The expenses for hospitality, travel and entertainment that are paid from public funds are regulated accordingly to Government Decision no.714/2018, which establishes certain thresholds for different categories of officials and expenses. To reduce corrupt practices, the government has established ane-procurement systemdesigned to provide transparent publication of tenders bypubliclypublishing the names of winners and closing prices.

It should be noted that in 2020 DNA has had Mr. Crin Bologa appointed as chief prosecutor. The Police Academy lost its right to award doctorates in October 2020 by order of the Minister of Education, Monica Anisie, who also ordered a restructuring of the corruption-plagued institution. However, three in fiveof businesses report paying for private security (ES 2013). Romanians took to the street to oppose the approval of the environmentally risky project and the political corruption involved. Therefore, for this category of persons (persons exercising a public interest service) it is not a crime to receive money for performing or accelerating their professional duties. Likewise, the majority of citizens perceive bribery and abuse of power as being common among police officers(European Commission, Feb. 2014). International Centre for Settlement of Investment Disputes, the Law on Prevention, Discovery and Punishing Corrupt Acts, the Law on Preventing and Sanctioning of Money Laundering, United Nations Convention Against Corruption, Civil and Criminal Law Conventions against Corruption, On Progress in Romania under the Co-operation and Verification Mechanism 2017, Bribery & Corruption 2017, 4th Edition Romania, Freedom in the World Romania Country Profile 2016, Country Report on Human Rights Practices Romania 2016, Investment Climate Statement Romania 2016, EU Anti-Corruption Report: Annex 23, Romania, Feb. 2014, Special Eurobarometer 397 Corruption Report, 2014, Flash Eurobarometer 374 Businesses Attitudes towards Corruption in the EU, 2014, Navigating Todays Complex Business Risks Europe, Middle East, India and Africa Fraud Survey 2013. Business Review: Teamnet International Files for Insolvency, 20 March 2017. Moreover, the money, valuables or any other benefits shall be confiscated from the bribe giver if he offered or promised to them, but his offer was declined. Almost half of business respondents believe corruption has prevented their company from winning a public tender in thepastthree years (European Commission, Feb. 2014). 292 RCC). Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website.

In fact, widespread corruption in the process of obtaining public services constitutes the main hurdle to a functioning public administration(European Commission, Feb. 2014; ES 2013). Courts sentenced Solomon Wigler, senior advisor to former Bucharest mayor Sorin Oprescu, to four years in jail without parole for aiding a private firm with obtaining building permits in exchange for a bribe of EUR 200,000. Foreign investors complain of time-consuming procedures related to securing necessary zoning permits and property titles (ICS 2016). The anticorruption Romanian legislation also includes the specific Law no.78/2000, which defines and completes the legal framework in this area, also providing for some more particular crimes and specific prohibited conducts. In addition, an electronic system for filing and paying taxes has been introduced (DB 2017). Also the management of legal entities should try to be more attentive to the actions or inactions of all the employees and to try to better explain all the legal repercussions which could occur in the case when an employee perpetrates crimes of bribery or corruption. Therefore, all payments in relation to the professional duties of the receiver can be considered a bribe in Romania, even if they were made before, at the same time or after the performance of the duties, if it was done in connection to such performance of duties by the clerk. During 2021, the registration and settlement of cases related to crimes within the competence of the National Anticorruption Directorate in connection with the COVID-19 pandemic continued yet no significant cases, names or illegal amounts were made public. or a substantial perspective (e.g. The fight against high-level corruption, declared a strategic objective since 2005 and a threat as great as terrorism or other serious crimes, is however very much linked to Romanian states political priorities, which for the moment has led to the topic disappearing from political discourse, media attention and strategic documents. Invoking emergency powers wont solve it. To find our more details, view our Cookie Policy. IFLR: The New Criminal and Criminal Procedure Codes: Important changes towards modernising the Romanian legal system, 14 October 2014. According to the journalist, 74.3 of the theses conducted at the institution between 2011 and 2016 are suspected of plagiarism. Senior public officials are required to disclose their assets. In January 2017, the government passed an emergency decree which decriminalized official misconduct resulting in damages less than USD 47,600. Through this law, the persons who submits any kind of notice (complaint or letter) about an infringement of the law, can benefit from a certain protection from the public authorities. Companies dealing with the customs administration contend with high corruption risks. DNA has not provided an update on the investigation since September 2015. When these things happen, the activity of a business can be totally interrupted. However, if the bribe giver previously announced the authorities about the bribe that he was going to offer, the money, valuables or any other assets given shall be given back to the person who provided them, be it the bribe giver or the authorities. There are no specific regulations for foreign public officials and thus they have to comply with the general rules applicable to all persons while in Romania. ERCAS: Major victory for civil society in Romania, 10 December 2013. Moreover, smear campaigns aimed at particular NGOs have been conducted with the help of politically biased media (BTI 2016). This limits the extent of investigative journalism and the likelihood of uncovering corruption cases (FotP 2015). Romania Insider: Another Romanian millionaire get out of jail, 7 April 2015. Due to varying update cycles, statistics can display more up-to-date Another challenge is the means in which such corruption cases are ascertained, respectively what evidence is gathered and in which way. In March 2017, a lawmaker introduced a bill granting prison pardons for offenses that include corruption (Reuters, Mar. Romania is a member of theInternational Centre for Settlement of Investment Disputes(ICSID) and is a signatory to theNew York Convention 1958on the Recognition and Enforcement of Foreign Arbitral Awards.

