Rolem active in Romania

Chinese NBHX Rolem, active in Romania. NBHX Rolem SRL (Codlea, Brașov) is owned by the sole shareholder NBHX Automotive System GmbH Germany (represented, at least since 2018 until the present, by its manager, Fuqing Lin). Chinese NBHX Rolem, active in Romania NBHX Automotive System GmbH Germany is fully owned by Ningbo Huaxiang Electronic Co., Ltd. Shanghai. According to the website of the Chinese company, “As an international group corporation incorporated in 1988 and became a public listed company on the Shenzhen Stock Exchange in 2005, we specialize in designing, developing, producing, selling and after selling services of medium and high-end passenger car parts. With the global headquarters located in China, we have several branches in North America, Europe and South Asia, and more than 60 manufacturing sites and 3 regional R&D centres around the world, as well as over 15,000 employees worldwide. Also read: No social-democrats in power, no success for China As one of the world's top 500 auto part companies, we provide vehicle interiors and exteriors, metal parts, automotive electronics and other related products and services for many world-famous auto brands. Our major clients include: Volkswagen, BMW, Ford, GM, Jaguar Land Rover, Mercedes-Benz, Toyota, Volvo, SAIC Motor, FAW Car, Dongfeng Nissan and so on.” Big brands for NBHX Rolem The managing director of the Romanian company, Tobias Engel, declared in 2019 for an economic publication that “Year 2018 brought the company a new client and a new project, namely Jaguar Land Rover, for which NBHX ROLEM SRL is currently manufacturing the L405 range. Through this project’s intermediary, the company aims to win the position of trustworthy supplier for the manufacture of decorative dashboard ornaments for the luxury vehicles of the Jaguar Land Rover corporation. Year 2018 was a good year for NBHX Rolem, being the year in which it launched its series production for classes A and B of the vehicle manufacturer Mercedes, in the most recently inaugurated factory, the one in Ghimbav.” Engel also showed that, in 2019, the company gained an IATF 16949 certification, which “for a company, firstly means a boost in credibility and image – if a client is looking for a supplier, the IATF 16949 certificate is the first requirement for its appointment”. NBHX Rolem SRL owns three different manufacturing spaces: Codlea, Cristian and Ghimbav. In fiscal year 2018, the company earned revenues of over 375 million lei (over 83 million euros) but had a loss of 26.5 million lei (6 million euros) with 841 employees.

Lemnking, involved in shady businesses in the port of Constanta (source: riseproject.ro)
Investigații

