Romania's anticorruption prosecutors have started a criminal investigation against Bucharest District 3 mayor Robert Negoita, charging him with tax evasion.

The number of Bucharest mayors targeted by National Anticorruption Department - DNA investigations has thus increased to six. Bucharest mayor Sorin Oprescu, District 1 mayor Andrei Chiliman, District 2 mayor Neculai Ontanu, District 4 mayor Cristian Popescu Piedone, and District 5 mayor Marian Vanghelie are the other five mayors investigated for corruption. Read more about them here.

The DNA's investigation targets Robert Negoita's activity in the 2005-2009 period when he managed several real estate companies. According to DNA, Negoita used his companies to develop three residential compounds in Bucharest, Popesti Leordeni, and Voluntari, and then sold the villas and apartments in these compounds as an individual, without paying any taxes. Thus, the companies that Negoita managed registered the expenses while he cashed in the revenues himself and paid no taxes.

Negoita carried out 1,250 real estate transactions between October 1, 2006, and July 13, 2009, according to DNA. These activities brought him revenues of over RON 364.7 million (some EUR 81 million). He allegedly dodged VAT payments worth RON 77.1 million (some EUR 17 million), according to DNA. The law states that individuals who make a business from developing and selling real estate should also pay VAT, even if the activity is not registered on a company.

Robert Negoita was associated in all his business ventures with his brother, Ionut Negoita, who is now best-known as the owner of the Dinamo Bucharest football club. Besides the real estate projects, the two brother have built the largest hotel in Romania, RIN Grand Hotel (where RIN stands for Robert and Ioan Negoita), and a water park in Otopeni.

They used to be among the biggest sponsors of the Social Democrat Party (PSD). Robert Negoita was elected mayor of Bucharest’s District 3 in June 2012, running for PSD. Before that, he was a member of the Chamber of Deputies, also for PSD.

When he was elected deputy, in 2008, he declared all the real estate transactions he had made and all the apartments he owned as an individual. His wealth statement had over 70 pages. In 2009, the tax agency ANAF started an investigation on Negoita and seized some of his assets. The prosecutors' investigation started seven years later. Negoita is preparing to run for a second mandate as mayor of District 2.

Tax Agency sells Bucharest District 3 mayor’s properties

Bucharest Third District mayor’s seized apartments, auctioned off by Romanian tax administration

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