In an attempt to further restrict investigative journalism, a draft bill proposed the criminalization of the disclosure of information from criminal cases, including corruption investigations. The fact that, for a long time, the executive positions of those institutions were occupied on an interim basis has also affected their ability to cope with constant, ongoing pressure and professional challenges. But opting out of some of these cookies may have an effect on your browsing experience. In another high profile case, magistrateMirceaMoldovan, who after an appeal in 2016, was convicted to twelve years and two months of imprisonment for multiple acts of corruption and six counts of bribery (Global Legal Insights, 2017).

Moreover, the economic recession that appears to be inherent might lead to acts of corruption in order to try to save or develop certain businesses, resulting in a necessary attention towards the prevention measures both by the authorities and the companies. The pair will also have to serve 120 days of community work and have been ordered to compensate the victim with 80,000 lei (more than 16,200 euros), the Bucharest Court of Appeal said on Monday. More than one-third of surveyed citizens believe that bribery and abuse of office are widespread among officials issuing building permits (European Commission, Feb. 2014). This website uses cookies to improve your experience while you navigate through the website. Furthermore, procurement officials are stronglyperceived to showfavoritismwhen deciding on contracts (GCR2016-2017). After a firestorm of media criticism, the bill has been significantly watered down, but remains under consideration. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. Thus, in the event of legal proceedings, including defamation, infringement of copyright, professional secrecy, confidentiality and protection of personal data, the criminal and civil liability of these whistleblowers cannot be triggered. Another possibility is to formulate an exception of unconstitutionality against certain legal provisions but, again, this can happen only during a trial in which the criticised legal provisions are applicable and their application is considered as violating the Constitution. The number of steps necessary to obtain a construction permit is significantly higher than the regional average (DB 2017).

2022 Legalease Ltd. All rights reserved, Registered company in England & Wales No. The countrys anti-corruption agency has pursued a number of corruption cases, and in 2016 managed to prosecute 713 officials, according to the AP. If passed, the bill would provide a prison sentence for offenders (NiT 2016). Moreover, there isalack of consistency and predictability in the jurisprudence of the courts (ICS2016). The legal framework is established by art.135 RCC: (1) The legal entity, except for the state and of public authorities, is criminally liable for criminal offences perpetrated in performing their object of activity or in their interest or name. The most relevant, yet indirect, is Law no.129/2019, which is the transposition of the 4th AML Directive (EU) 2015/849, replacing the former Law no. Firstly, when such investigation is started, the criminal investigation authorities institute seizure measures and sometimes block all the bank accounts of the legal entities. 405/2016 created quite a big impact in ongoing cases (criminal procedures and trials), as it limited the crime to breaches of only primary legislation (laws and government ordinances) and not to other subsequent legislation (secondary or tertiary). The decree would have spared the leader of the ruling Social Democratic Party, who is facingcharges of abuse of power for granting contracts worth USD 26,000 to associates who allegedly performed no work (The Economist, Feb. 2017). The PSD also reportedly threatened to discuss suspending him if he put the move off any longer.

