Hassan Awdi story in Romania -Rodipet -ICSID World Bank- CFR messageries - Story of an Investor

8/10/2019 Hassan Awdi story in Romania -Rodipet -ICSID World Bank- CFR messageries - Story of an Investor

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HASSAN AWDI VS ROMANIAInvestor story in Romania for 23 years .RODIPET WORLD BANK ICSID ARBITRATION CASEOverall Chronology

YEAR 1992Creation of the Awdi group, an American-Lebanese investment group based inRomania. With an initial base in Romania focused on computer electronics, the

Awdi group will in the following years expand in the USA, Brazil, Iraq, Lebanon,Syria, with small operations in Europe and Asia, while extending its activities toreal estate, hotels, phone/IT, shopping centers and press distribution.

the Romanian economy was being rebuilt after the fall of communism. Mr. Awdiwas attracted by Romanias newly liberalized economy that offered the potentialand stability of a nation that was aspiring to join the European Union.

played a key role in the development of Romanias post -communist economyand completed several landmark commercial projects over nearly 17 years. Bothdirectly and through his wholly-owned companies Enterprise BusinessConsultants and Alfa El or other companies, Mr. Awdi invested considerableamounts of money in the Romanian economy, including in real estate, import-export, trading as well as in press distribution, tourism, leisure and hospitality,which are at the heart of this dispute. Mr. Awdis investments made him one ofthe largest foreign investors in Romania and his investments have been valuedat hundreds of millions of dollars.

invested in Romania where they have been living and working for many years,

including Mr. Awdis brothers Mehdi, Hussein, Moh amed and Jamal. Theirinvestments, which are independent and unrelated to those subject of thearbitration initiated by M. Awdi with the ICSID, have been mainly focused on realestate, leisure and hospitality and commercial retail. The Awdi family thereforebecame a key player in the Romanian economy, employing thousands ofRomanians and creating hundreds of new job opportunities in numerous projectsacross the country.

YEAR 1994Hassan Awdi, president and CEO of the Awdi group, is one of the foundingmembers, with other expatriate businessmen, of the International School ofBucharest.He is one of the 11 founding members of the US- Romanias chamber of commerce.

YEAR 199522 Jun e 1995 Romania requests to become a member state of the European

Union.

YEAR 1997


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Hassan Awdi partners with Orange Romania and enters the GSM business.As the Romanian privatization process begins, the Awdi Group starts participating in theprivatization process, by acquiring some formerly state-owned companies.

YEAR 1999

10 Decemb er 1999 . Romanian opens accession negotiations with the EuropeanUnion.

YEAR 2003Rodipet SA, a Romanian state-owned monopoly for press distribution, launches a publicbid in the context of the privatization process. The companys core business includes anationwide network of news kiosks, which are regarded as highly strategic assets ashighly visible locations to place advertisements and political campaign materials.

23 December 2003 . Rodipet SA is bought by Magnar, a Romanian companyowned by Enterprise Business Consultants (a U.S. company wholly owned byHassan Awdi). The privatization contract sets up obligations for Magnar and the

Authority for State Assets Recovery (AVAS). AVAS will remain monitoring Rodipet SA 5 years, i.e. until 31 July 2009.The privatization contract is validated by both the Romanian government andparliament and fully complies with Romanian privatization law and practice.Obligations arising from the privatization contract include:1-For Magnar:

- Investing in the company,- Investing 3.750.000 euros over the next five years (until 2009)- Keeping Rodipet 3200 employees for 5 years .- Signing a protocol with the Romanian press club to ensure distribution ofthe Romanian press, all publications being treated the same way nomatter their commercial value

2-For AVAS- Cancelling existing tax debt and other debts- Ensuring the adoption of law granting Rodipet SA with the opportunity toaccess land concessions for its kiosks for free for 49 years. This obligationis written in the privatization contract. The prospect of such land monopolyis instrumental in Magnars group decision to buy Rodipet SA. In fact, thismonopoly ensures optimized revenues from kiosks once they are allrenewed and modernized, and therefore and a very good return oninvestment - estimated to hundreds of millions of dollars over the periodgoing from 2004-2014- Ensuring that Romanian press club keeps all contracts to date withRomanian institutions, or improve the provisions of these contracts overthe next 5 years

