HASSAN AWDI VS ROMANIA

Investor story in Romania for 23 years .

RODIPET WORLD BANK ICSID ARBITRATION CASE
Overall Chronology

YEAR 1992
Creation of the Awdi group, an American-Lebanese investment group based in
Romania. 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 to
real estate, hotels, phone/IT, shopping centers and press distribution.
the Romanian economy was being rebuilt after the fall of communism. Mr. Awdi
was attracted by Romanias newly liberalized economy that offered the potential
and stability of a nation that was aspiring to join the European Union.
played a key role in the development of Romanias post-communist economy
and completed several landmark commercial projects over nearly 17 years. Both
directly and through his wholly-owned companies Enterprise Business
Consultants and Alfa El or other companies, Mr. Awdi invested considerable
amounts of money in the Romanian economy, including in real estate, importexport, 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 of
the largest foreign investors in Romania and his investments have been valued
at hundreds of millions of dollars.
invested in Romania where they have been living and working for many years,
including Mr. Awdis brothers Mehdi, Hussein, Mohamed and Jamal. Their
investments, which are independent and unrelated to those subject of the
arbitration initiated by M. Awdi with the ICSID, have been mainly focused on real
estate, leisure and hospitality and commercial retail. The Awdi family therefore
became a key player in the Romanian economy, employing thousands of
Romanians and creating hundreds of new job opportunities in numerous projects
across the country.
YEAR 1994
Hassan Awdi, president and CEO of the Awdi group, is one of the founding
members, with other expatriate businessmen, of the International School of
Bucharest.
He is one of the 11 founding members of the US-Romanias chamber of commerce.
YEAR 1995
22 June 1995 Romania requests to become a member state of the European
Union.
YEAR 1997

Hassan Awdi partners with Orange Romania and enters the GSM business.
As the Romanian privatization process begins, the Awdi Group starts participating in the
privatization process, by acquiring some formerly state-owned companies.
YEAR 1999
10 December 1999 . Romanian opens accession negotiations with the European
Union.
YEAR 2003
Rodipet SA, a Romanian state-owned monopoly for press distribution, launches a public
bid in the context of the privatization process. The companys core business includes a
nationwide network of news kiosks, which are regarded as highly strategic assets as
highly visible locations to place advertisements and political campaign materials.
23 December 2003 . Rodipet SA is bought by Magnar, a Romanian company
owned by Enterprise Business Consultants (a U.S. company wholly owned by
Hassan 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 and
parliament 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 of
the Romanian press, all publications being treated the same way no
matter their commercial value
2-For AVAS
- Cancelling existing tax debt and other debts
- Ensuring the adoption of law granting Rodipet SA with the opportunity to
access land concessions for its kiosks for free for 49 years. This obligation
is written in the privatization contract. The prospect of such land monopoly
is instrumental in Magnars group decision to buy Rodipet SA. In fact, this
monopoly ensures optimized revenues from kiosks once they are all
renewed and modernized, and therefore and a very good return on
investment - estimated to hundreds of millions of dollars over the period
going from 2004-2014
- Ensuring that Romanian press club keeps all contracts to date with
Romanian institutions, or improve the provisions of these contracts over
the next 5 years
YEAR 2004

Creation of the Rodipet group, designed to be an integrated press network. The

Rodipet 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 Euros
with one single objective , making Rodipet group companies major leading in the
Romania economy with the hope to be listed on London and European stock
exchange .
15 JUNE 2004 . Successful end of EU accession negotiations for Romania.
28 October 2004 . Law 442/2004 is adopted to complete the privatization of
companies in the portfolio of the Authority for Privatization and Management of
State shares and consolidation of privatization.
Amongst other purposes, this law enables Romania to fulfill its obligations as a result of
the 2003 privatization contract selling Rodipet SA to Magnar, with regards to debts
cancellation and access to free land monopoly for kiosks (Point 19 of the law).
YEAR 2005
25 April 2005 .The European Council approves Romanias EU accession.
YEAR 2006
A 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 by
media belonging to this group.
11 May 2006 . An extensive and aggressive report is released into leading
Romanian outlet Septemana Financiara on the Awdi family, alleging, without
providing evidence, that Hassan Awdi and family were setting up dummy
companies, supporting terrorism, stealing Rodipet SA, or using US state of
Delaware as tax haven. The report describes the Awdi groups activities in
Romania as opaque and calls for action from Romanian authorities.
This unsubstantiated report may be considered as the opening of the reputational case
and reputational bashing against Hassan Awdi. It will give grounds to the opening of
investigations against the Awdi group and his owners in Romania a few years later. The
Romanian authorities then launched a criminal investigation for terrorism charges
against certain members of the Awdi family in Romania. This criminal investigation
remained however dormant for years. For almost four years, from June 2006 until the
end of 2009, the investigation produced no more than a handful of witness depositions.

