The Busteni deal – the OMU project worth some $70 million, in which Virgil Teodorescu, Minister Serban Mihailescu’s advisor, and other ten members of the central and local administration are charged of having demanded $2 million bribery is becoming more serious.
All the institutions authorised to handle the case – the National Anti-corruption Prosecutor’s Office (PNA), the Governmental Control Body and the European Anti-Fraud Office (OLAF) in Brussels, announced they were conducting investigations. The scandal broke out overnight, after businessman Octavian Ionescu, former football player of Sportul Studentesc, turned himself in. Ionescu said he gave $95,000 and other gifts as bribery to governmental advisor Virgil Teodorescu, to the chairman of the Prahova County Council, Busteni mayor and other officials in order to obtain guarantees and approvals for beginning a major tourism investment in Busteni. However, as Octavian Ionescu says, the governmental and local administration officials had allegedly demanded a $2-million bribe. Important names are mentioned in this case, which comes a year after the Pavalache affair. Octavian Ionescu said that, in order to get the approvals for the investment, he turned to President Ion Iliescu, Minister Serban Mihailescu, Mircea Cosma – chairman of the Prahova County Council, and to the mayor in Busteni. The businessman added he also went to Finance minister Mihai Tanasescu to ask for governmental warranties for the investment project, but he was turned down. Cosma yesterday said that Prime Minister Adrian Nastase and Dan Matei Agathon, former minister of Tourism, were aware of the deal. Those mentioned by Ionescu, except for Minister Serban Mihailescu and Virgil Teodorescu, are dismissing the allegations. However, Minister Mihailescu and the governmental advisor are on leave.
The history of the “Busteni Deal” dates back to 2001, when businessman Octavian Ionescu says he wanted to invest in a large tourism project in the Busteni area.
The investment programme entailed a partnership between the local authorities and several Swiss firms. The financing should have come from the EU and foreign partners’ funds, as well as in form of a credit secured by the Romanian Government. The investment project was also published on the Government’s website.
Two years later, a scandal surrounding the Busteni deal broke out, a year after Fanel Pavalache, another advisor of Minister Serban Mihailescu, was charged for demanding $4 million bribe to influence a court decision related to the dissolution of Banca Internationala a Religiilor (International Religions Bank -BIR). The Pavalache case is still on court.
The Busteni scandal broke out after businessman Octavian Ionescu, former football player at Sportul Studentesc, turned himself in. This spring, Octavian Ionescu said he had denounced advisor Virgil Teodorescu, the chairman of the Prahova County Council, the mayor and vice-mayor in Busteni and the other central and local administration officials.
mirela.luca@zf.ro