Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. EPPO/Romania: Three individuals and five companies indicted for €1...

EPPO/Romania: Three individuals and five companies indicted for €1 million fraud involving IT project

August 6, 2024

  The European Public Prosecutor’s Office (EPPO) in Ia?i (Romania) has brought charges against three individuals and five companies for aggravated subsidy fraud and money laundering, following an investigation into an IT project, with an estimated damage of €1 million. Two of the suspects referred to the court of Ia?i remain in pre-trial detention.   At issue is a company that requested non-repayable EU funds of up to €2 million (RON 10 953 924), for an IT project for the development of innovative software solutions (Innovative Platform for Rapid and Secure Financial Transactions – PIST).   According to the investigation, between 2020 and 2022, the beneficiary of the project submitted false or inaccurate documents for services and goods that were never delivered or purchased, as well as employment contracts for persons who were not actually employed – thus unduly obtaining funds from the EU budget of €1 million. It is understood that these funds, paid out by Romania’s Ministry of Investment and European Projects, were subject to money laundering through domestic and international financial circuits, using shell companies registered in Bulgaria and Spain, and bank accounts in Belgium and Lithuania. According to the evidence, the shares of the Romanian-registered companies suspected of the criminal activities were transferred to Moldovan citizens and to citizens in Italy, in order to prevent potential investigations.    Under Romania’s Criminal Code, aggravated subsidy fraud is punishable with up to ten-and-a-half years of imprisonment, and up to ten years for money laundering. The five companies indicted, if convicted, could face fines of up to approximately €420 000 (RON 2 100 000), to which complementary penalties may be added.   Earlier in this investigation, in May 2024, three other suspects admitted their guilt and signed plea bargaining agreements, which were submitted to the Ia?i Tribunal.  In order to recover the damage to the EU budget and any judicial expenses, the EPPO has seized three apartments and two plots of land with a combined worth of approximately €500 000, and has frozen all bank accounts held by the suspects and their companies.   All persons concerned are presumed to be innocent until proven guilty in the competent Romanian courts of law.   The European Public Prosecutor’s Office (EPPO) is the independent public prosecution office of the European Union. It?is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU. (Source: https://www.eppo.europa.eu/)

Read in full - click here
A slice of Romanian arts, culture, and entertainment: Broadcaster Nikki Bedi on BBC’s upcoming Arts Hour on Tour program in Bucharest

The Arts Hour on Tour, the BBC World Service arts and culture program that visits cities all over the world, will be in Bucharest next week to record a show on topics relating to the cultural life in the city and Romania. Television and radio broadcaster Nikki Bedi, who curates, writes, and presents the program, […]

Romanian prime minister clashes with foreign minister over Elon Musk retort

Romanian prime minister Marcel Ciolacu recently stated during an interview that foreign minister Emil Hureaznu will be replaced if he continues to send messages to private individuals, such as those addressed to Elon Musk, without consulting him. The warning comes after Emil Hurezeanu stated on Saturday, February 22, that Elon Musk’s support for Călin Georgescu […]

Romanian gas producer Romgaz sees higher profit despite revenue decline

Romanian state-controlled gas producer Romgaz (BVB: SNG) reported a net profit of RON 3.22 bln (EUR 647 mln) in 2024, up 14.5% compared with the previous year. The company’s revenues went down by 11.9% to RON 7.93 bln (EUR 1.6 bln) because of lower...

Romanian government survives far-right opposition’s no-confidence motion

The Romanian Parliament rejected the no-confidence motion initiated by far-right parties AUR, SOS Romania, and POT against the government led by Social Democrat prime minister Marcel Ciolacu. The motion received 147 votes in favor and one against during the lawmakers' meeting on Friday, February 28 - a figure lower than the 155 signatures with which […]

Romanian power producer Nuclearelectrica posts 31% profit drop in 2024 on lower prices

Nuclearelectrica (BVB: SNN), the company that operates Romania’s only nuclear power plant – Cernavoda, reported a net profit of RON 1.7 bln (EUR 343 mln) in 2024, down 31% compared with the previous year. The company recorded 37.6% lower revenues from electricity sales due to lower average...

Debates over peacekeeping troops in Ukraine are premature, Romanian interim president says

In his first press conference since becoming interim president, held on Friday, February 28, Ilie Bolojan said that discussing peacekeeping troops in Ukraine is premature, since no peace agreement was reached. He also discussed increasing Romania’s defense spending, the relationship with the United States, and the reconstruction of Ukraine. The press conference was organised after Ilie […]