Almost no inquiries were ordered or carried out, no documents were seized, and no
research was made. During that period, not a single person was subjected to any
measure of any kind, whether a restriction of movement or otherwise.
YEAR 2007
1 January 2007 . The accession treaty making Romania a member of the
European 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 a
strategic regional leader in the Southern European region, thanks to its position
near the Black Sea and close top key energy supplying countries.
As an EU member state, Romania shall meet all the criteria defining membership to the
European Union, as developed on the occasion of the Copenhagen European Council in
December 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 to
buy Rodipet. Rodipets owner Hassan Awdi refuses proposed price in order to
pursue the development of Rodipet and its activities, as a means to get a fair
return on his initial investment.
20 January 2008 . IntelBiz, member of the Rodipet group, issues a recruitment
announcement, targeting non-Romanian nationals due to a workforce shortage in
Romania following EU accession; indeed, the progressive opening of frontiers
has attracted Romanians beyond their borders and many of them seek to work in
other 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 a
European Union-based company.
15 Honduran nationals are invited by IntelBiz to join Romania to be trained and
employed by this company. The procedure is conducted in agreement with Romanian
immigration authorities, who are informed of the program at all times. These 15
Honduran 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 with
few months by the same judges cancels law 2004/442, granting Rodipet SA with
the opportunity to access land concessions for its kiosks for free for 49 years
(+25 years). Rodipet is therefore stripped of its main asset from a
business/financial perspective: the 49 years (+ 25 years) concession.

YEAR 2009
A third attempt from a leading Romanian business group to buy Rodipet is again
rejected. Indeed, the offer consisted in setting up a joint venture with Rodipet SAs
ownership in order to get 50% of the company for free.
6 February 2009 . In an article released in DailyBusiess.ro, the Awdi Group is
listed amongst the top 25 most influential business entities in Romania, together
with other major groups.
March 2009 . Avas announce on to the Media that it nationalized Rodipet and
fabricated accusations . After 3 weeks fierce fighting ,
Rodipet SAs
management are summoned to attend a meeting with the Authority for State
Assets Recovery (AVAS). During this meeting, and despite obvious success in
the development of the firm with hundreds of millions of investments with the full
knowledge 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 had
failed to fulfill a minor obligation ( stamped document ) arising from the
privatization contract of 2003. This decision has a very negative impact of its
3,300 employees, as AVAS then stopped paying them salaries. No
compensation is offered to Magnar.
August 2009 .Hassan Awdi, under constant pressure of the authorities and the
Media , and following warnings of friends and partners, fears that his security and
freedom 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 to
find a compromise with Romanian authorities
YEAR 2010
31 May 2010 .An arbitration case is filed by Hassan Awdi, and two of his
companies, Business Consultants Inc. and Alfa El Corporation, with the
International Center for Settlement of Investment Disputes (ICSID) hosted by the
World Bank. The Respondent, whom the case is filed against, is the Romanian
state. 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 to
them, 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

22-23 June 2010.

