Scrutiny of Moldova’s Energocom financial management

Moldova’s state energy company, Energocom, has come under scrutiny regarding its financial management and administrative spending. Initial controversies centered on high headquarters rental costs, which reportedly exceeded 500,000 lei per month, leading the company’s board to decide to terminate its current lease and relocate.

Political scrutiny has intensified regarding the company’s use of liquidity. Deputy Ion Chicu has requested specific details on the maturity period of approximately 360 million lei invested in state securities (VMS). Chicu noted that while investing surplus liquidity into short-term instruments can be a logical move, he questioned why such large volumes were held, especially given that the company receives state-guaranteed financing from the European Bank for Reconstruction and Development (EBRD) for gas procurement. He stated that if funds were frozen for short periods, such as 91 days, the move is justifiable, but longer durations would require explanation as to why the capital was not used for gas purchases.

MP Alexandr Berlinschii of the Our Party has further criticized management, alleging that 400 million lei were mismanaged by being placed in state securities rather than being used to procure natural gas at more advantageous prices during the spring. Berlinschii argued that a more strategic approach could have lowered consumer prices from 26 lei to potentially between 18 and 20 lei. He characterized the management decisions as unprofessional, likening the government’s crisis response to ‘firefighters’ who only react after a crisis has begun. Energocom has maintained that its decisions are part of its broader gas procurement and seasonal supply strategies.