Romania’s Anticorruption Department Re-Opens Controversial Duty-Free File

Romania’s Anticorruption Department (DNA) re-opened the file concerning duty-free shops at Bucharest’s international airport “Henri Coanda” Otopeni after it rejected the start of prosecution in August 2006.

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DNA looked into the case back in 2002, but it decided not to start the prosecution on lack of evidence.

After Great Britain-based Eastern Duty Free (EDF) (the company administrating the duty-free shops at the aforementioned airport –e.n.) appealed the decision, DNA also maintained its decision in 2006 based on the same rationale.

The EDF jurists submitted an audio recording to DNA to be used as new evidence in the case and once again requested the file be re-opened.

U.S. publication Financial Times writes the EDF sued the Romanian state and required damages of $100 million in a high-level graft case involving Romania’s former prime minister Adrian Nastase, duty-free lease contracts signed with an airport company and an airliner, as well as an audio recording revealing the solicitation of $2.5 million worth of bribe.

The case is to be tried this year at the Washington International Court.

EDF, which also operates in Laos, Vietnam and Philippine, took legal action at the World Bank's International Centre for the Settlement of Investment Disputes (ICSID) and urges the payment of damages worth $100 million for the loss of two duty-free sales contracts concluded with Romania’s flag carrier Tarom and the country’s abovementioned airport.

EDF said it was contacted by Nastase’s business partners during 2001-2002 who requested bribe worth $2.5 million to keep the contracts EDF won in 1992 and 1996, stressing it was forced to discard the respective contracts after it refused to pay the bribe.

Financial Times says the government led by Nastase during 2001-2004 approved an emergency ordinance that banned duty-free retail operations and the EDF contracts were subsequently assigned to certain Romanian companies.

Financial Times also says the audio recording will be presented as evidence in court.

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