Series of 34- 36 raids against the premises of Rodipet in

Bucharest, 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 Request
for Arbitration had been registered with ICSID, the Romanian Government unleashed a
veritable army of hundreds of armed and masked police officers, some in civilian
clothing belonging to DIICOT targeting Claimants, their business partners, Mr. Hassan
Awdis brothers, their employees and their investments in Romania. Documents
referring to the Rodipet arbitration case are seized during these raids. Seventeen
persons with Arab and Romanian names only were selected from a list that include also
French , British, etc in a newspaper article Septamana Financiara in may 2006 . They
were summarily selected and accused based on witness statements of 4 ex-employees
of Rodipet that were fired for ethical behavior . The police and the prosecutors
fabricated files on them and put travel restrictions on them . But in few months all the
Romanians became free to travel . The prosecutors and Judges took discriminatory
decisions and kept the restrictions on the 5 Lebanese only including the 2 brothers of
Hassan awdi , Hussein awdi and Mehdi awdi were kept as hostages for 30 months
beyond the max of 2 years under EU laws . This is serious discrimination between
Romanian and non Romanian under the Romanian law. They were told on many
occasions by policemen, prosecutors and even the judges that they will be free when
they 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 broken
daily since the Raids . The authorities keep threatening them with different measures.
21 December 2010 .As both EU member states and Schengen Area member
states, France and Germany rejects Romanias application to enter the
Schengen area, which brings together some EU member states whose inhabitant
may cross border without control checking. According to French and German
authorities, 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 to
Claimants to the documents seized by DIICOT on 22 June 2010. The tribunal
was informed with evidence about Romania tampering and destruction of
documents.
YEAR 2011

19 January 2011 . Constitution of the arbitral tribunal in the "Hassan Awdi/Alfa El

Corporation/Business Consultants" case no ARB/10/13 according to ICSID
procedural regulations. It is composed of three well known experts:
Mr. Piero Bernardini (Italian), president
Mr. Rudolf Dolzer (German), arbitrator, appointed by the Respondent Romanian
State
Mr. 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 the
Claimants (Hassan Awdi, and companies Business Consultants and Alfa El
Corporation) request for provisional measures.
7 February 2011 . A report appears on US leading information network online
CNN, referring to accusations of human trafficking against Hassan Awdi, based
on the Honduran workers case, causing huge damage to Hassan Awdis
reputation.
Sources referred to in this article are Romanian authorities. Hassan Awdis
defense team strongly protests against this report and obtains an amendment
from CNN a few days later. A corrective notes now states on the available
webpage that:
An earlier version of this article incorrectly said that a Lebanese businessman,
Hassan Awdi, was charged with multiple offenses, including human trafficking, in
connection with the importation of workers into Romania. He has not been
charged 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.ht
ml?iref=allsearch.
29 March 2011. The Tribunal issued Procedural order n 1 , where it ordered
Romania to return all printed and electronic documents .
April 2011 Dec 2011 .Several attempts from Claimants lawyers to access
documents seized during the June 2010s raids against Rodipet and its
employees according to Procedural order 1 but it was met with great difficulties
and tricky games . The arbitral had to issue almost 14 new instructions and
clarifications to Romania in order to execute the order .
YEAR 2012
10 Jan 2012 . The Tribunal holds new hearing to see why Romania did not
execute order 1.
23 Jan 2012 . The tribunal issued new Procedural order n 2 , where it found
Romania had breached order 1 . It ordered Romania again to give all the

documents and it penalized Romania that it must pay 50 % of claimants (

hassan awdi ) costs for the non implementation of order n 1 . The court
also told Romania that it reserves the rights to take further actions if
Romania will not comply .
23.08.2012 Three policemen IOVU DUMITRU, PADURARU ADRIAN,
BADULESCU BENIAMIN from DIICOTT confiscated the keys of a glass building
and gave it to one person called ufeleanu without a legal mandate and due
process . This building contains all awdi group documents needed for ICSID
world bank and Romanian courts. It is owned by everyday business impex srl
and not Rodipet . Those policemen and another 5 had fabricated penal files on
hassan awdi because their companies ADELMAR PRESS SRL and SC
ROTMAR PROD SRL were put in bankruptcy by Rodipet . They must pay big
debt to Rodipet which in turn must pay it to the editors. For two years, they had
abused the laws, tempered and destroyed the documents , lied to the Romanian
public 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 May
2010 at I.C.S.I.D World Bank a complaint against Romania (File ARB/10/13), concerning
the privatization and the nationalization of Rodipet. Within few days Romania revenged
on me and created penal files. I was extremely surprised and astonished that the same
policemen ( their chief dan hosu is the husband of prosecutor Hosu ) connected to the
businesses of rotmar and adelmar companies with Rodipet were in charge of ALL THE
INVESTIGATIONS as they were the only ones available out of hundreds of
investigators, policemen and prosecutors in Romania . THEY were MY BUSINESS
CLIENTS , BECAME MY ENEMIES , MY INVESTIGATORS , MY PROSECUTORS AND
JUDGING ME IN THE SAME TIME ???? HOW COULD THAT BE POSSIBLE? Is this a
coincidence or organized Crime ?????
JUSTICE IN ROMANIA
Just after almost 4 years , we got to know the basis of DIICOTT prosecutor Giorgiana
hosu accusations that were made in her penal files on me hassan awdi and co . She sent
me in June 2010 almost 300 policemen and destroyed AWDI group. All her accusations
were based on two financial reports prepared by Consulta SPRL, Cornel Florea, and and
ex-employee of rodipet Vasile Uiflean. Mr cornel Florea a mechanical engineer then
became a financial expert after some seminars. Vasile Uifelean was fired from rodipet
for theft and serious alcoholic problems. He was jobless for almost 5 years then
suddenly became a general manager of Rodipet and a financial expert for DIICOTT and
the judicial court. Diicott experts for almost 4 years did not audit consulta , florea and
uifelan reports . What is wrong with those reports? . The reality, a junior high school

