Fondul Proprietatea denies rumors in Romanian media of corruption investigation

The Romanian investment fund  Fondul Proprietatea has issued a statement denying rumors in the press that prosecutors are investigating the fund for corruption. “We wish to confirm that neither Fondul Proprietatea nor any of its representatives have received any notification from any Romanian authority of this claimed investigation,” reads a statement from the Fondul Proprietatea.

Romanian television reportedly broadcast rumors that two Ministry of Economy officials were under investigation for corruption and that the Fondul Propietatea was implicated. The Fondul Proprietatea also “vehemently” refuted the suggestion that there were any grounds for suspicion of the the fund or its management.

Romanian media suggested Fondul Proprietatea – and its management company Franklin Templeton – had bribed officials from the Economy Ministry, including Remus Vulpescu, former head of the Privatizations Office withing the Ministry. The media allegations pointed to gifts in money, expensive holidays and various services offered to Economy Ministry employees by Fondul Proprietatea. An official investigation was also started, according to Romanian media.

Fondul Proprietatea was created in 2005 as a joint stock company with a special purpose to provide compensation to people whose real estate assets had been confiscated by the Romanian state during the communist regime and who could no longer receive restitution in kind. The Romanian investment fund posted a profit of around EUR 128 million in 2011, and is listed on the Bucharest Stock Exchange, symbol FP.

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