YEAR 2004


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Creation of the Rodipet group, designed to be an integrated press network. TheRodipet Group grows to include the following companies:

- Rodipet SA (press distribution)- IntelBiz Solutions (software, hardware and e-vouchers)- Rodipet Courier (car fleet)-

Supremo Media (outdoor advertising and financial services)- Mobille Affiche ( truck advertising)- Balbeck (opening of 24 shops)- Rodikiosks (commercial contracts and the development of new kiosks)

Awdi group started a major investment program in hundreds of millions of Euroswith one single objective , making Rodipet group companies major leading in theRomania economy with the hope to be listed on London and European stockexchange .

15 JUNE 2004 . Successful end of EU accession negotiations for Romania.

28 October 2004 . Law 442/2004 is adopted to complete the privatization ofcompanies in the portfolio of the Authority for Privatization and Management ofState shares and consolidation of privatization.Amongst other purposes, this law enables Romania to fulfill its obligations as a result ofthe 2003 privatization contract selling Rodipet SA to Magnar, with regards to debtscancellation and access to free land monopoly for kiosks (Point 19 of the law).

YEAR 2005 25 Apr i l 2005 . The European Council approves Romanias EU accession.

YEAR 2006A leading press group seeks to buy Rodipet, but Magnar rejects the offer. Subsequently,Hassan Awdi and his business are subject to a 3-month reputation-bashing campaign bymedia belonging to this group .

11 May 2006 . An extensive and aggressive report is released into leadingRomanian outlet Septemana Financiara on the Awdi family, alleging, withoutproviding evidence, that Hassan Awdi and family were setting up dummycompanies, supporting terrorism, stealing Rodipet SA, or using US state ofDelaware as tax haven. The report describes the Awdi groups activities inRomania as opaque and calls for action from Romanian authorities.This unsubstantiated report may be considered as the opening of the reputational caseand reputational bashing against Hassan Awdi. It will give grounds to the opening ofinvestigations against the Awdi group and his owners in Romania a few years later. TheRomanian authorities then launched a criminal investigation for terrorism chargesagainst certain members of the Awdi family in Romania. This criminal investigationremained however dormant for years. For almost four years, from June 2006 until theend of 2009, the investigation produced no more than a handful of witness depositions.


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Almost no inquiries were ordered or carried out, no documents were seized, and noresearch was made. During that period, not a single person was subjected to anymeasure of any kind, whether a restriction of movement or otherwise.

YEAR 20071 Janu ary 2007 . The accession treaty making Romania a member of theEuropean Union enters in to force.This is the positive outcome of a process started 12 years before.With the EU accession, Romania hopes to boost its economy and become astrategic regional leader in the Southern European region, thanks to its positionnear the Black Sea and close top key energy supplying countries.

As an EU member state, Romania shall meet all the criteria defining membership to theEuropean Union, as developed on the occasion of the Copenhagen European Council inDecember 1993. The first of these criteria is member states ability to offer stable

institutions that guarantee democracy, the rule of law, human rights (as per article 6 and

article 49 of the Treaty on the European Union).

YEAR 2008 A well-connected business press group highly involved in local politics offers tobuy Rodipet. Rodipets owner Hassan Awdi refuses proposed price in order topursue the development of Rodipet and its activities, as a means to get a fairreturn on his initial investment.