Lemnking a Chinese business scam

Lemnking, a Chinese business scam, worked for many years in Romania due to authorities turning a blind eye to it. In 2004, the Social Democrat deputy Aurel Gubandru was proudly presenting within the Chamber of Deputies the effects of a visit in China made by Adrian Năstase, the social-democrat prime minister at that time. When Năstase visited China “The visit made by prime minister Adrian Năstase in the P. R. of China was truly successful in developing Romanian-Chinese relations, and its results will surely be quick to appear. (...) in the second part of February 2004, a delegation from the Ministry of Commerce, led by the ambassador of P. R. of China in Bucharest, His Excellency Xu Jian, made a visit in Buzău County. (…) After the meeting at the prefecture, the Chinese delegation, which also included the representatives of the company F&J INTERNATIONAL (see dedicated article), visited three companies: the crayon factory; the cigarette factory; S.C. LEMNKING S.R.L., whose object of activity is processing and transporting wood.” Lemnking Industry Com SRL is owned by Shanghai F&J Investment and Management Co Ltd and three individuals, Chinese citizens, connected, one way or another, to the Chinese group F&J. Lemnking, a Chinese business scam mentioned by prosecutors At the beginning of 2012, Lemnking Industry Com SRL was mentioned by DNA prosecutors in the file of an extended corruption network located in the Constanța port, which also included a senator and the then secretary general of the Interior Ministry. The notoriety of the latter characters helped the name of the Chinese-owned company not be noted by the media. According to a press release issued in April 2012 by anti-corruption prosecutors, “an employee of S.C. Lemnking Industry Com S.R.L. Pârscov, Buzău was charged with the following crimes: initiating or establishing an organized criminal group or joining or supporting in any form such a group, complicity in the crime of bribery”. The same press release also added that the said employee was providing sums of money, through intermediaries, together with other persons charged, “so that the customs workers involved would illegally allow access in the country for important containers, or allow access in the country to certain containers blocked in customs, without any legally plausible grounds. Customs intermediaries, which were members of the group, would take over the import operations of their clients, redrafting the documents of origin for their goods, naming a ghost company as fictitious importer, reporting unlawful situations to customs commissioners and customs officers, to enable the establishment of bribery, in compliance with the group’s unwritten prices, negotiating the bribe and, in the end, paying it, sometimes through an intermediary to the customs commissioner, and other times, directly to the customs worker.” Bribes, smuggling, high connections In its press release, DNA also mentioned other types of illegal arrangements in which the Lemnking employee was involved: “In his turn, the culprit (...), Deputy Head of the Customs Office of Constanța South Agigea, both alone and together with some of his subordinates (...), claimed various amounts of money from several customs intermediaries and importers (...). The money was claimed both for providing illegal access in the country to certain containers of imported goods, and for allowing access in the country to other illegally smuggled goods, instead of having them blocked in customs, without any plausible legal grounds.” However, in August 2019, the High Court of Cassation and Justice decided the final exoneration of all those involved in the file “since the deed does not exist, the deed is not provided by the criminal law, or there is no evidence that a person has committed the crime”. The press connected this decision to the legislative changes that rendered certain evidence of the criminal files unfit to be used by the judges. Huge debts, bankruptcy Ever since the end of 2011, Lemnking Industry Com SRL went into insolvency, having debts to banks alone of 4.4 million dollars, 3.7 million euros and 18 million lei (over 4 million euros). Not accidentally, in April 2012, Gao Lei, one of the individuals loyal to F&J, established the company Lemnking Wood Investment SRL, also in Pârscov, Buzău, and the committee of creditors of Lemnking Industry Com SRL, a company in insolvency, “approved (in September 2012 – n.n.) the conclusion of a lease agreement with SC LEMNKING WOOD INVESTMENT SRL, whose subject was: C15 – hall, built surface of 883,07 sm; C16 – dryer, built surface of 510,19 sm”. In other words, the debts amounting millions of euros would remain on the insolvent company and the activity would carry on a new company, free from toxic liabilities. During the past three years (2017 – 2019), Lemnking Wood Investment SRL, although active, did not carry out any kind of activity. However, in the end the reorganization plan of Lemnking Industry Com SRL failed and the company went bankrupt. Lemnking, a Chinese business scam on repeat Right before Lemnking Industry Com SRL became insolvent, F&J European Investment Development SRL and the Chinese citizen Gao Lei established (also in Pârscov, Buzău, obviously), the company Lemnking Manufactory SRL. In October 2014, F&J European Investment Development SRL, which became a sole associate, ceded all its shares to Yong Sheng Forest Industry Filiala București SRL (whose major shareholder was Shaanxi Yongsheng Forest Development Co Ltd, Chinese company), company that took it upon itself to declare that it had no activity in year 2018, the year of its establishment. According to the website dedicated to the operations in Romania carried out by the Chinese group F&J, “LEMNKING, part of F&J EUROPE, is a private capital company specialized in wood processing which entered Romanian market in 1996 through a consistent green field investment. With headquarters in Bucharest (Romania’s capital), LEMNKING has established its production facilities in Parscov, Buzau County: - near to the one of the most important forest districts of Romania, the most important beech forests in the country, source for the best quality logs; - near to the main port Constanta, Romania. This is an important logistical advantage. The factory covers a surface of over 260,000 square meters and has developed modern production, transport and storage facilities, including a large kiln drying capacity of 32 kiln driers”. According to the data of the Ministry of Finance, Lemnking Manufactory SRL registered revenues of 7 million lei in 2019 (1.5 million euros) and a loss of 1.9 million lei (400.000 euros), with 50 employees.

