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Moldovan state takes control of bus stations amid legal dispute

The enterprise "Railways and Bus Stations" is reverting to state control. The Public Property Agency (APP) has announced that it has commenced the process of unilaterally taking over the assets managed by the economic agent with whom the state signed a contract in 2018.

This contract stipulated the modernization of railways and bus stations. According to the APP, since the modernization has not occurred, the agency has established a commission to oversee the asset takeover.

In response, the private company has deemed the APP's decision illegal and has challenged it in court. The situation has caused a scandal at the headquarters of "Modern Bus Stations," where commission representatives arrived to initiate the asset takeover process.

The company's lawyer stated that, although the order for asset takeover was signed on August 12, the company was only notified yesterday. He describes the APP's actions as abusive and illegal.

"The private investor will assert his rights in court and file a complaint regarding the abuse evident in both the actions of the Agency’s director and those of the individuals sent by APP to carry out this action. We deem the Agency's actions illegal," said Andrei Iosip, lawyer for "Modern Bus Stations."

Roman Cojuhari, Director of the Public Property Agency, rejects the economic agent’s accusations. He further asserts that the investor failed to meet the contractual obligations, which included guarantees of 5 million lei for each investment year, a guarantee not provided from the third year onward.

"The order for the takeover of the stations has been issued; the Commission must perform its duties as per the order and take over the goods and assets for state administration. APP adheres strictly to the procedures and contractual terms, thus there is no abuse or legal violation," declared Director Cojuhari.

It is important to note that on December 17, 2018, the state signed a 25-year concession contract with SRL Modern Bus Stations. According to the contract, the private partner was obligated to modernise 30 railways and bus stations within a period not exceeding three years.

In June 2022, it was discovered that the economic agent had invested fewer resources than required. Consequently, in August 2022, the Public Property Agency announced the termination of the modernization contract with SRL "Modern Bus Stations."

The Employers' Association of Road Transport Operators has welcomed the authorities' decision to regain control over the state-owned bus stations, noting that this action should have been taken in 2022, when the partnership contract was terminated.

Translation by Iurie Tataru

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