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May 26, 2022

Huge irregularities at RATB, reported to the DNA

The control report of the government found that the chiefs of the Bucharest public transport company wasted over EUR 1 M. Among the problems there are big losses, law infringements in awarding acquisition contracts, as well as very high protocol expenses.

The government will notify the National Anticorruption Directorate (DNA) over possible criminal deeds identified in the activity of Regia Autonoma de Transport Bucharest (RATB) during the interval 2010-2012, identified by the Control Body following verifications made at the request of the general mayor, Mediafax reports. The control request was sent to PM Victor Ponta, last November, by general mayor Sorin Oprescu.The control note finalised last week shows, among others, that over the aforementioned interval, RATB officials covered up losses worth RON 12.1 M from the funds destined to the subsidised public transport service by changing the destination of the money, and committed irregularities in awarding acquisition contracts, which can have the constitutive elements of the crime of misuse of authority against public interests. RATB, which in 2010 and 2011 reported zero accounting profit, made protocol expenses of RON 450,967, of which RON 299,119 on products served at its canteen, pastry, drinks and coffee for the top management of the company, while another RON 10,530 were spent for 6 Mont Blanc gold and platinum-tipped pens, at an approximate price of RON 1,700-1,300 each, for the members of the RATB Board of Administrators.From the local social subsidies, motivated by the collective work contracts, RATB made expenses to the benefit of employees, their family members and pensioners, although the subsidy was not destined to them.

The manager of RATB created the office of president of the Sports Association, which was occupied by the president of the Bucharest Transport Trade Union, without taking into consideration the negative legality notice issued by the legal department, and this president participated in the collective negotiations over the expenses for cultural-sports activities, including his salary.

During the same period, the company had total losses of RON 4.7 M from secondary activities in the canteen and buffet of the company, the Predeal guesthouse and the sports association, and the profit was also diminished by provisions exceeding RON 56 M set for compensating the claims towards the municipality, registered following the failure to pay in full the subsidies for the social fare. By creating the provisions, the profit was diminished and implicitly the sums that should have been paid to the local budget, the loss being calculated at RON 30.7 M. In order to subsidise the social fare, RATB received from the local budget little over RON 1 bln in 2010 and 2011, but its accounting documents do not contain concrete data on how the subsidies were distributed.

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