Belt and Road Forum in 2017 (source: brookings.edu)
Investigații

Chinese group F&J in Romania

The Chinese group F&J has been present in Romania for over 20 years. AT least according to their own website: “F&J Europe, part of F&J Group, began operation on Romania market in the mid 90′s, forming one of the group’s strongest profit centres. Focused on the same businesses – timber, electronic products and household appliances, energy investments, construction and cigarettes producing, but also exploring new opportunities, F&J Europe soon becomes a solid production base and distribution centre.” The official presentation of the Chinese group F&J in Romania The previously quoted website mentions three Romanian companies owned by F&J: Lemnking Manufactory SRL (see the dedicated article), China Tobacco International Europe Company SRL (see the dedicated article) and F&J Europe Industry Park. Furthermore, the F&J official website, the .ro version, presents the activity of F&J Europe Industry Park: “F&J Europe China Enterprise Pack (ECEP) was set up since 2007 which is the year Romania join in EU. As a Comprehensive Chinese background service company, ECEP take the goal of help more and more Chinese company enter the EU market as our own duty, provide all-around services which are included from set up company to distribute production and accounting law support. ECEP is located in Parscov Buzau county Romania, near E60 road. ECEP has a surface of 320000 m2, 6500 m2 of professional warehouse, total investment 50 million EURO. Welcome to Romania! Welcome to ECEP! We will prepare everything well for you, we will be the strong support for your business in the EU!” F&J, just a cover name However, in official documents, things are very different. First of all, there is no company called “F&J Europe Industry Park” in Romania. And there never has been. The main commercial vehicle through which the Chinese operated in Romania was the Chinese company Shanghai F&J Investment and Management Co Ltd. This was responsible for establishing several companies in Buzău. Among them, Vortex International Group SRL in Pârscov, Buzău (initially named Vorton Lighting Industry SRL), F&J International SRL (Pârscov, Buzău), F&J European Investment Development SRL (Pârscov, Buzău), F&J Greenenergy Environment Development SRL (Pârscov, Buzău). None of them still exists. Vortex International Group SRL was deregistered in 2011, F&J European Investment Development SRL and F&J Greenenergy Environment Development SRL – in 2018, and F&J International SRL in 2019. The last three were deregistered after being legally dissolved: “requirements regarding the headquarters are no longer complied with, as a result of the expiration of the document attesting the right to use the location appointed as headquarters or the transfer of the right of use or property on the location appointed as headquarters, inclusively”. Therefore, the four companies established by Shanghai F&J Investment and Management Co Ltd – despite the fact that the Chinese are bragging about having an industrial park in Pârscov, Buzău – were left without headquarters and thus were legally dissolved. The ghost headquarters It is no coincidence that Lemnking Manufactory SRL and China Tobacco International Europe Company SRL are no longer connected to any of the deregistered SRLs, the shares belonging to the two companies being transferred to certain active companies. In these circumstances, it is completely unclear who now owns the buildings that, on its website, the F&J group claims as belonging to F&J Europe Industry Park (company which, as earlier established, does not exist in Romania). Judging by one of the pictures, which shows an office building with the name VORTEX on it, we can assume that it belonged, at some point, to the company Vortex International Group SRL (now deregistered). At any rate, in Romania, the Chinese group F&J is a mere empty shell, far from the objectives proposed by its mother-company almost 30 years ago, according to the international website. “F&J Group was founded in Europe in 1992. After more than 20 years of development, it has formed an integrated financial service as the engine, industrial investment and integration as the cornerstone, investment and consulting services as the value enhancement, and international asset management and operation as the steady development. (...) Strategic goals F&J Group, with strategic foresight always adheres to the management theory of stable development and rational investment. In overseas markets, F&J Group becomes the partner of Chinese enterprises who want to invest and merge at aboard with mansion of international exploration and practice of Chinese enterprises, by its practical experience in overseas investment and making full use of business and government resources in overseas. (...) F&J International’s strategic layout is based on Shanghai, China and London, as an international investment and consulting operation management centre and technology innovation value-added service platform, radiating the EU market; with Xi'an as an integrated financial service and Slugu production and melting demonstration base, radiation Western China; Romania is the integrated financial service centre and overseas production and processing base and procurement centre, radiating the Central and Eastern European markets. F&J International is committed to giving full play to the geographical advantages of Xi'an at the new starting point of the Silk Road, with an international offshore innovation centre as an overseas platform, establishing an international investment service system, seizing the market opportunities of the China International Import Expo and creating an international development. The Slugu innovation model establishes the image of the innovation and development benchmark of the “Central and Eastern Europe 16+1” strategy under the national “Belt and Road” strategy. To build a platform for overseas and eastern capital investment in the western industry's industry and finance operation, and become a partner of Chinese companies' EU investment and international mergers and acquisitions. F&J International's strategic goal is to become an influential international asset management and operation company of the Silk Road economy.”.

Solar park in Satu Mare (source: adevarul.ro)
Investigații

Chinese solar parks in Romania

Two Chinese men established a small group of companies operating in the field of renewable energy in Romania. But the Chinese solar parks in Romania are not big business. Zhang Chi owns Enertech Sun SRL, while Gao Jianjun – Euroasia Sun SRL. Most often operating together, the two own a few other companies activating in the field of solar energy. The companies are: Kentax Energy SRL, Reinvest Urziceni SRL, RC Development DVA RO SRL, Nord Solar Doba SRL, Ligovig Sun SRL. Citește și: No social-democrats in power, no success for China The first three manage photovoltaic parks in Bobicești, Olt, and the last two – in Satu Mare county (Doba and Acaș). Financial loss for the Chinese solar parks in Romania In 2018, the last financial year made public by the Ministry of Finance, the revenue cashed in by each of these five companies varies between 1,6 (300.000 euros) and 5,1 million euros (1,1 million euros) and all have losses. However, in 2019, Enertech Sun SRL had revenues of 6,3 million lei (1,4 million euros) and a net profit of 3,7 million lei (800.000 euros), with four employees. The Euroasia Sun SRL partnership gained revenues of less than 160.000 lei in 2018 (35.000 euros) and losses of almost 130.000 lei (less than 30.000 euros).