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 between
old lei and new lei with a difference of 10000 to 1 . The famous 35.5 million euros that
all 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 added
the supposed value of all abuses that diicott prosecutor Hosu had accused me of doing
to be almost 650 million Euros. We guess and we concluded that no one from DIIcott
had ever read in details and audited those reports. Diicott prosecutor took the
conclusions of this mechanical engineer and the 5 year jobless alcoholic uifelean and
made decisions ( ordinances or decrees like those made by Nicolae Ceauescu) that
confiscated : documents, assets, real estate properties, put jobless almost 3700
Romanians, destroyed awdi group companies ( all been looted ) , and took the freedoms
of 5 persons as hostages for 30 months. For all this good Job , Ms prosecutor Hosu and
almost all her team were promoted . I also would like to mention that the ex-chief of
police Dan hosu , the husband of prosecutor Hosu was involved with other policemen
with secret business deals with Rodipet ( me ) and did not pay their debt of couple of
hundreds 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 official
claims full of evidences, keep saying that this is not revenge and there is no conflict of
interests. THIS IS THE JUSTICE IN ROMANIA. A EUROPEAN UNION COUNTRY.
One will wonder why ?? Rodipet had almost 1700 kiosks . While under our management
the 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 the
kiosks , awdi group assets . One simple question and an example. If one multiply: 150
euros rent per month per kiosk x 12 months x 1700 kiosks x ( 4 or 5) years = approx 8
million euros. But consulta , Florea and uifelean registered in the books of rodipet only
almost half a million euros . why ??? Anaf and all authorities were notified many times
to 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 other
crimes. THIS IS THE JUSTICE IN ROMANIA. A EUROPEAN UNION COUNTRY.
All is documented.
THE POLICEMEN AND PROSECUTORS AND OTHERS ARE ACCUSED :
-

Human rights abuses

Kidnapping and taking as hostages by fabricating files with the intentions :

revenge , looting of awdi group assets , and appearing as heroes in order to be
promoted
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 sarl
against Romania and might start based on the Lebanese Romanian bilateral investment
treaty . The objectives: the looting of the companies and assets by the Romanian
justice, Romania did not provide security and protection. Under, the treaty this is
considered as expropriation.
CFR messagerie SA.
CFR Calatorie SA directors looted almost 9 million euros and sent to two companies Reva sa and
Remar SA by using CFR messageries as a middle company . The theft was based on false repair
of 167 wagons . To cover this up , they insisted and lobbied me hassan awdi to buy CFR
messagerie and designed that the company will go into insolvency by eliminating 90 % of its
income 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 group
companies assets including the 167 wagons . The theft was commercially valued at 60 million
Euros which Romania one day must compensate me as an american Lebanese investor. To
cover up all the crimes, the best way was to prosecute the victims hassan awdi and his brother
Mehdi awdi . DIICOTT prosecutor girogiana Hosu , her husband dan Hosu ( my personal enemy )
, his son vlad dan hosu , expert Timofte adriana , prosecutor Cristian Ban , prosecutor Tudor
Marian , policeman Iovo dumitru and President Judge Nestor Raul Alexandru fabricated a penal
file , created a false debt that we stole almost 300000 euros from our own company CFR
messagerie SA and sentenced us for 10 years in prison . Now the file is in the Bucharest appeals
court and god know what justice we will receive . For the same charges we were cleared of any
wrong doing in 2009 by the prosecutors of the Bucharest court sector 1. Double jeopardy justice .