Transgaz manager seals 1.2m-RON contract with his own company

Transgaz Medias (TGN) last month signed a contract worth 1.2 million RON excluding VAT for transportation services with BAT Medias (BAME), held by the very general manager of the natural gas transmission company, Florin Muntean. He holds 77% of BAT Medias and was appointed at the helm of Transgaz around six months ago. Transgaz on the other hand is state-held. The transaction was reported on the Stock Exchange, where Transgaz is listed, with stock exchange regulation requiring that investors be informed about any transaction conducted by a listed company with insiders or with people within the group. The contract was awarded to the company held by the Transgaz manager in a public tender, reads the report. Florin Muntean could not be contacted for comment yesterday. "If this is an auction we are talking about, which should be a transparent procedure, then this was the best choice for Transgaz," believes Mihai Ion, head of Raiffeisen Asset Management. Over the last few years, BAT Medias has seen its turnover constantly rise, and reach 23.6 million RON (5.7 million euros) in 2009, with the company boosting its net profit by 91%, to 6.4 million RON (1.5 million euros) last year. Transgaz posted a 298.6 million-RON (70.2 million-euro) profit last year and a 1.18 billion-RON (277 million-euro) turnover.