China Tobacco International Europe Company SRL (source: occrp.org)
Investigații

China Tobacco International Europe Company SRL

China Tobacco International Europe Company SRL (registered in Ilfov) is owned by companies registered in China. Which are as follows: China Tobacco Anhui Industrial Corporation (62%), Hongta Tobacco Group Co Ltd (Trust) (25,6%) and China Tobacco Shaanxi Industrial Co. Ltd. (12,3%). Big investment in China Tobacco International Europe Company SRL According to the company’s website, “China Tobacco International Europe Company, hereinafter referred as CTIEC is the only manufacturing plant of China National Tobacco cigarettes in Europe and so far the largest investment project in Romania owned by the Chinese government. In the CTIEC project of foundation from Romania, the Chinese government has invested a capital of about 40 million dollars, of which China National Tobacco holds 97.50% share”. Citește și: No social-democrats in power, no success for China The same source indicates ambitious plans for the Chinese cigarette factory in Romania. “Our Company takes Romania's neighbouring countries, the Middle East, the Balkan countries and North African markets as expanded focus and market base and explores new markets in all areas by drawing upon the experience gained from key points to achieve sequential development. These expansion areas are also gateways for exporting an increasing amount of goods to remote overseas markets in South Eastern and Central Asia, Western Europe, and Southern Africa.” The kings from Buzău Until October 2019, 0.76% of the shares of China Tobacco International Europe Company SRL were owned by Lemnking Industry Com SRL (Buzău). A company which withdrawn from the shareholding of the cigarette manufacturer after going bankrupt. In turn, Lemnking Industry Com SRL is owned by Shanghai F&J Investment and Management Co Ltd and three individuals. The Chinese nationals are connected, in one way or another, to the Chinese group F&J. At the beginning of 2012, Lemnking Industry Com SRL was mentioned by DNA prosecutors in a case very well-known at the time. It was about an extensive network of corruption in the port of Constanța (see details in the article dedicated to Lemnking). The network included a senator and the Secretary General of the Ministry of Interior of that time. The high-profile of the latter was the only thing that kept the Chinese-owned company from being noticed by the media. Furthermore, F&J, the Chinese group owning Lemnking Industry Com SRL, assumes parentship over China Tobacco International Europe Company SRL, as provided by the group’s website. “In 1997, China Tobacco Corporation, Shaanxi Tobacco Company and F&J EUROPE established the joint venture company in Romania. In 2005, the company increased the investment with three million US dollars, The HONGTA Group, China Tobacco Anhui Industrial Corporation joined as the new shareholders also.” Smaller and smaller profits After years of obtaining profit, the fiscal year 2019 was the first year of loss for China Tobacco International Europe Company SRL, as shown by the data of the Ministry of Finance. In year 2017, the company’s net profit was of 9.6 million lei (over 2 million euros), with revenue of almost 77 million lei (almost 17 million euros), with 166 employees. The following year, 2018, the net profit was half of the one gained the previous year – 4.8 million lei (little over 1 million euros), with revenue of 97,6 million lei (almost 22 million euros), with 179 employees. In 2019, the revenue was only 54,3 million lei (over 11 million euros), and the loss was of 7 million lei (1,5 million euros), with 175 employees. Also a relevant indicator, showing that things are not exactly going well for China Tobacco International Europe Company SRL, is debt. In 2017, the debt level was 68 million lei (almost 16 million euros). In 2018, it increased dramatically, to over 121 million lei (almost 27 million euros, with 5 million euros more than that year’s revenue). In 2019 it dropped to almost 97 million lei (20 million euros). Debt and smuggling for China Tobacco International Europe Company SRL Therefore, the company’s future is not bright: CTIEC began 2020 with a 1,5 million euros loss from the previous year, debt amounting to 20 million euros and forecasted revenue of only 11 million euros (if nothing changes compared to 2019). In the recent past, the company has also faced alleged smuggling operations scandals. According to Satu Mare (county located in the North-West of Romania, on the Ukrainian border) media reports, “the Dubliss brand belongs to China National Tobacco Corporation, through the company China Tobacco International Europe Company SRL, registered in Romania. The brand was launched in our country in 2008, being then sold in Russia, and Ukraine respectively. It has been a few years since Dubliss cigarettes with Romanian tax stamp became unavailable in markets in our country. (...) What is interesting is the fact that most (...) Dubliss cigarettes sold in markets in Satu Mare county have Ukrainian tax stamps, a clear indication of the country of origin of those cigarettes.”