On the same route, the Romanian legislator should renounce to the soviet-inspired general incrimination of abuse in office and adopt a modern, more precise incrimination, equivalent to the abuse of power, which to establish a threshold or clearer lines to guide licit conducts. The system has increased government efficiency and has somewhat reduced vulnerabilities to corruption, but overall supervision and compliance with procurement regulations remain inconsistent (ICS2016). In regard to public institutions, these are criminally liable for criminal offences perpetrated in exercising an activity which can be an object of public domain. Romanian Police Academy Chiefs Sentenced for Threatening Journalist. Romania is one of the most corrupt countries in the European Union, according to Transparency International. And on Saturday, thousands of protesters returned to the streets to call for the government to resign. Media Freedom Deteriorated in Europe Amid Pandemic, Report Warns, Romanian NGOs Condemn Threat to Limit Access to Information, Romanian Journalists Under Pressure to Disclose Sources, Bulgaria, North Macedonia Should Enhance Relations, Srebrenica Anniversary and North Macedonia's EU Accession Path Exacerbate Old Tensions, Brussels Emergency Plan to Reduce Gas Use to Test EU Solidarity Again, In Montenegro, Ukrainian Refugees Struggle with Work and Rent, Moldova Marks 30 Years Since Ceasefire Ended War on Costly Terms, The Czech Exception: A Public Broadcaster Dodges the Illiberal Bullet, Greece Seeks Answers After Plane Carrying Serbian Arms Crashes, Belgrade Bust: Behind the Parties and Plush Condos of Serbias Capital, Albania Blames 'Massive Cyber Attack' as Govt Servers go Down, Albania, North Macedonia, Brace for First EU Accession Talks. Sercan has continued exposing widespread plagiarism among the Academys top officials and professors. While Romanias anti-corruption legal framework is in place, enforcement remains weak. The number of days and proceduresrequired to get electricity is higher than the regional average (DB 2017). Undoubtedly the Covid-19 pandemic had an impact in the investigation of the crimes, respectively the activity of all the Prosecutors Offices has been reduced during the last year.

