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UZTEL – the backstage of a programmed bankruptcy / APH EXCLUSIVE

Written by Administrator  | Created on Friday, 10 February 2012 17:39  |  Category: English page
uztelA new victim of the never-ending post-revolutionary "transition" is UZTEL, a well-known manufacturer of oilfield equipment. The factory from Ploieşti has come to tragically end its tumultuous history of more than 100 years after the Prahova Courthouse, i.e. Civil Division 2 – Administrative and Fiscal Legal Department, decided on October 17th 2011 to initiate the bankruptcy procedure. Actualitatea Prahoveană exclusively reveals the epopee of this managerial disaster that threatens to leave over 600 workers without jobs.

The decision of the Courthouse represents a strange outcome for a factory such as UZTEL: the only solution was to close down a company with a turnover of millions of euro. How has it come to this since the factory in Ploieşti has more than 600 employees and exports in numerous countries all over the world? What determined the magistrate to pronounce unequivocally the bankruptcy of a factory with profitable commitments and orders?

Last years management and the road to insolvency

After making a stand against Americans, communists and the dark '90s, UZTEL totters on the brink of the grave after the successful "privatisation" during the Năstase government. UZTEL caught the most dangerous virus: the parasitic one, as various raw material suppliers started to sell the company all that was necessary to carry out production in optimal conditions. At "fair" prices, of course!
Sources within the company stated that the majority of raw material suppliers represented the perfect cover for the wellfare of certain employees in managerial or shareholding positions.

The classic money-making scheme

The scheme of a "family" contracts is simple: a shareholder from UZTEL sets up a company. The shareholder is both the administrator of the company and an UZTEL employee. The newly founded company sells, by pure coincidence, of course, exactly the things that the producer of oilfield equipment needs.

The conflict of interests generates profit for the parasite company, and loss for UZTEL as the sold goods are purchased at prices three times higher than those on the market. Since perspective is necessary in any situation, the owner of the parasite company subscribing to the money coming from UZTEL sets up some off-shore companies in fashionable places, such as Cayman, the Virgin Islands, Delaware.

The trophic chain of the immoral relation with the budget of UZTEL continues: the company sells over-rated raw material to UZTEL, UZTEL barely manages to buy it, and then it sells the finished goods to different offshores at under-rated prices. Everybody wins, except for UZTEL, which in 2010 was unable to continue making its payments.

For the moment we provide a sole example: the factory currently owns a stock of bearings of 25.000 units which were purchased from one of the partner companies. The order initially contained a much bigger quantity. According to inside information, UZTEL would never use a quantity larger than 1.000-2.000 bearings a year. The former management purchased 35.000 units foreseeing a bearing global crisis in the near future.

The company functioned in this manner until 2010 when the former administration board went to court to claim the onset of insolvency. The debts of UZTEL could no longer be paid making the company unable to function.

Audit without appeal

An audit report prepared at UZTEL for 2010 shows that 39% of the company's turnover was held by companies affiliated to the factory.

The whole story HERE