By Radu-Sorin Marinas
BUCHAREST, March 16 (Reuters) - Romanian prosecutors detained the head of a European Union-backed anti-corruption watchdog on Monday, suspecting him of inflating the value of real estate by 75 million euros ($79 million) in a land restitution scam.
The detention is the latest in a parade of arrests and convictions of high-ranking officials in Romania, one of the EU's most corrupt countries. Finance Minister Darius Valcov resigned on Sunday, accused of taking money in exchange for favours to a business while a provincial mayor.
Prosecutors on Monday detained the head of the National Integrity Agency (ANI), a watchdog set up after Romania joined the EU in 2007 to investigate suspiciously wealthy politicians, which won praise from Brussels but was often resented by MPs.
Unlike the main anti-corruption agency, the DNA, the ANI does not have the power to prosecute.
Prosecutors said ANI head Horia Georgescu would be detained for 24 hours, on the "reasonable suspicion" that he had abused his powers in a previous role at a government agency that restores property seized under Communism to its rightful owners.
Georgescu denied the allegations, according to a statement by his lawyer to Realitatea TV. Valcov also denied wrongdoing.
OVERVALUATION
"Specifically, in (2008-2009), the Central Commission to set property compensation ... part of the National Authority for the Restitution of Property, of which Georgescu was a member, approved evaluation reports for three dossiers ... with over-valued real estate compensation," the DNA said in a statement.
Thousands of Romanians are waiting for compensation for property seized under Communism, which fell in a bloody revolution in 1989 after four decades of dictatorship. Disputes over land ownership, the inefficiency of the judicial system and red tape have hampered efforts to return property.
Widespread corruption has long deterred business in Romania, which is joint last among EU states in Transparency International's corruption perception index. The EU has Romania's justice system under special monitoring, together with that of neighbouring Bulgaria.
Markets shrugged off Valcov's resignation on Monday and analysts said the minister's exit would not derail Romania's fiscal policy aims.
Prime Minister Victor Ponta's government, which faces a general election at the end of next year, has announced proposals for sweeping tax cuts between 2016 and 2019.
Ponta told reporters on Monday that Valcov, one of the architects of the tax proposals, would not be replaced immediately, but that a successor would be appointed after the tax proposals were sent to parliament around March 25. ($1 = 0.9458 euros) (Editing by Matthias Williams and Kevin Liffey)
The countdown is on until the start of the largest local fest, Transilvania International Film Festival on 13 June. Or, as everyone calls it: TIFF. To pass the time and (or) have an alternative, do not miss some of the most entertaining stories of all time courtesy of suspense master Alfred Hitchcock. And check out […]
Roughly 45.7% of Romanians believe the country’s May presidential elections were rather unfairly organized, while 50.4% believe they were fair, according to a survey by INSCOP Research. Romania's previous presidential elections, which saw centrist Bucharest mayor Nicusor Dan emerge victorious, saw extreme polarization. Immediately after...
CARFIL Brasov, central Romania, is set to begin production of three types of Romanian military UAVs this year, news agency Agerpres reported. The drones, named Cuda, Sirin, and a marine drone, were unveiled at the Southeast Europe Special Operations Forces Forum 2025 (SEESOF) in Targu Mures, the first international expo-forum dedicated to the special operations forces. ...
The National Meteorological Administration of Romania, or ANM, aims to become a European regional hub for professional training in the field of climate change, according to director general Elena Mateescu. The official noted during “The Future of Agriculture” forum held on Thursday, June 5, that the ANM has already completed the European Agrometeorology Center, which […]
Romania’s Interior Ministry (MAI) and Defense Ministry (MApN) have warned of ongoing disinformation campaigns on social media aimed at manipulating public opinion. The latest wave of false claims includes reports about the imposition of martial law and border closures, seeking to heighten public anxiety over the risk of war. Romanians, whether abroad or within the […]
The International Monetary Fund (IMF) issued new recommendations to Romania, among which is an increase in VAT, but also excise duties, dividend taxes, and the introduction of two income tax rates of 15% and 25%. At the same time, it recommends the reduction or elimination of the health insurance contribution, as well as a change in […]