The businesses face several difficult challenges when they are investigated by the authorities for, possibly, perpetrating bribery or corruption issues. Interactions with Romanias public services present high corruption risks for businesses. We also use third-party cookies that help us analyze and understand how you use this website. Reuters: Romanian Lawmaker Proposes Pardoning Corruption Jail Sentences, 6 March 2017. In 2021, 27 cases were resolved, out of which in 7 cases regarding 19 defendants it was ordered to notify the courts through 3 indictments and 4 plea agreements. The decisions of the prosecutor can be challenged before their hierarchically superior prosecutor or before a Court, depending on the nature of the decision. Anti-corruption legislation criminalizes both active and passive bribery,extortion, bribery of foreign officials, abuse of power, influence peddling and money-laundering. This website uses cookies to improve your experience. The tax administration carries moderate to high corruption risks for business. The threatening message was sent via SMS in April 2019 to the cellphone of Emilia Seran, a journalist with Romanias publication PressOne who had exposed the deans plagiarism of. Join our mailing list to receive updates on new Guides: Legal Disclaimer. Romanian Police uncovered and dismantled Monday a suspected human smuggling organization believed to have tried to smuggle 30 illegal migrants further into the EU from Romania, according to a Europol, The former head of Romanias National Anti-corruption Directorate, Laura Kovesi, was, Romanias Disgraced Former Prosecutor Apprehended in Italy, Romania Anti-Corruption Warrior Barred From Travel, Romania: Police Raid Town where Disabled were Enslaved, Europol Arrests 12 in Crackdown on Trojan Horse Cyber Crime Across Europe, Romania: Deputy Chief of Bucharest Police Detained over Bribe. Companies cite burdensome procedures, frequent bribes, and the time-predictability of import and export procedures as the largest concerns (GETR 2016). Furthermore, a new system called PREVENT was established in late 2016 allowing the imposition of ex-ante check on public procurement deals (CVM2017;ICS2016). This process is further complicated by the unpredictable legislative approach and interference by parliament without consultation of key state institutions includingthe judiciary (CVM 2017). Furthermore, on the basis of the criminal law territoriality principle, the RCC admits the possibility that foreign legal entities which commit crimes in Romania be held criminally liable, to the extent in which the other conditions stated by the Romanian criminal law are fulfilled. Furthermore, there is no referential case law in this respect. Clicking on the following button will update the content below. In the Romanian criminal procedure no lawyer-led investigations are applicable. An important provision introduced concerns the exoneration of liability of whistleblowers in the public interest. While Romanias National Anti-Corruption Directorate (DNA) investigates and prepares a high number of cases for trial each year (HRR 2016; CVM 2017), the repeat of similar offenses suggests that corruption prevention and deterrence has so far not been effective (CVM 2017). Publics: Sofia Water Utility CEO Resigned after Veolia Corruption Charges in Romania, 13 January 2016. Center for International Environmental Law: Romanias Government Agrees to a Complete Lack of Transparency in the Rosia Montana Arbitration Case, 5 October 2016. and over 1Mio. Romania Journal: Anti-corruption, police heads detained for corruption in Prahova, 17 August 2015. The public institutions are not criminally liable for criminal offences perpetrated in performing an activity which can not constitute an object of private domain. 2019/1937. The EU Directive 1937 / 2019 (as is the Romanian bill) establishes a series of measures designed to protect those who draw attention to irregularities encountered in a company or its illegal practices. The aggravated form stipulated by Law no.78/2000, where the sanctioning limits are raised by a third, is applicable to the following public officials (clerks): a person who exercises a public dignity function; a judge or a prosecutor; a person within criminal investigation bodies or a person who has the competence to sanction for contraventions; a member of an arbitration court.

Thus, all the political parties have the obligation to publish in the Official Gazette of Romania the list of natural and legal persons who made donations in the previous fiscal year and whose cumulative value exceeds 10 minimum gross basic salaries per country, the list of individuals and legal entities granted loans in excess of 100 gross minimum basic salaries per country, as well as the total amount of confidential donations, respectively the total amount of loans with a value of less than 100 minimum basic salaries per country received, until April 30 of the following year. Romania Insider: Romanian Anti-Fraud Chief, State Secretary Resign amid Tax Evasion and Corruption Probe, 21 October 2016. Opaque bureaucratic procedures related to environmental approvals are one of the major problems for foreign investors in Romania (ICS2016). You also have the option to opt-out of these cookies. 2015). A Bucharest Court on Monday handed down suspended jail sentences to the two former heads of the Police Academy who had instructed a subordinate to threaten a journalist who was investigating plagiarism at the institution. However, the person who offers or gives bribe and denounces the action to the criminal investigation bodies prior to their acknowledgement of the facts will not be punished. Reuters reported that they were yelling Resignation! in front of government buildings. Romanian President Klaus Iohannis criticized the heavy-handed police response, calling it a brutal intervention, strongly disproportionate to the actions of the majority of people.. Bribes and irregular payments are often exchanged in return for obtaining favorablecourtdecisions (GCR 2015-2016). Romania Insider.com: Former Minister, local businessmen plead guilty in Microsoft licenses case, describe corruption ring, 13 October 2015. Romania is a signatory to the United Nations Convention Against Corruption (UNCAC), the Council of Europes Civil and Criminal Law Conventions against Corruption, and the Group of States Against Corruption (GRECO). The general rules for criminal defence are applicable, both from a procedural perspective (e.g.

More explicit trainings should be performed at the level of the legal entities in order for all the employees to better understand the risks of illegal actions (personally for them, but also for the company). These cookies will be stored in your browser only with your consent. There are some preliminary signs of improvement. facts. Stop all your ongoing activities if you dont want that a calvary [crucifiction] starts, it went on.