20 January 2008 . IntelBiz, member of the Rodipet group, issues a recruitmentannouncement, targeting non-Romanian nationals due to a workforce shortage inRomania following EU accession; indeed, the progressive opening of frontiers

has attracted Romanians beyond their borders and many of them seek to work inother EU capitals.For non-Romanian nationals, the announcement offers the following benefits;house, work visas lasting from 3 to 6 years, travel costs, medical insurance,attractive net salary and bonuses based on results, career opportunities within aEuropean Union-based company.15 Honduran nationals are invited by IntelBiz to join Romania to be trained andemployed by this company. The procedure is conducted in agreement with Romanianimmigration authorities, who are informed of the program at all times. These 15Honduran nationals will yet be arrested by the Romanian immigration police, without

any legal grounds, later in 2008.July 2008 . The Romanian supreme Court in four contradicting decisions withfew months by the same judges cancels law 2004/442, granting Rodipet SA withthe opportunity to access land concessions for its kiosks for free for 49 years(+25 years). Rodipet is therefore stripped of its main asset from abusiness/financial perspective: the 49 years (+ 25 years) concession.


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YEAR 2009 A third attempt from a leading Romanian business group to buy Rodipet is againrejected. Indeed, the offer consisted in setting up a joint venture with Rodipet SAsownership in order to get 50% of the company for free.

6 February 2009 . In an article released in DailyBusiess.ro , the Awdi Group islisted amongst the top 25 most influential business entities in Romania, togetherwith other major groups.

March 2009 . Avas announce on to the Media that it nationalized Rodipet andfabricated accusations . After 3 weeks fierce fighting , Rodipet SAsmanagement are summoned to attend a meeting with the Authority for State

Assets Recovery (AVAS). During this meeting, and despite obvious success inthe development of the firm with hundreds of millions of investments with the fullknowledge of AVAS , such as the development of hundreds of new kiosks,Rodipet SAs management has to face groundless accusations of

mismanagement after they monitor the investments for 4 years .

July 2009 . Rodipet SA is nationalized by AVAS on the grounds that Magnar hadfailed to fulfill a minor obligation ( stamped document ) arising from theprivatization contract of 2003. This decision has a very negative impact of its3,300 employees, as AVAS then stopped paying them salaries. Nocompensation is offered to Magnar.

August 2009 . Hassan Awdi, under constant pressure of the authorities and theMedia , and following warnings of friends and partners, fears that his security andfreedom of movement may not guaranteed anymore in Romania. He therefore

leaves the country, with hope, at the time, to be soon able to come back there tofind a compromise with Romanian authorities

YEAR 201031 May 2010 .An arbitration case is filed by Hassan Awdi, and two of hiscompanies, Business Consultants Inc. and Alfa El Corporation, with theInternational Center for Settlement of Investment Disputes (ICSID) hosted by theWorld Bank. The Respondent, whom the case is filed against, is the Romanianstate. Its legal counsels are Lalive, Geneva (Switzerland) and Leaua Associatii,Bucharest (Romania)The three Claimants consider to have been illegally expropriated from Romania-based

company Rodipet, without receiving any fair compensation in return. According tothem, such situation contradicts the US-Romania bilateral Investment Treaty.

16 June 2010 . The case filed on 31 May with ICSID is registered under the no ARB/2010/13, Details and updates are available under:http://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&reqFrom=ListCases&caseId=C1100&actionVal=viewCase
http://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&reqFrom=ListCases&caseId=C1100&actionVal=viewCasehttp://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&reqFrom=ListCases&caseId=C1100&actionVal=viewCasehttp://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&reqFrom=ListCases&caseId=C1100&actionVal=viewCasehttp://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&reqFrom=ListCases&caseId=C1100&actionVal=viewCasehttp://icsid.worldbank.org/ICSID/FrontServlet?requestType=CasesRH&reqFrom=ListCases&caseId=C1100&actionVal=viewCase


