Friday 15 February 2008

Corruption allegations embarrass Romanian Social-Democrats (Jan 17, 2006)

Mr. Adrian Nastase -- former Romania's PM (2001-2004), and the Lower Chamber Speaker to date.

(Initially published in www.romania-report.ro -- Jan 17, 2006)



Two top leaders of the Romanian Social-Democrat Party - PSD (i.e. former PM Adrian Nastase and former Industry Minister Dan Ioan Popescu) resigned their party offices by saying they do not want Social-Democrat image tainted during investigations regarding the means by which they get some of their family wealth.


Former PM Adrian Nastase said people close to President Basescu were behind the recent campaign against him. The yesterday Social-Democrat leaders' meeting was stained by corruption allegations against two of the senior party members, Executive President Adrian Nastase and Bucharest Branch leader Dan Ioan Popescu. The two, both member of the former Romanian government, are under scrutiny over their assets declarations, as Popescu could not justify part of the money he earned before 2004 and he will be sent to trial, while Nastase has been accused by the media of illegally obtaining about 1 million euros by using an old aunt as cover.

While waiting for the High Court decision in Popescu's case, Social-Democrats heard an astonishing declaration by Nastase at the party meeting. He told fellow party members that he is to step down from the party's leadership during the period the investigations are being carried out in the scandal caused by the one million euros inheritance.

Nastase has recently revealed in an asset statement that he inherited more than $350,000 and three apartments from a deceased aunt. He argues that his aunt made her fortune by selling family jewelry in recent years, and then investing well in the real estate market.

Nastase was already being investigated by prosecutors for a real estate deal in which he bought land from a former lawmaker who was later convicted for fraud.

Livia Saplacan, a spokeswoman for the National Anti-Corruption department, said prosecutors have now extended their probe into the inheritance received by Nastase.

"I have no reservations in saying that this complex action was carried out with the help of people close to the intelligence services. (...) This action is part of a political campaign put together at the highest level, by people close to Traian Basescu," Nastase said.

However, Nastase added that he cannot totally rule out the possibility that some of his colleagues may have worsened his situation, but said their intervention had not been decisive.

The opposition leader explained his decision to give up his position by saying he does not want the inheritance scandal to harm the party's image. Nevertheless, Nastase wanted to make clear that he will not give up his political career.

Asked if his party will continue to support him as Speaker of the Deputies' Chamber, Nastase said he will retain this position, as he has his party's full support. Nastase has recently been under pressure to resign as opposition party leader amid corruption charges.

Senior members of the opposition Social Democratic Party called on Nastase to step down as party leader in statements published Monday following allegations that he had become wealthy through improper means. "I will call on Nastase to step down. The scandal has become very embarrassing and is harming the party," said Miron Mitrea, deputy chairman of the party, in an interview with daily Cotidianul Monday.

Ioan Rus, another deputy party chairman also called on Nastase to resign. However, other party members said the party should be loyal to Nastase.

PSD president Mircea Geoana saluted Nastase's gesture, saying he hopes the allegations against him will prove to be false. "Nastase's decision shows public opinion that we are not deaf or blind," he said, adding that in this way the party aims to regain the public's confidence by convincing citizens that it is serious about fighting corruption.

However, Geoana said that Nastase had made an unfortunate mistake by specifying in his assets declaration that his family had gained the inheritance (sic!).

The statement by the former PSD head Ion Iliescu was more reserved than expected, taking into consideration the close political alliance which had existed between him and Nastase. "Nastase's gesture was correct, (...) it was a gesture of honor," Iliescu said.

The Prime Minister Tariceanu urged Nastase to also give up his position in the Deputies' Chamber. "The Liberal Party publicly asks Nastase to take responsibility for his actions and withdraw from the lead of the Deputies' Chamber so he does not affect the parliament's image," Tariceanu said.

Nastase, who was Romania’s prime minister from 2001 to 2004, has denied any wrongdoing and suggested that allegations that he profited by buying under priced real estate in exchange for political favors were politically motivated. In one of several real estate deals, Nastase's wife allegedly bought a plot of land in 1996 for 2,200 euros, a tenth of its real price at the time, newspaper Evenimentul Zilei reported. That land is now worth 2 million euros, the paper said.

Nastase lost the presidential race to President Traian Basescu in 2004, but still acts as Speaker of the Lower Chamber.


Romania Report & sources (AP, Mediafax, Bucharest Daily News)

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