Moldovan parliament hears reports on banks system fraud

Chisinau, 2 December /MOLDPRES/ - The parliament heard reports on embezzlement from the banking system and measures undertaken to clear up the situation at a special meeting on 2 December. Prosecutor General Corneliu Gurin, Director of the Intelligence and Security Service Mihai Balan, Director of the National Anticorruption (CNA) Centre Viorel Chetraru, Governor of the National Bank of Moldova (BNM) Dorin Dragutanu and acting Finance Minister Anatol Arapu unveiled reports. 

In the parliament plenum, CNA head Viorel Chetraru said that 44 criminal cases had been opened so far, of which 20 were submitted to courts. "In all, CNA manages 24 criminal cases, of which 11 are for getting loans by fraud, one criminal action for abuse of power, four actions on fraudulent management of Banca de Economii (BEM) regarding BEM decision-makers, and others. The overall value of the damage, according to the general prosecutor's assessments, is of 13.5 billion lei," Chetraru said.

"Presently, we have eight defendants. In trial, this process takes place with much difficulty; at the same time, I may report that 386 persons have been heard within these criminal actions, 11 searches were made, 56 seizures, 36 expertises and 49 requests for assistance abroad, which regard money circulation, in order to identify the assets and goods which may be objects of money recovery," Chetraru also said.

The prosecutor general and the director of the National Anticorruption Centre said that the attempts of dismissal, organised rallies, as well as the hearings in parliament represent interference in the work of inquiry bodies.       

Acting Finance Minister Anatol Arapu said the loans amounting to 14 billion lei, provided by the National Bank of Moldova under the government's guarantee, to prevent the collapse of the three problem banks (Banca de Economii (Savings Bank), Banca Sociala (Social Bank) and Unibank), would be turned into state debts. Transferable securities are to be issued. The conditions and terms are negotiated with the International Monetary Fund, as this action will lead to a substantial increase of the state debt.

On 20 November, Banca Sociala and Unibank returned 60 million dollars and, respectively, 140 billion dollars, to the state. And the debts of the meanwhile liquidated aforementioned three banks, stands at 13.921 billion lei, Arapu said. According to him, about 680 million lei will be paid to the National Bank of Moldova as interest, besides the debt itself.  

"Not only the banking system, but also the entire Moldova is just one step far from full collapse; therefore we resorted to providing emergency loans, of respectively 9.5 billion and 5.3 billion lei," BNM Governor Dorin Dragutanu said.

The BNM governor stressed that he had constantly been informing  the prime ministers on the situation at the three banks, especially in terms of bad credits, and the topic was discussed at the National Financial Stability Committee. BNM did not have all needed levers to cease the bank fraud, and some decisions and normative documents were suspended under court rulings.

According to Dragutanu, the second phase of investigation, carried out by the Kroll company, might last two years.

The leader of the Party of Communists (PCRM), Vladimir Voronin, said the theft from the three banks could not take place, "if a command centre would not have been." Voronin also said that tens of laws had been amended in 2013-2014, so that this operation could take place. The leader of the Party of Socialists, Igor Dodon, strongly criticised BNM, as well as other institutions.

The hearings lasted almost eight hours.

(Reporter V. Bercu, editor L. Alcaza)