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22-23 June 2010 . Series of 34- 36 raids against the premises of Rodipet inBucharest, as well as against some houses from Rodipets employees and management.These raids are conducted by Organized Crime and Terrorism Investigation Directorate(DIICOT). Starting 6.00 a.m. on 22 June 2010, only a few hours following the

authorization to raid the premises had been granted and a few days after the Requestfor Arbitration had been registered with ICSID, the Romanian Government unleashed averitable army of hundreds of armed and masked police officers, some in civilianclothing belonging to DIICOT targeting Claimants, their business partners, Mr. HassanAwdis brothers, their employees and their investment s in Romania. Documentsreferring to the Rodipet arbitration case are seized during these raids. Seventeenpersons with Arab and Romanian names only were selected from a list that include alsoFrench , British, etc in a news paper article Septamana Financiara in may 2006 . Theywere summarily selected and accused based on witness statements of 4 ex-employees

of Rodipet that were fired for ethical behavior . The police and the prosecutorsfabricated files on them and put travel restrictions on them . But in few months all theRomanians became free to travel . The prosecutors and Judges took discriminatorydecisions and kept the restrictions on the 5 Lebanese only including the 2 brothers ofHassan awdi , Hussein awdi and Mehdi awdi were kept as hostages for 30 monthsbeyond the max of 2 years under EU laws . This is serious discrimination betweenRomanian and non Romanian under the Romanian law. They were told on manyoccasions by policemen, prosecutors and even the judges that they will be free whenthey catch hassan awdi and when the case is dropped in ICSID world bank . They are

being monitored daily . Their religious, civil, human , property rights were brokendaily since the Raids . The authorities keep threatening them with different measures.

21 Decemb er 2010 . As both EU member states and Schengen Area memberstates, France and Germany rejects Romanias application to enter theSchengen area, which brings together some EU member states whose inhabitantmay cross border without control checking. According to French and Germanauthorities, Romania must improve fight against corruption.

23 December 2010 . The Claimants (Hassan Awdi, Business Consultants and Alfa El Corporation) file a request for provisional measures. After briefing on the

matter and a full 1 day hearing, the Tribunal granted unrestricted access toClaimants to the documents seized by DIICOT on 22 June 2010. The tribunalwas informed with evidence about Romania tampering and destruction ofdocuments.

YEAR 2011


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19 January 2011 . Constitution of the arbitral tribunal in the "Hassan Awdi/Alfa ElCorporation/Business Consultants" case no ARB/10/13 according to ICSIDprocedural regulations. It is composed of three well known experts:Mr. Piero Bernardini (Italian), presidentMr. Rudolf Dolzer (German), arbitrator, appointed by the Respondent Romanian

StateMr. Hamid G. Gharavi (Iranian/French), appointed by the Claimants (Hassan Awdi,Business Consultants and Alfa El Corporation)

28 January 2011 . The Respondent (Romanian state) files observations on theClaimants (Hassan Awdi, and companies Business Consultants and Alfa ElCorporation) request for provisional measures.

7 February 2011 . A report appears on US leading information network onlineCNN, referring to accusations of human trafficking against Hassan Awdi, basedon the Honduran workers case, causing huge damage to Hassan Awdis

reputation.Sources referred to in th is article are Romanian authorities. Hassan Awdisdefense team strongly protests against this report and obtains an amendmentfrom CNN a few days later. A corrective notes now states on the availablewebpage that: An earlier version of this article incorrectly said that a Lebanese businessman,Hassan Awdi, was charged with multiple offenses, including human trafficking, inconnection with the importation of workers into Romania. He has not beencharged with such crimes. CNN regrets the error.

Available at:10 March 2011 . The Tribunal holds a first hearing on provisional measures in

Paris.http://edition.cnn.com/2011/OPINION/02/07/batstone.romania.sex.trade/index.html?iref=allsearch .

29 March 2011 . The Tribunal issued Procedural order n 1 , where it orderedRomania to return all printed and electronic documents .

April 2011 Dec 2011 . Several attempts from Claimants lawyers to accessdocuments seized during the June 2010s raids against Rodipet and itsemployees according to Procedural order 1 but it was met with great difficultiesand tricky games . The arbitral had to issue almost 14 new instructions and

clarifications to Romania in order to execute the order . YEAR 201210 Jan 2012 . The Tribunal holds new hearing to see why Romania did notexecute order 1.

