Another Romanian party leader investigated for influence peddling

28 September 2016

Romania's National Anticorruption Department (DNA) has started the criminal prosecution of Vasile Blaga, the co-president of the National Liberal Party (PNL), for influence peddling.

Blaga was questioned by DNA Ploiesti prosecutors as a suspect on Wednesday morning, September 28. The politician was placed under judicial control for 60 days in this case. He will also resign from PNL’s helm, according to a statement from the party.

Gheorghe Stefan, the former mayor of Piatra Neamt, and businessman Horatiu Bruna Berdila are also investigated for influence peddling.

In 2009, there was an “obvious agreement” between people with leadership positions in the ruling party at that time, namely general secretary Vasile Blaga and party vice-president Gheorghe Stefan, to obtain money for the party, according to DNA.

“According to the agreement, with the help of ministers appointed politically, this would have been done by naming certain people to lead national companies and public institutions subordinated to these ministries, who would award public contracts to private companies willing to “pay contributions” to the political party to which the two belonged,” reads the DNA statement.

Thus, Gheorghe Stefan allegedly used the influence he had as party vice-president to convince people with decision-making power in the ministries to appoint a certain person in the management of a national energy company.

“This individual had been approved by suspects Gheorghe Stefan and Vasile Blaga, and was willing to contribute, indirectly, to the financing of the party by awarding public procurement contracts to various companies.”

In 2001-2012, Stefan informed Blaga about the ways through which, with the help of the director of a national energy company, they were planning to obtain money for the party. Through rigged auctions, the company of businessman Horatiu Bruna Berdila concluded contracts with the energy company, and some of the money he got from those contracts he transferred to the party. The money represented a predetermined percentage of the contracts' value.

Gheorghe Stefan apparently promised the national energy company’s director that he would remain in this position as long as he awarded a series of contracts to the company represented by Horatiu Bruna Berdila. In parallel, Stefan promised Berdila that he would intervene to the energy company director so that he would win the public auctions organized by this firm. In return, he asked and received 10-25% of the awarded contracts’ value, the total sum amounting to some RON 25 million (EUR 5.6 million).

Vasile Blaga allegedly received the total amount of EUR 200,000 between 2011 and 2012, through an intermediary. He had also received EUR 500,000 from Gheorghe Stefan, according to prosecutors.

Gheorghe Stefan has also been involved in several other corruption cases, the best-known of which is the Microsoft file. Stefan was sentenced to three years in jail in this case, but the decision is not final.

Vasile Blaga is one of the most influential local politicians. He was one of the founders of the Democratic Party (PD), in 1991, alongside former Prime Minister Petre Roman. His rise to power came in 2004, after he coordinated Traian Basescu's presidential campaign. In December 2014, Blaga was appointed minister of administration and internal affairs in Calin Popescu Tariceanu's cabinet, a position he held until April 2007, when PD broke its alliance with Tariceanu's National Liberal Party (PNL). He returned to the Government in December 2008, as a minister in Emil Boc's cabinet, from which he stepped down in September 2010, after a policemen's protest.

Blaga was a senator since 1996, and Senate president between 2011 and 2012. He wanted to run again this year. He was President of the Liberal Democratic Party (PDL) from June 2012 until November 2014, when PDL merge with PNL to form the new PNL. Blaga has been one of PNL's co-presidents alongside Alina Gorghiu since then.

Blaga is the second PNL leader who resigns after a corruption investigation. Ludovic Orban, one of the party's vice-presidents, stepped down after he was charged with influence peddling during his campaign for Bucharest mayor earlier this year.

Former Prime Minister Calin Popescu Tariceanu, the leader of the Liberal Democratic Alliance (ALDE), has also been investigated by the DNA and sent to court for lying under oath.

Liviu Dragnea, the President of the Social Democratic Party (PSD) was even sentenced to two years probation after being charged by DNA for electoral fraud.