China CEE Fund management (source: china-ceefund.com)
Investigații

Chinese investment fund CEE Equity Partners

The Chinese investment fund CEE Equity Partners “performed the payment towards Brise Group, one of the largest agribusiness groups in Romania, within the transaction announced in April, for modernizing and developing the grain silos belonging to the Romanian group. Part of the sum (25 million euros) are directed towards the new company established by Brise in partnership with CEE Equity Partners, while the other, 35 million euros, was granted for the targeted investments”, wrote ZF at the end of July 2019. The Competition Council report The newly-established company mentioned by ZF is Bristol Logistics SA. Over 76% of it is currently owned by Rishima Limited, an off shore company in Cyprus. A report issued by the Competition Council in September 2018 shows that Rishima Limited is the Chinese investment fund: Citește și: No social-democrats in power, no success for China “The fund II China CEE acquired direct control over Bristol Logistics S.A. and certain assets from the Brise Group. Bristol Logistics’ main object of activity was storage. This company carried out no commercial activity between 2016 and 2018, and will provide services auxiliary to cereal trading, such as storage, weighing, smoking, drying etc.”. China Exim Bank in the Chinese investment fund CEE Equity Partners In the same document, the Chinese investment fund CEE Equity Partners is mentioned. The Competition Council also showed that “Funds I and II China CEE are investment funds, controlled by the Export-Import Bank of China (the China Exim Bank)”. And also that “Fund I China CEE operates on the Romanian marked through Flash Lighting Services S.A., company acquired in year 2018. The company’s main object of activity is represented by electrical installation works. It carries out activities such as designing and implementing energy efficient lighting solutions in Romania”. The two economic operations are mentioned by the Competition Council in a discussion regarding the China CEE Group acquiring, through Gardenica Limited (“wholly owned by China Central and Eastern Europe Investment Co-operation fund II SCS SICAV-SIF (...) hereinafter referred to as the II China CEE Fund”), Pasteur – Filiala Filipești SRL, Farmavet SA etc. (see dedicated article).

Prime Minister Viorica Dăncilă attends the reception marking the National Day of the People's Republic of China (source: gov.ro)
Investigații

Contract almost awarded to CCC by SDP

Contract almost awarded to CCC: the fate of an infrastructure project worth 1,36 billion euros, carried out by a Chinese company (in partnership with a Turkish one), was decided by a motion of no confidence. On October 10th, 2019, the government led by Viorica Dăncilă was dismissed through the vote of Romanian parliamentarians. Three days later, on October 13th, the Minister for Transport of that government (in office until the investiture of the new government), Răzvan Cuc, announced that the signing of the contract was a mere formality. Comarnic - Brașov highway, contract almost awarded to CCC He was referring to the project of the Comarnic – Brașov highway, which the Dăncilă government decided to carry out in a public-private partnership. Following the procedure for selecting the private partner, the winner was deemed to be the consortium formed by China Communications Construction Company Ltd (China) and Makyol Insaat Sanayi Turizm (Turkey). Also read: No social-democrats in power, no success for China “Next week I am submitting the contract so it can be signed by the National Commission for Strategy and Prognosis (authority appointed to complete formalities – n.n.). The Contract must be approved by a Government decision. Should we (the Dăncilă government – n.n.), be able to pass it, we will, if not, we will lay it out for the next Government”, said Minister Cuc three days after the dismissal of the cabinet he was a part of. Dăncilă out, Orban in However, the Government Decision was not passed by Prime Minister Viorica Dăncilă so the contract was almost awarded to CCC. After his investiture, the new Prime Minister Ludovic Orban, made a foreseeable move (given the objections raised by the opposition of the Dăncilă government with regard to the choice of a public-private partnership for the project, instead of accessing European funds for large infrastructure projects): he cancelled the entire procedure and decided that the project would be funded from European funds. According to a document drafted by the new government, the project would be financed by LIOP European funds (Large Infrastructure Operational Programme) and would cost 1.2 billion euros (VAT included). According to the document quoted, in this scenario the 52 kilometres of mountain highway would be completed within 5 to 6 years (2025 – 2026). For the time being no procedure for appointing the constructions was initiated.

DeFapt.ro
Investigații jurnalistice, analize, știri la zi
Abonează-te
DeFapt.ro

Ultima oră

Ultima oră