23 Jan 2012 . The tribunal issued new Procedural order n 2 , where it foundRomania had breached order 1 . It ordered Romania again to give all the
http://edition.cnn.com/2011/OPINION/02/07/batstone.romania.sex.trade/index.html?iref=allsearchhttp://edition.cnn.com/2011/OPINION/02/07/batstone.romania.sex.trade/index.html?iref=allsearchhttp://edition.cnn.com/2011/OPINION/02/07/batstone.romania.sex.trade/index.html?iref=allsearchhttp://edition.cnn.com/2011/OPINION/02/07/batstone.romania.sex.trade/index.html?iref=allsearchhttp://edition.cnn.com/2011/OPINION/02/07/batstone.romania.sex.trade/index.html?iref=allsearch


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documents and it penalized Romania that it must pay 50 % of claimants (hassan awdi ) costs for the non implementation of order n 1 . The courtalso told Romania that it reserves the rights to take further actions ifRomania will not comply .

23.08.2012 Three policemen IOVU DUMITRU, PADURARU ADRIAN,BADULESCU BENIAMIN from DIICOTT confiscated the keys of a glass buildingand gave it to one person called ufeleanu without a legal mandate and dueprocess . This building contains all awdi group documents needed for ICSIDworld bank and Romanian courts. It is owned by everyday business impex srland not Rodipet . Those policemen and another 5 had fabricated penal files onhassan awdi because their companies ADELMAR PRESS SRL and SCROTMAR PROD SRL were put in bankruptcy by Rodipet . They must pay bigdebt to Rodipet which in turn must pay it to the editors. For two years, they hadabused the laws, tempered and destroyed the documents , lied to the Romanianpublic and the media . This last action is intended to destroy all the evidences on

them and to fabricate more files.

01.09- 2012 I made a penal claim on those policemen because after I lodged in May2010 at I.C.S.I.D World Bank a complaint against Romania (File ARB/10/13), concerningthe privatization and the nationalization of Rodipet. Within few days Romania revengedon me and created penal files. I was extremely surprised and astonished that the samepolicemen ( their chief dan hosu is the husband of prosecutor Hosu ) connected to thebusinesses of rotmar and adelmar companies with Rodipet were in charge of ALL THEINVESTIGATIONS as they were the only ones available out of hundreds ofinvestigators, policemen and prosecutors in Romania . THEY were MY BUSINESSCLIENTS , BECAME MY ENEMIES , MY INVESTIGATORS , MY PROSECUTORS ANDJUDGING ME IN THE SAME TIME ???? HOW COULD THAT BE POSSIBLE? Is this acoincidence or organized Crime ?????

JUSTICE IN ROMANIA

Just after almost 4 years , we got to know the basis of DIICOTT prosecutor Giorgianahosu accusations that were made in her penal files on me hassan awdi and co . She sentme in June 2010 almost 300 policemen and destroyed AWDI group. All her accusationswere based on two financial reports prepared by Consulta SPRL, Cornel Florea, and andex-employee of rodipet Vasile Uiflean. Mr cornel Florea a mechanical engineer thenbecame a financial expert after some seminars. Vasile Uifelean was fired from rodipetfor theft and serious alcoholic problems. He was jobless for almost 5 years thensuddenly became a general manager of Rodipet and a financial expert for DIICOTT andthe judicial court. Diicott experts for almost 4 years did not audit consulta , florea anduifelan reports . What is wrong with those reports? . The reality, a junior high school


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person can write better ones. They are full of mistakes, no logic in them, contradictory,full of lies, and the writers had serious issue and DO NOT KNOW the difference betweenold lei and new lei with a difference of 10000 to 1 . T he famous 35.5 million euros thatall media had been talking about since june 2010 was fabricated and if 4 zeros were

