COMPANY

Decree No. 648/1976

Italo Argentina Electricity Company

Replace the Contract-Concession signed with the Government of the Nation and decide Interventor Interino.

Bs. As., 18/2/1976

VISTO the expte. 20.153/75 of the registration of the Ministry of Justice and the provisions of Decree No. 731/75 and,

CONSIDERING:

It is the decision of the National Government to provide what is necessary for the argentinization of the Italo Argentina Electricity Company, as publicly announced on October 17, 1974.

That the Lord Procurator of the Treasury, who was entrusted with the study of the legality of the contract-concession with the Italo Argentina Electricity Company, has reached the following conclusions:

(a) That the aforementioned contract-concession, signed in 1961, infringes the concessions previously granted by the H. National Congress under Act No. 14.772.

(b) That the adoption by Decree No. 5571/61 provided by the Executive Power is not sufficient to give legal effectiveness and enforceability to the said contract, because it is subject to the H. National Congress according to the harmonic game of Laws Nos. 14.772 and 15,336;

(c) That the general economy of the contract, the transaction record that forms an integral part of the contract and certain contractual provisions are in violation of the regime of activities related to the electrical industry (Act No. 15.336) and of the system for the provision of the public electricity service in Buenos Aires (Act No. 14.772), all that leads to the absolute nullity of the respective instruments.

That the executive branch shares the fundamentals and the pointed conclusions of the opinion, which makes it necessary, given that it is invariable rule of the government to respect the powers proper to the constituted powers, to claim judicially the nullity of the acts mentioned, because it is the Judiciary to which the declaration of invalidity belongs.

That, without prejudice, must also be provided to ensure the continuity and proper provision of the service, as well as to authorize the continuation of the negotiations aimed at obtaining the transfer to the State of the goods, with the limitation that they will have to be carried out on bases that are exempt from the observed contractual provisions and are maintained in the economic, technical and legal reality and in the applicable legal order.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 - Declaring the manifest irregularity and, consequently, the ineffectiveness and inexigibility of the contract-concession signed between the government of the Nation and CIADE on 12 May and 30 June 1961, approved by Decree No. 5571/61 and additional agreement dated 10 February 1967, approved by Decree No. 4500/67.

Art. 2o - Attempt for the provisions of the preceding article, replace all the effects of the above-mentioned instruments as long as the normal provision of services is not affected.

Art. 3o - A temporary intervention by CIADE to D. Manuel V. Scotto Rosende (M. I. 0267.717) is intended to ensure the continuity and proper delivery of the service, without the measure to affect the legal status of the company or to replace its representative legal bodies, all of this without mentioning the legitimate right of the public administration of the police administration and its legal powers of technical, economic and financial control.

Art. 4o - Instruct the Treasury Procuration of the Nation to initiate in a timely manner the judicial actions aimed at obtaining the declaration of nullity of the contracts mentioned in Article 1.

Art. 5o - In accordance with paragraph (f) of the opinion of the Procurator of the Treasury of the Nation, the Ministry of Economics will have to submit, through the current negotiating commission (Resolution No. 275/75 of the Ministry of Economics) to the extent that they will be subject to the approval of the Executive Power and ad referendum of the Legislative Power, the negotiations that are taking place for the transfer of the goods

Art. 6o - Contact, post, give to the National Directorate of the Official Register and archvese.