Bucharest district throws another EUR 10 mln into controversial real estate development

The City Hall of Bucharest's District 3 approved on May 18 the increase of the capital of the limited liability company Algorithm Construcţii S3 by RON 50 mln (EUR 10 mln), money to be invested in the refurbishment of the industrial site Laminor Hall, Economica.net reported.

The company's capital is controlled by two municipal companies: Algorithm Residential S3 (RON 305 mln) and SD 3 Sanitation and Snow Removal S3 (RON 70 mln). Following the increase, the share capital of Algorithm Constructii will become RON 425 mln.

Councillors of the opposition party USR pointed out that the company, although controlled by the municipality, was never subject to regular screening from the Court of Accounts.

Councillor Eugen Matei (USR) stressed that six schools could be developed with the money invested in Laminor Hall. In his opinion, the concept of arranging the hall resembles that of a mall.

"This is a mall. It's not a town hall, it's not a botanical garden. It's not for educational purposes, it's a shopping mall. That mall is one hundred meters from the project of [mayor's] brother, Ionut Negoiţă, who has there in development one of the largest complexes in that area, of over 1,000 dwellings," he said – implying that the shopping mall would increase the value of the residential development.

(Photo source: Facebook/Primaria Sectorului 3)