Tiberiu Urdareanu, president of the UTI group of companies and one of the most powerful businessmen in Romania, admitted on October 30 the charges of bribery, during the hearings at the headquarters of the National Anticorruption Directorate DNA.

He was detained by the prosecutors last week, together with Gheorghe Nichita, the suspended mayor of Iasi and local investor Iulius Gabriel Mardarasevici, the owner of the IT company IBC.

Mardarasevici also admitted the charges. DNA has demanded house arrest for the two businessmen. However it has asked for preventive arrest for the suspended mayor, reports local Profit.ro.

In August 2013, Gheorghe Nichita demanded and received money for helping the joint venture of UTI and IBC win a public contract worth RON 69.6 million (EUR 15.7 mln), without VAT, according to prosecutors. The contract, which was financed with European funds, provided the implementation of a traffic management system in Iasi, which was supposed to streamline the traffic and decrease pollution.

The mayor should have received 10% of the contract, according to the deal. He has received a part of the total amount of 10%, as well as other benefits such as discounts at luxury hotels in Bucharest.

editor@romania-insider.com