Former Romanian ministers, on the ropes for illegal financing of boxing gala

The National Anticorruption Directorate (DNA) has asked the Romanian Parliament to approve an investigation on former minister Elena Udrea and Ion Ariton, for abuse of office and influence peddling. Elena Udrea is a deputy in Romania’s Parliament while Ariton is a senator. The DNA prosecutors said that Udrea and Ariton illegally approved state financing for the boxing match between former Romanian boxing champion Lucian Bute and Jean Paul Mendy, in 2011, which was organised by a private company. Former Romanian boxer Rudel Obreja, who was at that time president of the Romanian Boxing Federation, owns the private firm that organised the boxing gala, Europlus Computers SRL. Last year, the prosecutors started an investigation on Obreja for alleged funds embezzlement related to the “gala Bute”. Elena Udrea’s Ministry of Regional Development and Tourism paid EUR 2.3 million to Obreja’s firm to organise the boxing gala, where Romania advertised its official tourism brand. The minister signed an advertising contract with Europlus Computers SRL, which was supposed to be financed with European funds. Investigators said the minister had no need for advertising and that the contract was signed to cover for the ministry’s direct financing of the boxing gala, which was illegal. As a result, the EU funds management authority didn’t approve any payment for this contract because it wasn’t eligible. The ministry thus took a EUR 2.3 million damage. Ion Ariton also used his position as Minister of Economy determining ten state-owned companies to sponsor the boxing gala with a total EUR 390,000. State companies are not allowed to sponsor private firms. The EUR 390,000 paid by companies such as Hidroelectrica, Transelectrica, Nuclearelectrica, Transgaz, Romgaz and others went directly to Rudel Obreja’s firm. Ion Ariton was minister of economy from September 2010 until February 2012. Elena Udrea was minister of regional development and tourism from December 2008 until February 2012. DNA prosecutors indicted Udrea last week for money laundering and false statements in her wealth statement. They questioned her in the Microsoft IT licenses case in which Udrea’s former husband, Dorin Cocos, was arrested and indicted for bribery. editor@romania-insider.com