Photo: Inquam Photos / Octav Ganea

Prosecutors are picking up documents from City Insurance. ASF official: Some of the reasons for the decision to withdraw the authorization are “shocking”

Prosecutors and officers from the General Prosecutor’s Office picked up, on Thursday morning, documents from the headquarters of City Insurance, the company for which the Financial Supervision Authority filed for bankruptcy. At least three criminal complaints were filed in the case of the company that was the leader on the RCA market, with 3 million policies.

The descent takes place in the case started at the level of the General Prosecutor’s Office after the current management of ASF made a complaint in which it complained about a series of problems related to the way the management of the insurance company complied with the legislation.

The complaint concerned in particular the loans made by the company to several banks in Switzerland, which are suspected of being fictitious. The investigation takes place in rem.

There are still two criminal cases related to City Insurance – a complaint to DNA related to a favor of the company by the former management of ASF and one to DIICOT, filed by City shareholders against those who managed the company’s Romanian business.

Daniel Apostol, ASF’s communications director, told Digi24 that the Authority’s decision to withdraw the operating license for City Insurance will be published in the Official Gazette today.

“You will discover all the details that were the motivation for this decision, some maybe even shocking. We assure the public that ASF only wants to respect the laws of the state “, he said.

“After the publication of these documents, all the public opinion will take note of the facts that were the basis of the decision to lift the operating decision,” said Apostol.

“ASF is now watching over the way in which the Insured Guarantee Fund organizes its activity and based on the GEO that the cabinet adopted yesterday,” Apostol added.

Coverage of the amounts required for compensation in the case of City Insurance should not be made from public money, in case of fraud, and if the existing amounts at the level of the Insured Guarantee Fund (FGA) are insufficient then money would be needed. borrowed, Finance Minister Dan Valceanu said on Wednesday. 

“I want to tell you that in principle I do not agree, especially given that it turns out that there was a fraud here, with the coverage of frauds from your money and ours. I mean with money from the state budget. I think the amounts must be recovered from those who committed the fraud and if there is a situation where, I know, there is a need for extra money to come to this Fund, I believe that you can only grant this money as a loan, after which But let’s see if we get into this situation and I repeat what I said, I don’t think we should finance fraud from our everyone’s money “, said Dan Vîlceanu, asked if he has a solution in case they are not covered all expenses.

The Minister of Finance specified that at this moment he does not know if the funds held by FGA are sufficient to cover all the requests.

“I want to tell you that other bankruptcies are still being paid from the Insured Guarantee Fund at the moment. Payments to all insured persons from previous bankruptcies have not been completed, but so far I have no information to tell you that the Fund will It remains to be seen how many policyholders will register, the pace at which they will register and how this Fund will be consumed “, said Dan Vîlceanu.

Asked if anyone should be politically responsible for this case, given that the FSA has a politically appointed leadership, he replied that the decision belongs to Parliament.

“You put an end to it because, as you said in the question, the leadership of the FSA or the FSA as a whole is an institution under parliamentary control. From this point of view, it is up to Parliament to draw the necessary conclusions and decide whether blame the ASF leadership or if, please, I want to wait for the criminal investigations that I understand have been launched and decide on those investigations “, said Dan Vîlceanu, mentioning that he is” convinced that in the Parliament the ASF leadership will support a report or come up with explanations “.

Regarding the criminal investigations against the company, Vîlceanu stated that he read in the press that there is a complaint made by the ASF management since January in connection with City Insurance and that the company’s shareholders have made a complaint to DIICOT regarding City Insurance employees.

“We are talking about the possibility of fraud because we cannot currently accuse anyone of having committed fraud as long as there is no final decision of a court. But there are elements that of course make you think. Here we are talking However, we are talking about a system that involves reinsuring all the policies you have concluded and in the conditions in which all things would have gone according to the law and according to a correct and prudent management of the situations. “I think it would have gotten here. It remains to be seen. I want to tell you that I am not the head of the Public Ministry. The investigations are being carried out by the Prosecutor’s Office, or pleaseThe prosecutor’s offices notified in my attributions as Minister of Finance or through the attributions of Minister of Finance come with such normative acts through which I can make sure that people receive their money from the Guarantee Fund which is specially destined for such situations “, explained the Minister of Finance.

He also added that if the fraud is proven through a legal procedure then the Guarantee Fund must recover the amount granted, writes Agerpres.

On September 17, the Insurance Supervisory Authority decided to withdraw the operating license of the Insurance-Reinsurance Company City Insurance, also requesting the opening of bankruptcy proceedings against the company.

In the period 2014-2021, ASF imposed on City Insurance SA, but also on the company’s management, several sanctions, respectively fines totaling 18,736,666 lei, as well as issued a decision to increase the solvency capital applied to the company of 16,500,000 Of euro.

City Insurance SA is the main Romanian insurer, with a market share of 17%. It was founded in 1998 by a group of investors and is headquartered in Bucharest. The company has 400 employees and 42 offices and subsidiaries, offering a wide range of non-life insurance.

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