Bucharest Court of Appeals rules the cancelling of decisions to set up municipal companies. Mayor Gabriela Firea – the decision will not take effect

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The Bucharest Court of Appeals ruled on Thursday to cancel all the decisions to set up the municipal companies. The ruling is final and comes at the end of a lawsuit initiated by USR Bucharest.

The Bucharest Court of Appeal court thus decided to annul the decisions to establish the 22 companies in March last year.

Concretely, the sentence does not involve the closure of companies, but it shows that these companies were unlawfully established, digi24.ro reports.

Until the situation is remedied, if a remedy is found, these companies will completely blocked. The employees cannot receive their salaries, they cannot make payments, they cannot collect bills, no work can be done, the same source reads.

“The Bucharest Court of Appeals has today decided to repeal all the decisions to establish the municipal companies. The solution is final and comes at an end of a court case initiated by USR Bucharest in 2017. The USR municipal councilors challenged the establishment of these companies on the grounds that the decisions were illegally adopted. More specifically, they were adopted by the vote of half plus one of the total number of councilors, and not by the two-thirds vote, as would be needed for such projects that concern the patrimony of the capital city,” USR Bucharest President, Roxana Wring, wrote on Facebook.

Mayor Firea – the decision will not take effect

Bucharest Mayor Gabriela Firea (photo) said after the Bucharest Court of Appeals decision that the structures still exist and the solution, which she sees as an error of interpretation, will not have effect on the companies.

“The decision made yesterday will have no effect. No reference is made to cessation of activity, it is only stated that the founding act should have been voted by two thirds of votes, not by half plus one. In order to disband them a new lawsuit would be needed. There is no legal and financial logic. These companies are not illegal. The court did not say that. I think the judges have been misled, have not received all the information. The companies were not given patrimony,” Gabriela Firea said.

The mayor argued that the disbanding of these companies would block the city.

“We admit that for us this decision is at least surprising, if not shocking, given that we have so far been successful in other similar court cases. When making these decisions regarding establishment and during the lawsuit we had the written confirmation of some professors – university professors with reputation in this field, that the adoption of these decisions was made in strict compliance with the law. (…) However, it seems that a Romanian court has ruled that almost all decisions in the Local Councils and the Bucharest General Council can only be adopted by a majority of two-thirds, such interpretations are  likely to led to the complete blocking of the city’s operations,” a press release issued by the City Hall reads.

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