The recent criminal investigations are focusing on the crimes involving the production, import and distribution of medical masks and other devices by different companies. The most important key figures provide you with a compact summary of the topic of "Corruption in Romania" and take you straight to the corresponding statistics. We use cookies to optimize our website and our service. The advisor of Bucharest mayor is retained in connection with the case (EurActiv.com, Sept. 2015). data than referenced in the text. Are you interested in testing our corporate solutions? However this ensures that macro-crime is better prevented, while small incidents (small bribes) are still seen as tolerable at a general perception level, even if as illegal, indifferent of amounts of gifts or presents. Moreover, companies find the clearanceprocess insufficiently efficient (GETR 2016). Lastly, as mentioned earlier, there are certain incipient legal initiatives to adopt and implement the Whistleblowing Directive no. The information and opinions within this website are for information purposes only. As in the last years, it is still the general impression that many high-level corruption case files were created for political reasons and had the purpose to eliminate key politicians from the public service at important moments, such as right before elections or in key political moments, with the sole purpose to take-out a person from the elections race or from the political life. Attempts to enforce contracts take slightly longer and are slightly more costly than the European regional average (DB 2017). The current National Anticorruption Strategy foresees the voluntary involvement of a significant part of public administration, including the local public administration and state enterprises, as well as law enforcement agencies, the Public Ministry, the courts and civil organisations (NGOs). Yes, political contributions are strictly regulated through the provisions of Law no.334/2006 regarding the financing of the activity of political parties and of elections campaigns. The threatening message was sent via SMS in April 2019 to the cellphone of Emilia Seran, a journalist with Romanias publication PressOne who had exposed the deans plagiarism of more than two-thirds of his thesis as well as other similar cases among the institutions professors. Payments of firm taxes have been reduced from quarterly to twice a year (DB 2015), limiting the number of direct encounters that companies have with tax officials.

Once the law is adopted, especially companies with more than 50 employees will be targeted by a new set of obligations. . as well as other similar cases among the institutions professors. provocation to the crime by a state agent, illegality of the evidentiary procedures, etc.) The difference between the two categories exists only when it comes to limits of the sanctions. In addition to protesters, some police officers were also injured when protesters retaliated, with some reportedly throwing bottles. The standard incrimination of receiving bribe is sanctioned from 3 to 10 years of imprisonment, while offering bribe is sanctioned from 2 to 7 years of imprisonment. We'll assume you're ok with this, but you can opt-out if you wish. Notwithstanding, corruption scandals within the courts have eroded the institutions integrity (NiT 2015). Passive bribery (receiving bribe) is defined in art.289 RCC as the action of the public servant who, directly or indirectly, for themselves or on behalf of others, solicits or receives money or other undue benefits or accepts a promise of money or benefits, in exchange for performing, not performing, accelerating or delaying the performance of an action which falls under purview of their professional duties or with respect to the performance of an action contrary to their professional duties, constitutes a violation of the law and shall be punishable by no less than 3 and no more than 10 years of imprisonment and the ban from exercising the right to hold a public office or to exercise the profession or the activity in relation to which they committed the violation. Courtslack experience and expertise with regard tothe functioning of a market economy, international business methods, intellectual property rights, andthe application of Romanian commercial and competition laws (ICS2016). The former head of Romanias National Anti-corruption Directorate, Laura Kovesi, was indicted late last week on charges of abuse of office and taking bribes, and has been forbidden from speaking to the media or traveling abroad. However, the public consultationfor the MCPDCs 2016 budget largely disregardedthe legal time frameand rules for consultation, triggering discontent among civil society (NiT 2016). The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. An accomplice ofMustata, clerk MarianaCurea, received four years and four months (TheRomania Journal, Apr. It was believed to be the largest demonstration in decades. A corruption case in the mining industry sparked mass protests all over Romania when the Romanian mining company Rosia Montana Gold Corporation (RMGC), majority owned by Canadas Gabriel Resources, employed fraudulent means such as bribery, fraud and procedural rule-bending to obtain approval for the gold and silver mining project in Alba County in the Apuseni Mountains (ERCAS, Dec. 2013).