Watchdog unearths dubious dealings behind Romania's economic boom

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http://www.dw.com/en/watchdog-unearths-dubious-dealings-behind-romanias-economic-boom/a-18776986

Bribery charges against employees of French water giant Veolia have raised questions about the role of corruption in Romania's economic boom. Bucharest has rebuked the agency that brought it up, Luke Dale-Harris writes.

Watchdog unearths dubious dealings behind Romania's economic boom
Luke Dale-Harris
12.10.2015

A corruption crackdown that has shaken the Romanian government to its core over the past 10 months has now extended to the world's largest water supplier, Veolia group, raising questions about the activities of Western European corporations in the EU's most corrupt country .

Apa Nova Bucuresti, the Romanian arm of the French-owned Veolia Group, has been accused of bribery, spying on its employees and buying the silence of the media in Bucharest, in an investigation by the Romanian Anti-Corruption agency (DNA). Prosecutors say the company has paid out millions of euros in bribes to Romanian officials in order to drive up the price of water for Romanian consumers, which has reportedly risen by over 1,400 percent since 2000.

Following a police search on the company's offices at the end of September, two French executives from Apa Nova - Bruno Roche and Laurent Lalague - were accused by DNA prosecutors of setting up secret bank accounts and creating fictitious contracts. Between 2008 and 2015, these were allegedly used to pay out over 12 million euros ($13.7) in bribes to two Bucharest high officials and a businessman, who in return used their influence to push through policies that would favor the company.

On October 7, the DNA stated that criminal proceedings had started against Roche, and the prosecution was continuing to investigate Lalague. Three Romanians, including the former advisor to the Bucharest mayor and a former party treasurer, have also far been arrested in connection with the case.