taken out the number is 3500 Euros . When I analyzed them with my experts, we addedthe supposed value of all abuses that diicott prosecutor Hosu had accused me of doingto be almost 650 million Euros. We guess and we concluded that no one from DIIcotthad ever read in details and audited those reports. Diicott prosecutor took theconclusions of this mechanical engineer and the 5 year jobless alcoholic uifelean andmade decisions ( ordinances or decrees like those made by Nicolae Ceauescu) thatconfiscated : documents, assets, real estate properties, put jobless almost 3700Romanians, destroyed awdi group companies ( all been looted ) , and took the freedomsof 5 persons as hostages for 30 months. For all this good Job , Ms prosecutor Hosu andalmost all her team were promoted . I also would like to mention that the ex-chief ofpolice Dan hosu , the husband of prosecutor Hosu was involved with other policemenwith secret business deals with Rodipet ( me ) and did not pay their debt of couple ofhundreds of thousands of Euros . Also the son vlad dan hosu was working for Rodipet(me ) and was fired for ethical behavior. The Romanian justice so far after many officialclaims full of evidences, keep saying that this is not revenge and there is no conflict ofinterests. THIS IS THE JUSTICE IN ROMANIA. A EUROPEAN UNION COUNTRY.

One will wonder why ?? Rodipet had almost 1700 kiosks . While under our managementthe average rent value per kiosk is almost 150 euros per month. Access press kiosks in

Bucharest range between 300 to 450 euros per kiosk per month. However, consulta ,florea and uifelean with Diicott protection had been for 5 years in charge managing thekiosks , awdi group assets . One simple question and an example. If one multiply: 150euros rent per month per kiosk x 12 months x 1700 kiosks x ( 4 or 5) years = approx 8million euros. But consulta , Florea and uifelean registered in the books of rodipet onlyalmost half a million euros . why ??? Anaf and all authorities were notified many timesto audit the reports that Diicott used to prosecute me and to audit the books of rodipet. But no one want to act . why? All want to accuse hassan awdi to cover up for othercrimes. THIS IS THE JUSTICE IN ROMANIA. A EUROPEAN UNION COUNTRY.

All is documented.

THE POLICEMEN AND PROSECUTORS AND OTHERS ARE ACCUSED :

- Human rights abuses


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- Kidnapping and taking as hostages by fabricating files with the intentions :revenge , looting of awdi group assets , and appearing as heroes in order to bepromoted

- Civil rights abuses

- Discrimination- Property thefts

Need legal actions on those policemen, prosecutors and others in Romania, US ,Lebanese and EU courts

Feb 4-5 2014 last day of ICSID hearing. A decision is expected around the end of 2014 .In the future will be ICSID 2 , in the name Baalbeck tourism sarl and Hotshares sarlagainst Romania and might start based on the Lebanese Romanian bilateral investmenttreaty . The objectives: the looting of the companies and assets by the Romanian

justice, Romania did not provide security and protection. Under, the treaty this isconsidered as expropriation.

CFR messagerie SA.

CFR Calatorie SA directors looted almost 9 million euros and sent to two companies Reva sa andRemar SA by using CFR messageries as a middle company . The theft was based on false repairof 167 wagons . To cover this up , they insisted and lobbied me hassan awdi to buy CFRmessagerie and designed that the company will go into insolvency by eliminating 90 % of itsincome few days after privatization. Judge Roventa Elena now arrested , selected Euroinsol /Remus Borza to be the administrators. Both judge Roventa and Borza had looted awdi groupcompanies assets including the 167 wagons . The theft was commercially valued at 60 millionEuros which Romania one day must compensate me as an american Lebanese investor. Tocover up all the crimes, the best way was to prosecute the victims hassan awdi and his brotherMehdi awdi . DIICOTT prosecutor girogiana Hosu , her husband dan Hosu ( my personal enemy ), his son vlad dan hosu , expert Timofte adriana , prosecutor Cristian Ban , prosecutor TudorMarian , policeman Iovo dumitru and President Judge Nestor Raul Alexandru fabricated a penalfile , created a false debt that we stole almost 300000 euros from our own company CFRmessagerie SA and sentenced us for 10 years in prison . Now the file is in the Bucharest appealscourt and god know what justice we will receive . For the same charges we were cleared of anywrong doing in 2009 by the prosecutors of the Bucharest court sector 1. Double jeopardy justice .