Romania's Waters Administration pays unjustified fees for bank loan

The “Romanian Waters” National Administration (ANAR) paid unjustified expenses of RON 8.5 million (EUR 1.9 million), which represented bank fees, interest in arrears, and factoring fees, according to the Romanian Court of Accounts. These costs were due to the extension of a 3-year loan contract with local lender BRD and its subsequent conversion into a factoring contract. reports local Profit.ro. The institution made a criminal complaint against its economic director Dumitru Dumitru for the conversion of the credit in a factoring contract. ANAR has suspended Dumitru from his office. The anticorruption prosecutors are currently investigating the case. In 2010, the “Romanian Waters” National Administration signed a loan contract with BRD for RON 28 million (EUR 6.3 million) for 12 months. The loan was extended afterwards by nine additional documents, without the board’s approval. ANAR has also failed to collect revenues of EUR 21.5 million from Romanian power producer Hidroelectrica between 2011 and 2014, according to the Court of Accounts. The Water Administration hasn’t applied fees and penalties against Hidroelectrica for not paying on time. Hidroelectrica owed this money for the water used in its power plants. The company went into insolvency in 2012. editor@romania-insider.com