 

Irina Popescu, irina.popescu@romania-insider.com

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Another Romanian party leader investigated for influence peddling

28 September 2016

Romania's National Anticorruption Department (DNA) has started the criminal prosecution of Vasile Blaga, the co-president of the National Liberal Party (PNL), for influence peddling.

Blaga was questioned by DNA Ploiesti prosecutors as a suspect on Wednesday morning, September 28. The politician was placed under judicial control for 60 days in this case. He will also resign from PNL’s helm, according to a statement from the party.

Gheorghe Stefan, the former mayor of Piatra Neamt, and businessman Horatiu Bruna Berdila are also investigated for influence peddling.

In 2009, there was an “obvious agreement” between people with leadership positions in the ruling party at that time, namely general secretary Vasile Blaga and party vice-president Gheorghe Stefan, to obtain money for the party, according to DNA.

“According to the agreement, with the help of ministers appointed politically, this would have been done by naming certain people to lead national companies and public institutions subordinated to these ministries, who would award public contracts to private companies willing to “pay contributions” to the political party to which the two belonged,” reads the DNA statement.

Thus, Gheorghe Stefan allegedly used the influence he had as party vice-president to convince people with decision-making power in the ministries to appoint a certain person in the management of a national energy company.

“This individual had been approved by suspects Gheorghe Stefan and Vasile Blaga, and was willing to contribute, indirectly, to the financing of the party by awarding public procurement contracts to various companies.”

In 2001-2012, Stefan informed Blaga about the ways through which, with the help of the director of a national energy company, they were planning to obtain money for the party. Through rigged auctions, the company of businessman Horatiu Bruna Berdila concluded contracts with the energy company, and some of the money he got from those contracts he transferred to the party. The money represented a predetermined percentage of the contracts' value.

Gheorghe Stefan apparently promised the national energy company’s director that he would remain in this position as long as he awarded a series of contracts to the company represented by Horatiu Bruna Berdila. In parallel, Stefan promised Berdila that he would intervene to the energy company director so that he would win the public auctions organized by this firm. In return, he asked and received 10-25% of the awarded contracts’ value, the total sum amounting to some RON 25 million (EUR 5.6 million).

Vasile Blaga allegedly received the total amount of EUR 200,000 between 2011 and 2012, through an intermediary. He had also received EUR 500,000 from Gheorghe Stefan, according to prosecutors.

Gheorghe Stefan has also been involved in several other corruption cases, the best-known of which is the Microsoft file. Stefan was sentenced to three years in jail in this case, but the decision is not final.

Vasile Blaga is one of the most influential local politicians. He was one of the founders of the Democratic Party (PD), in 1991, alongside former Prime Minister Petre Roman. His rise to power came in 2004, after he coordinated Traian Basescu's presidential campaign. In December 2014, Blaga was appointed minister of administration and internal affairs in Calin Popescu Tariceanu's cabinet, a position he held until April 2007, when PD broke its alliance with Tariceanu's National Liberal Party (PNL). He returned to the Government in December 2008, as a minister in Emil Boc's cabinet, from which he stepped down in September 2010, after a policemen's protest.

Blaga was a senator since 1996, and Senate president between 2011 and 2012. He wanted to run again this year. He was President of the Liberal Democratic Party (PDL) from June 2012 until November 2014, when PDL merge with PNL to form the new PNL. Blaga has been one of PNL's co-presidents alongside Alina Gorghiu since then.

Blaga is the second PNL leader who resigns after a corruption investigation. Ludovic Orban, one of the party's vice-presidents, stepped down after he was charged with influence peddling during his campaign for Bucharest mayor earlier this year.

Former Prime Minister Calin Popescu Tariceanu, the leader of the Liberal Democratic Alliance (ALDE), has also been investigated by the DNA and sent to court for lying under oath.

Liviu Dragnea, the President of the Social Democratic Party (PSD) was even sentenced to two years probation after being charged by DNA for electoral fraud.

 

Irina Popescu, irina.popescu@romania-insider.com

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