Ex-finance minister Sebastian Vladescu, in wider corruption investigation with illegal payments worth EUR 20 mln

The National Anticorruption Directorate (DNA) has asked Romanian president Klaus Iohannis to approve the start of prosecution against the former minister of finance, Sebastian Vladescu, who is accused of taking bribes.

In the same corruption case, investigators have started the prosecution against Ionut Costea, former employee at the Ministry of Finance, Constantin Dascalu, state secretary at the Ministry of Transport, former MP Cristian Boureanu and Mihaela Mititelu, a person close to the leadership of state-owned rail operator CN CFR.

The DNA said the investigation relates to the contracts for the rehabilitation of the Bucharest-Constanta rail line and the recovery of residual VAT for the rehabilitation works on Bucharest-Cimpina line.

“Thus, between 2005 and 2014, Romanian officials and persons with influence received from a foreign company, based on agreements, around EUR 20 million, and in exchange they would secure the signing of contracts and the payment of bills for the rehabilitation of certain segments of Bucharest-Constanta rail line, as well as the payment of residual VAT for the rehabilitation of another railway line that was made by the same company.

The money that was illegally received represented shares from each payment made by the Romanian state and were paid successively as the construction firm was paid by the Romanian state, respectively by CN CFR,” said the DNA in a statement.

Initially, the “commission” on the illegal payments asked by the defendants stood at 3.5 percent, but was hiked to 10 percent as the public budget was under pressure due to the financial crisis.

On Tuesday, investigators raided the home of Vladescu, according to media reports. The move might be linked to today’s announcement of the DNA.

Prosecutors allege that the bribes were hidden through fake transactions and hidden in offshore accounts.

According to the prosecutors, Vladescu and Dascalu had accepted the promise of receiving EUR 2 million in bribes from the representative of the company that was working on the railway contract. The DNA said that Vladescu received EUR 65,000 as financing for an offshore company where he was an associate, from the total amount they had agreed.