DNA Prosecute Former Management Of Turceni Energy Complex

• Prosecutors say the former management purchased a dysfunctional forestry tractor and paid four times the import price

C.D.

The National Anti-Corruption Directorate (DNA) territorial bureau in Targu Jiu have decided to prosecute the former management of the Turceni Energy Complex (Complexul Rovinari Turceni) for having purchased "a useless, worn-out machine tool" for an overestimated price, DNA informed in a press release.

Thus, the local prosecutors decided to press charges against three former managers of the Turceni Energy Complex - Cristea Dumitru (former General Manager), Boiangiu Silvica (former Investments Manager) and Vasile Ioan Viorel (former Commercial Manager) for abuse in office against public interests (meaning that they brokered an unlawful material advantage for a third party) and Surupaceanu Mugurel and Busan Sorin, former Directors of SC Voron Trans SRL, for money laundering and complicity to abuse in office against public interests.

• The facts

According to the indictment, in 2007, Surupaceanu Mugurel, who was then in control of Voron Trans SRL via Busan Sorin, whom he had imposed as Director, made a deal with Cristea Dumitru, whom he had known for several years, to sell a multifunctional forestry tractor to SC Complexul Energetic Turceni SA via Voron Trans SRL. "The amount of 836,570 lei, which the Turceni Energy Complex eventually paid for the equipment was four times more than the import price, including all taxes and commissions," the DNA prosecutors wrote.

Further on "Voron Trans SRL did not have the sale of such equipment as registered business, and did not have any experience or any employees. The company concluded the year 2006 with a turnover 25 times smaller than the amount it was going to receive from the sale of the forestry tractor to the Turceni Energy Complex."

Based on the aforementioned deal, Cristea Dumitru, in his capacity as General Manager of the Turceni Energy Complex SA, ordered the subordinated Investments & Land Acquisition Department and the Commercial Department to organize a procurement procedure based on his instructions concerning technical specifications and the names of the companies to be invited. The procedure was rigged in such a way as only Voron Trans SRL could win.

According to the DNA, he approved and signed the documents stating the urgent need to buy a multifunctional forestry tractor, as well as changes to the annual procurement plan, which was increased and complemented with the forestry tractor. The prosecutors also established that Cristea Dumitru had illegally decided to buy the equipment based on negotiations without the prior publication of an invitation to tender and then accepted the offer made by Voron Trans SRL without complying with the legal provisions on public procurement. Although the equipment was old and had several dysfunctions, it was received and paid for as fully functional.

"The defendants Boiangiu Silvica and Vasile Ioan Viorel also participated in the aforementioned criminal activities in their capacity as Investments Manager and, respectively, Commercial Manager of the Turceni Energy Complex," the prosecutors wrote. According to the DNA, the acquisition of the forestry tractor was made in violation of the legal provisions on public procurement, which means that the full amount of 836,570 RON paid illegally by the Turceni Energy Complex to Voron Trans SRL is classed as damages to the State-controlled company.

• The money transfers

Of the total amount, 586,570.04 lei was transferred to Tutto Mobili SRL, a company controlled by Surupaceanu Mugurel via proxies, DNA concluded. In order to conceal the true nature of the money transferred from Voron Trans SRL to Tutto Mobili SRL, the former purchased from the latter a piece of machinery for wood processing. The price was 586,570.04 lei. The fact was that Voron Trans SRL did not need such machinery and therefore never used it.

• Case reaches Supreme Court

The DNA prosecutors announced they had sequestered several assets of Cristea Dumitru (urban land, a building and an auxiliary building) located in Targu Jiu, as well as the amount of 61,867.32 RON deposited in a bank account in his name. As Surupaceanu Mugurel became a Member of Parliament in 2008, the case was forwarded to the Supreme Court of Romania.