Arrest of SNP Petrom head - a hatchet from whom to whom?

Ioan Popa, the general manager of the largest company in Romania, SNP (National Oil Company) Petrom, was unexpectedly arrested yesterday, on a five-day period, following some oil deals operated by PECO Braila subsidiary.

Popa was arrested by the Prosecutor’s Office within Braila Tribunal under the accusation of having delivered fuel to firms that had debts to Petrom Braila, total damages amounting to 17.416 billion lei.

“I am tempted to consider there is something fishy about Popa’s arrest, as the procedure that culminated in the arrest was illegal. I think something completely different is at stake here,” the Romanian Industry and Trade minister Radu Berceanu stated, without exactly specifying whether a political conspiracy is involved.

According to the Industry minister, “Popa had known he would be arrested since early this week and he was certain a set up was involved and that other connotations would be given to this case.”

Braila county prime prosecutor Gheorghe Ivan stated that Popa approved on April 8, 1999 several deliveries of diesel oil and petrol to Insula Mare a Brailei company, although the firm already held outstanding debts to Petrom. Ivan says that on August 31, 1999, Popa continued to approve the delivery of oil products to the same company, causing a loss of 16.6 billion lei.

Braila prime prosecutor added that Ioan Popa also approved fuel deliveries to Ina Company Agrozootehnica based in Bucharest, which already held debts standing at 650 million lei, the debit coming to 816 million lei.

Even though the reason for the arrest seems plausible enough, the evolution of events raises many questions. Such an arrest means more than the involvement in a deal, and is generally extended to the level of payback and struggles for power.

Thus, Gheorghe Ivan stated that on Friday he was contacted by phone by a person saying he was Ioan Popa, the general manager of Petrom, and was willing to be heard in the case PECO Braila.

Ivan asked him to come to the General Prosecutor’s office on Tuesday, June 13, with the documents referring to this business transaction. Because on Tuesday at 10 o’clock, when the meeting was scheduled, Ioan Popa was not there, the prime-Prosecutor says he contacted SNP general manager by phone for explanations.

Popa said that he knew nothing about the meeting, adding that it was not him who made the call. Popa also rejected Ivan’s request to come to the hearings, motivating that he was very busy.

“Braila Prosecutor’s Office during the same day sent some police officers to Bucharest, who told Popa to hand them the necessary documents and go with them. SNP manager rejected both requests. The police communicated this to the prime prosecutor who issued a summoning warrant,” Ivan also said.

In retort, Trade and Industry minister Radu Berceanu yesterday said that Braila office committed an abuse when it issued the warrant for summoning the Petrom official without a previous subpoena.

“We accidentally witnessed the moment when the summoning warrant was enforced and the procedure applied by the police reminded me of the Militia before 1989,” Berceanu said.

At the same time, he believes that in the case of Petrom manager the presumed innocence was completely ruled out. “I plead for the innocence of Mr Popa but as a witness to the moment of arrest, it seems to me that certain constitutional rights were completely disregarded,” the minister added.

On the other hand, Gheorghe Ivan said that Ioan Popa would also be investigated in the case of the 15 arrests at Petrom Braila, damages being estimated at 12 billion lei. The investigation is to establish subsequently whether Popa knew about these crimes.

According to some statements made by Ivan last month, the Prosecutor’s Office arrested several members of the former and current management at Petrom -Braila for abuse and negligence.