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Former PSD deputy reveals how politicians conceal their wealth: 1pc of the state budget leaks through 350 companies
Sociologist Alin Teodorescu, former social-democrat (PSD) deputy, has revealed during the show ‘In front of you’ at Digi24 TV that the explanation for the large wealth of some politicians lies in the law on the non-nominal shares at the bearer, romaniajournal.ro reads. The former PSD deputy also said that these companies include Teldrum, about which the press wrote that it belongs to Liviu Dragnea (current social-democrat chairman – our note). “It was known who steals,” he added according to digi24.ro.
„Politicians participated in the management of public funds. In Romania, over the past 30 years, we are talking about nearly EUR 1,000 billion. If 3% were stolen, they were stolen – according to the first SRI report the 1997 some 30% were stolen – but let’s say 3% were stolen, it means EUR 30 billion for 500-600 people who were in leadership positions,” Alin Teodorescu said.
Asked how politicians could conceal this money, he explained that this is allowed by a ‘line’ in Law 15 and Law 30 of 1990, which allow you to own non-nominal shares at the bearer.
“It’s copied from an inter-war law that could be changed right away, there are 350 firms with non-nominal shares at the bearer, including Teldrum. If the law is amended, these companies should disclose their owners. There are 350 companies in the country in this situation. According to some estimates, about 1% of the annual budget leaks away though them,” Alin Teodorescu said.
The sociologist explained that if these laws since 1990 would be amended, either by governmental initiative or by a parliamentary initiative, then the owners of these 350 companies that run approximately 1% of Romania’s budget each year should declare ownership and they could be known.
Asked where he has the information from, the sociologist replied it is public information, at the Trade Register and at the Ministry of Finance.
“There are some groups that conduct studies. You will see that the owners of Teldrum are in Brazil, Madagascar, Cyprus and probably Indonesia – I do not know, I invent – they are off-shore companies. Look how many off-shore companies win big auctions on the Electronic Public Procurement System (SEAP), “Alin Teodorescu added.
Asked if there was any attempt to amend this law, Adrian N?stase’s former adviser said ‘yes’: “In 2004 there was an attempt to amend the law and to eliminate the system by which the owners declare their property only when they show up at the shareholders assemblies.”
Asked who tried to, the sociologist replied that “the government tried, but I have no proof, so we do not talk about it.”
Tudose will try to remove Dragnea from PSD helm if his claims risk compromising him
At the level of Social-democrats -PSD members with functions in ‘middle management’ (the local and central state management), the impression was formed that the party was taken over by the intelligence services in Romania, sociologist Alin Teodorescu, a former deputy and adviser to PM Adrian N?stase, has told Digi24 TV. In this context, he said that Prime Minister Mihai Tudose ‘seems’ close to the Romanian Intelligence Service (SRI) and warned that the current head of Victoria Palace is less malleable than Sorin Grindeanu and will not hesitate to try to remove Liviu Dragnea from party leadership, if the demands on justice would compromise his image.
Ponta was an undercover officer
He recalled that “Victor Ponta and the clique formed around him – Banicioiu, Sova, Ghita and all the others around him, it was well known in the party he was a former officer even during the time when he was a prosecutor,” Alin Teodorescu said. (Asked whether this was a legend in the party, he said that he was not a legend, it was information. “He was known to be an undercover officer or was had been an undercover officer in a certain period of his life,” Alin Teodorescu said).
“And then, it continued with Tudose,” Teodorescu added. “I do not know about Grindeanu, but about Tudose we do not know if he’s an undercover officer, but he’s very close to SRI, along with the whole group that supports him, there’s a group there, with Vlase, and others,” Alin Teodorescu added.
Asked about the part played by Dragnea in relation with the information services, Teodorescu said it is very interesting: “At the beginning of his party chairman term he was against a group of undercover officers, agents of the Romanian information services. Lately, it is seen that he hasn’t much to do about it or he is looking for a bridge, as the nomination of Mihai Tudose means conceding to SRI in this case, as it was conceding to SIE in Victor Ponta’s case.”
The sociologist said currently Liviu Dragnea resists the services attacks, but Mihai Tudose seems to be from the ‘SRI movie’.
Dragnea needs to amend the laws on justice
“Dragnea must and wants to amend the laws regarding justice. If he doesn’t, he has no chance to be prime minister, to run for presidency, no chance to avoid a second sentence and to avoid jail and – after two attempts, by the executive in January and by the parliament in May, both unsuccessful due to the public reaction, in the first case and to the Romanian and foreign institutions in the second case – he is trying now to solve this with Mihai Tudose. But Tudose is less malleable than Grindeanu. I know him pretty well. If he doesn’t succeed to solve Dragnea’s problem legally and without getting compromised, then he will try to remove Liviu Dragnea, which would lead to turmoil in the party,” Teodorescu said. He added this would be a second crisis, but this time Tudose will have support in the party and it would be fatal for Dragnea. “We will witness Dragnea gradually giving up,” Alin Teodorescu said.
The growing support for Tudose shows that party members believe more and more that Dragnea is toxic for the party. “Unfortunately, there’s no alternative to Dragnea. When talking about Adrian Nastase the alternative were Ponta, Geoana, Mitrea, Rus, Dincu, many names. Now there’s no one, as besides Dragnea there’s no mechanism for political selection for a next team,” Teodorescu said.
He concluded by saying Victor Ponta will not return to PSD. “Victor Ponta and Mircea Geoana have done things against the spirit of the party and have thrown mud to the party. PSD does not forgive that,” Teodorescu said.