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September 25, 2021

Transport Ministry, under EC scrutiny

The companies reporting to MTI illegally spent nearly EUR 142 M, without observing legislation or in an abusive manner, based on the audit targeting time period 2009 – April 2012.

The companies reporting to Ministry of Transports and Infrastructure (MTI) spent EUR 141.8 M, without observing necessary legal requirements or in an unjustified manner, based on an audit report conducted to cover the time period 2009 – April 2012 and presented this Friday by Transport Minister, Ovidiu Ioan Silaghi, in a press conference in Satu Mare. Certain aspects related to the use of EU funds remain to be also checked by the European Anti-Fraud Office, based on a press release from MTI, cited by Mediafax. Also, Ministry specifies that according to the draft of the Audit Report no.2011/RO/REGIO/J2/995/1, the European Commission asked for financial corrections in case of several projects, namely the construction of Orastie – Sibiu motorway (correction amounting to RON 428.9 M), Nadlac – Arad highway (RON 168.8 M), rehabilitation of DN 24 and DN 24 B (RON 39.9 M). The volume of corrections asked for amounts to RON 636.69 M (EUR 141.48 M).In case of National Railway Company CFR SA, the Court of Accounts found out that the prejudice against the public patrimony of state amounts to RON 42.5 M (EUR 9.4 M), following forced foreclosure of 101.5 km of railway in favour of private businesses. Also, the Anti-Fraud Fight Department (DLAF) found out breaches of legal provisions in the awarding of works contracts worth over EUR 52 M, which results in financial corrections charged up to 100 per cent, respectively their payment from the state budget.Also, for the rehabilitation of Bucharest – Constanta railway, delays of more than 2 years were found and additional amounts over the contract values up to RON 451 M (EUR 110 M).The document outlines also that PM Control Body found that on May 31, 2011, ANAF levied insuring sequesters over the assets of the company, worth over RON 700 M (EUR 155.55 M) and because of poor management, CFR private patrimony was seriously damaged. In addition, the improper monitoring of the implementation of the contract «Rehabilittaion of Bucharest – Constanta railway, segment Baneasa – Fundulea, Lot no. 2» led to a litigation within which CN CFR SA had to pay RON 38.2 (EUR 8.5 M)

Major irregularities also in case of the highway and roads companyRegarding National Company for Highways and National Roads of Romania (CNADNR), following the legal use and repayment of funds resulted from refundable external loans, the Accounts Court found out that in case of the financing contract between European Investment Bank (BEI), Romania and CNADNR, in relation to the fund provision for the roads rehabilitation project, stage 5th., there was a raise by RON 138.1 M over the project cost (EUR 36.6 M), following the inclusion of non eligible amounts, such as duties and taxes, normally paid from co-financing. Also, payments amounting to RON 11.04 M (EUR 2.5 M) were made without the observance of contract clauses and thus covered by the state budget.In case of the EIB Loan Agreement 22417 on financing the project for the construction of Arad – Timisoara highway and the detour option of Arad, illegal payments amounting to RON 6.04 M were found (EUR 1.03 M), without justifying documents to support the delivery of goods or the performance of services and works as well as others. In addition, CNADNR SA used direct awarding of legal consulting contracts worth RON 57.3 M (EUR 12.7 M).In case of Constanta Maritime Port Administration National Company, an illegal payment of RON 1.74 M (EUR 415,182) was found, a prejudice amounting to RON 487,123 because of absence of prefabricates composing the value part of the work in progress.

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