Prokon triggers earthquake in Romanian politics
At the beginning of the year we reported extensively on the bankruptcy case of the wind power group Prokon from Itzehoe a small city near Hamburg. In the centre of most stories: the company founder and self-proclaimed eco-visionary Carsten Rodbertus. In January we revealed his shady business with Romanian forests. Last week the joint investigation with journalists of the non-profit project RISE has triggered a political earthquake in Romania. A corruption scandal comes to light that reaches into the highest government offices.
On Wednesday, investigators of the Romanian National Anti-Corruption Office (DNA) searched more than 20 offices and apartments in Brasov, Bacau, Bucharest and Covasna. They investigate Adam Craciunescu, the head of the state forestry supervision Romsilva, as well as two prominent and well-connected members of the Romanian Parliament. Among them is the father in law of current Prime Minister Victor-Viorel Ponta of the Social Democrats. The allegations of the DNA: corruption, bribery and dirty deals with Romanian forests.
In January we documented one of those strange deals, when we disclosed a pre-sale contract. In 2013 Prokons Carsten Rodbertus and two partner companies wanted to buy 43,000 hectares of forest for 140 million Euros from two Romanians. Prokon had bought forests for 75 million Euros before. The wind power provider claimed, that with the closure of the new deal it would become the largest private forest owner in the Eastern European country. “Our goal now is of course not to cut these forests down and to draw a short-term profit, but rather to operate a sustainable forest management”, Rodbertus announced at that time. The truth is different: The Romanian forestry sector is a plagued business. Illegal lumbering, smuggling and fraud – for decades authorities struggle to fight these plagues.
The RISE project and “Welt am Sonntag” published the details of the pre-sale contract simultaneously in January. After, the forest purchase was never realised and the insolvency administrator of Prokon is currently trying to recover the 75 million Euros stockholder money already invested in Romanian woods. But that is not all. Our colleagues from RISE kept the investigation alive, dug out fact after fact and published more about the dirty business with forests in their home country.
Their work is likely to be an important reason for the Anti-Corruption DNA authority to look into the state forest administration Romsilva. Andrei Ciurcanu and Paul Radu from the RISE project explained in an interview the scope of the recent events:
At a general level: What is the affair about?
It is about forests that had been expropriated in the late 1940s by the Communists – for example forests that belonged to noble families before. These vast woods can be recovered today, if certain inheritance conditions are fullfilled. This recovery process became a playing field for fraudsters. One example: In 2013 the people who have offered Prokon 43,000 hectares of forest were most likely not allowed to do that.
What happened last week?
The national anti-corruption agency DNA has raided offices and buildings. It became public that prosecutors have been investigating senior politicians and officials for months. They have it bugged telephones and overheard suspects face meetings with directional microphones. They have also applied for waiver of immunity of several Members of Parliament.
Who are the main suspects?
Three names are particularly noteworthy. Adam Craciunescu, the Director of the national forest authority Romsilva and two MPs of the Socialist Party PSD Viorel Hrebenciuc and Ilie Sarbu. The latter was previously Minister of Agriculture.
What are the accusations against them?
They should have helped that forests were returned to people who had no right to claim them. The investigation addresses more suspects, including the two Romanians who have signed the pre-sale contract with Prokon over 43,000 hectares of forest.
What is the dimension of the scandal?
The accused Ex-Minister Ilie Sarbu is father of Daciana Octavia Sarbu, a PDS-member of the European Parliemant in Strassbourg and Brussels. She is married to the current Romanien Prime Minister Victor-Viorel Ponta (PSD). The scandal has therefore reached a dimension that he puts the whole country in an uproar. As we speak there are new developments, Mr. Hrebenciuc just announced his resignation.
What role did the press reports play?
Well, we cannot say precisely, but our common research with “Die Welt” earlier this year and the following stories must have helped the anti-corruption investigators. The publications might even have triggered the investigation.
Is the national anti-corruption agency DNA really independent?
Yes, we have the impression that they are. Recently they have investigated against corruption suspects of all different political camps.
What does the investigation mean for the presidential elections in December?
Prime Minister Ponta wants to compete as a presidential candidate. Of course it does not reflect well on him, if his father in law is involved in a large corruption scandal.