The European Public Prosecutor's Office (EPPO) in Bucharest announces having filed charges against four suspects believed to be part of a criminal ring with ties to Italian mafia groups, in a case of an EUR 4.3 million subsidy fraud involving EU and national funds.In a statement this Tuesday, EPPO said that allegations are that the defendants formed a criminal group with other suspects to provide false letters of guarantee to awardees of EU-funded projects, which claimed to insure the projects against potential damages. In exchange for issuing the letters, the suspects are understood to have collected large amounts of money. According to the prosecutors, the suspects are believed to have carried out this fraudulent scheme in the name of companies registered in Czechia and Latvia, which did not have the right to issue letters of guarantee, nor the financial resources to cover the insured damages.The use of these documents resulted in an illicit gain of approximately EUR 4.3 million, most of the amount coming from the European Regional Development Fund, the European Agricultural Fund for Rural Development and the Regional Operational Programme.The move of EPPO Bucharest is the result of several investigations into criminal schemes using the same modus operandi, following house searches conducted in Romania and France in May 2023. Earlier, in 2023, other suspects were charged and are currently awaiting trial. Also, EUR 450,000 worth of assets were seized.If found guilty, the defendants face between four and 15 years of imprisonment.Based on the principle of loyal cooperation, the EPPO has alerted the Romanian Ministry of Investment and European projects about the existence of possible vulnerabilities in the management of European funds, which result in a significantly low level of protection of EU's financial interests in Romania.According to the operation methods identified in several cases, the elements that generated a high risk of fraud in EU-funded contracts consisted in the use of letters of guarantee issued by fictitious entities, or that didn't have the right to issue such documents. The bogus documents helped the fraudsters win several public award procedures, and consequently EPPO opened several investigations therein.
Cushman & Wakefield Echinox announced the completion of the sale of the Zenith Conference & Spa hotel in Mamaia, one of the top hospitality units on the Romanian seaside, to the owners of Steaua de Mare Hotels & Resorts, based in Eforie Nord. The property was previously controlled by the RC2 investment fund and Antares […]
Romanian president Nicușor Dan is scheduled to be in the United Kingdom on Tuesday and Wednesday, December 16-17, to meet with representatives of the business environment and the Romanian community. On the first day, the head of state will hold meetings with Romanian representatives from the business environment in the UK, as well as with […]
More than 300,000 older people living in Romania’s urban areas are expected to spend Christmas alone, according to data cited by the NGO Niciodată Singur – Friends of the Elderly, which recently launched its annual holiday campaign aimed at tackling loneliness among seniors. The initiative, titled “Be the Carol That Breaks the Silence,” is based […]
The Romanian Senate adopted a simple motion initiated against environment minister Diana Buzoianu on Monday, December 15. The motion passed after the Social Democratic Party (PSD), the largest party in the governing coalition, joined the far-right opposition party AUR in the initiative. The vote for the simple motion was carried after a no-confidence motion filed […]
Romanian farmers are set to benefit from improved access to financing following a EUR 25 million loan granted by the European Investment Bank (EIB) to Agricover Credit IFN SA, aimed at supporting micro agricultural businesses across the country. The funding will be provided under the InvestEU mandate and is intended to boost productivity and promote […]
Romanians rank among the most satisfied homeowners in Europe, but rising housing-related costs continue to put significant pressure on household budgets, according to the RE/MAX European Housing Trend Report 2025. The study showed that 81% of Romanians are happy with their living situation, above the European average of 77%, while 83% live in owner-occupied properties, […]
