Herbal Therapy Laboratories Faces License Revocation Over Salary Debts
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Herbal Therapy Laboratories (former Farmaco) may lose its license due to salary debts of more than 4 million lei

The pharmaceutical company Herbal Therapy Laboratories (former SA Farmaco) is under the threat of closure. The company was found to have debts to its employees exceeding 4.2 million lei, so the state authorities launched a procedure to suspend or completely revoke its license.
Svetlana Rudenco Reading time: 1 minute
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Herbal Therapy Laboratories (formerly Farmaco)

The proceedings started in February this year after an official request to the Parliament by MP Inga Sibova. According to the response signed by the state secretary of the Ministry of Labor and Social Protection, Mihai-Gabriel Ciobanu, the investigation of the State Labor Inspectorate revealed not only gross violations of the law, but also an obvious attempt by the company’s management to evade inspections.

The administration of Herbal Therapy Laboratories persistently ignored official summonses and refused to provide documents. As a result, the Labor Inspectorate drew up an offense report for obstructing the lawful activities of the inspection bodies and took the case directly to court.

A new inspection, which was completed in mid-May, revealed the extent of the former pharmaceutical giant’s financial problems. It turned out that the company not only ignored last year’s instructions of the authorities, but also accumulated debts to its employees. At the time of the inspection, the debts on current wages amounted to 2,890,787 lei. Besides, the company violated the terms of settlements when dismissing employees – the debt to the already dismissed employees increased by another 1,329,792 lei.

Because of the violations, the State Labor Inspectorate issued another violation report to the company. At the same time, on May 19, the agency sent an official appeal to the State Services Agency (ASP) about the license revocation, as well as transferred the case materials to the State Tax Service to take operative measures within its competence.


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