Prime Minister Ilie Bolojan triggered a major scandal on Tuesday after demanding the dismissal of the EximBank director and announcing the submission of an official complaint to the General Prosecutor’s Office.
Everything started from the rental of the Kiseleff Palace by the state bank, in a transaction where they are paying double the estimated value by experts, with the difference going to an intermediary company called Spirmina Corporation.
Prime Minister: “If you are not outraged when you see these things, it means you are not the right person for that position”
Ilie Bolojan stated on Digi24 that EximBank pays a monthly rent of 120,000 euros for the building, even though expert evaluations indicated a maximum value of 60,000 euros. According to him, the bank did not attempt any direct negotiation with RA-APPS, the property owner, preferring to sign with a private company that intermediates the contract and collects the difference.
“This situation outraged me,” said Ilie Bolojan.
“With a salary of 20,000 euros, didn’t you ask why you are paying more to an intermediary? Didn’t you at least write a request to RA-APPS?” he continued, accusing the bank’s management of lack of reaction and responsibility.
He announced that the Ministry of Finance has been mandated to start the procedures for replacing the EximBank management and that the General Prosecutor’s Office has been notified for possible criminal acts.
According to the prime minister, Spirmina Corporation pays RA-APPS an amount less than what it collects from EximBank, which turns this scheme into a loss-making business for the state. No authority seems to have intervened so far, even though the contract has been ongoing for years.
RA-APPS, however, claims that the rental is legal and longstanding. In a statement sent to the press, the agency specifies that the Kiseleff Palace has been rented since 1996, based on a contract that has always been extended with the approval of the General Secretariat of the Government.
The agency asserts that evaluations were conducted by ANEVAR authorized experts and that the transaction has brought “a profit of over 50% to the agency’s budget”.
The Prime Minister was not satisfied with the explanations given by the agency and emphasized the responsibility of public institutions in managing state funds. Bolojan brought up the general context in which the state asks for sacrifices from citizens, stating that such practices “are an insult to Romanians”.
In the interview given to Digi24, the prime minister highlighted the lack of economic logic in this rental scheme:
“EximBank, a state bank, did not even attempt a direct offer to RA-APPS, but accepted to pay a double amount to an intermediary.”
In his opinion, such transactions compromise people’s trust in public institutions and create the impression that no one is held accountable for the decisions made.
The complaint to the General Prosecutor’s Office aims to verify the legality of the contract and the decisions that led to the acceptance of this arrangement. The Ministry of Finance has been mandated to find a new management for EximBank, after the current management has been harshly criticized for passivity.
“It is unacceptable for a bank with majority state capital to accept such practices without even raising a question. Where is the concern for public money?”
, Bolojan added.
He believes that the silence of EximBank’s management is suspicious and that the lack of an official reaction has allowed the scheme to continue unimpeded.
RA-APPS continues to assert that everything is in order, emphasizing the legal nature of the contract and that the applicable legislation has been respected. According to the statement, the property has generated substantial profit and that evaluations were compliant, without any deviation.
The scandal brings back into focus the issue of intermediaries who collect public money in a non-transparent manner. Spirmina Corporation, the company that signed the rental contract with EximBank, has not yet issued a public statement regarding the accusations.
It is unclear who the beneficiaries of this contract are, but the prime minister demands explanations and the involvement of the judiciary.
It remains to be seen whether this action will lead only to point changes or will trigger a wider review of how public institution contracts are concluded. The Prime Minister seems determined to continue pressure on all those who do not act in the interest of the state.
