DNA: Ex-Economy Minister Ion Ariton put pressure on state-owned companies to sponsor Bute Boxing Gala

The National Anti-corruption Directorate (DNA) on Monday asked the Parliament to allow it to prosecute ex-Tourism and Regional Development Minister Elena Udrea and ex-Economy Minister Ion Ariton, in the Gala Bute case where searches were conducted in Bucharest and four counties in the morning, about transactions between state institutions and private companies participating in the organisation of Gala Bute, a sportive event organised by the company of the former President of the Romanian Boxing Federation, Rudel Obreja, and which benefited from an important financial support from the state.

Head of the National Anticorruption Directorate (DNA) Laura Codruta Kovesi sent Romanias Prosecutor-general the papers needed for the notification of the Chamber of Deputies in connection with the request for the start of the prosecution of deputy Elena Udrea, who, at the time when the suspected crimes were perpetrated, was filling the position of Minister of Regional Development and Tourism.

According to a DNA release sent on Monday to Agerpres, the request for the start of prosecution proceedings zeroes in on the crimes of abuse of power and drawing of undue benefits for self or others, the attempt to use fake documents, the submission of inaccurate, incomplete or false statements for unduly accessing funding from the EU budget and graft.

The deeds under the spotlight are connected to the supposedly illegal award and use, between 2010 2012, of funds under the management of the Ministry of Regional Development and Tourism.

On June 24, 2011, the Ministry of Regional Development and Tourism awarded a contract worth 10,175,168.44 lei under which company SC Europlus Computers SRL [owned by then head of the Romanian Boxing Federation Rudel Obreja] was to provide services for Romanias promotion in the events that were to accompany the International Professional Boxing Gala organised by the Romanian Boxing Federation. The contract was awarded without negotiation and without the publication of an advertisement, and the amount was to be repaid from European funds. Under this contract, on February 1, 2012, the Ministry of Regional Development and Tourism paid 8,116,800 lei for the promotion services. The public funds were used in a manner that is prohibited by law, specifically for the financing of a sports event organized by a trading company and the amount transferred under the contract represents in its entirety a loss to the Ministrys assets, the release reads.

DNA shows that the real purpose of the contracts conclusion was that of ensuring the necessary funds for the organization of the said boxing gala and the procurement of advertising services was actually just a formal smokescreen, because Ministry did not really need such services and the sole purpose of such actions was to give all these moves the appearance of legality. The anti-corruption body holds that Elena Udrea was actually after electoral benefits, seeking to link her name to that of high-profile boxer Lucian Bute, who was to be the top attraction of the gala. The contract was pushed through under the umbrella of the project Promoting Romanias tourism brand that was supposed to get funding from the European Regional Development Fund.

Yet, the prosecutors note that the contract was allegedly awarded in breach of legal public procurement procedures and the services acquired are not included in the categories of expenditures that are eligible for European funding programs. These circumstances entailed the refusal of the managing authority of European funds to settle the amount, so that, because of the public servants faulty on-the-job acting, the said amounts were fully covered from the state budget. The criminal investigations conducted so far revealed that then Minister of Regional Development and Tourism Elena Udrea had the most important contribution to the perpetration of these deeds and the final outcome.

The cited source underscores that Elena Udrea decided to have the gala organised following informal talks with Rudel Obreja, that she pressed for the passage of the regulatory acts that defined the legal framework for the financing of the event, repeatedly asked the public servants reporting to her to meet Rudel Obreja to identify solutions for the contracts conclusion and directly participated in the establishment of the budget the Ministry of Regional Development and Tourism was to assign outside the regulated public procurement procedure.

The existing evidence also shows that Elena Udrea used her influence as a Minister and Deputy Chairperson of the party at rule on a bank decision-maker and the Ministrys Secretary-general to elicit the fast-track grant, to S.C. Europlus Computers S.R.L, of a bank loan under more favorable than usual terms, reports Agerpres.

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DNA: Ex-Economy Minister Ion Ariton put pressure on state-owned companies to sponsor Bute Boxing Gala