Friday, February 29, 2008
Romania's budget deficit at 2.6 pct/GDP in 2007
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Thursday, February 28, 2008
EU says Romania undersold car plant to Ford Motor Co.
The Associated Press
BRUSSELS, Belgium: The European Commission said Wednesday that the Romanian government undersold a car plant to Ford Motor Co. last year and should reclaim millions in lost revenue from the state-owned company that sold it.
EU regulators ruled that Romania imposed conditions on the privatization of the Craiova plant that led to a lower sales price. It required the new buyer make at least 200,000 cars within the first four years of the sale and keep on all 3,900 workers.
U.S.-based Ford was the only bidder for the plant last September, paying 57 million (US$77.9 million) for a 72.4 percent stake in the state-owned Automobile Craiova and vowing to invest another 675 million (US$923 million) to upgrade and expand car production.
The EU executive said the stake was actually worth 84 million (US$125 million) and the Romanian state lost 27 million (US$40 million).
Regulators ordered the government to demand Automobile Craiova pay the state the lost revenue from the sale.
The Romanian government took over the debt-laden factory in 2006 after the previous owner, South Korea's Daewoo Motor Co., went bankrupt in 2000.
EU rules prevent governments from favoring one company over rivals by showering it with public money.
General Motors and JC Russian had signaled interest in bidding for Craiova earlier this year as Romania's low-wage workers and membership of the European Union make it an attractive location for making cars.
The plant is currently not turning out any cars and now only sells spare parts.
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OTP Bank Romania to slow expansion
28 Feb 2008
bbj.hu
He said that the bank stopped signing contracts for uncollateralized personal loans at 14 of branches in November, though it will gradually reintroduce the loans from March. He attributed part of the reason for the high rate of problem loans at the bank to under-qualified staff.
Diósi said more than a thousand bank branches opened in Romania in the past three years, creating a shortage of qualified labor. Wages rose 25%, well above the 7% inflation rate.
OBR had 109 branches at the end of 2008, still far from the 170-200 branches that would give it optimal coverage, Diósi said. The unit will, however, focus rather on the better utilization of the existing network and on sales through agents, he said.
OBR will focus on mortgage loans and products new to the Romanian market that have already been tried and tested in Hungary.
OBR racked up losses of Ft 3.5 billion in 2007, still an 18.3% improvement over losses in 2006, OTP Bank said in its preliminary report. (MTI-Econews)
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Romania to hold Young Atlanticist Summit in parallel with NATO summit
BUCHAREST, Feb. 27 (Xinhua) -- The Romanian Intelligence Service (SRI) and the U.S. Atlantic Council are to stage the Young Atlanticist Summit in parallel with the upcoming NATO summit on April 2-4 in Bucharest.
The program is aimed at reducing skepticism over the U.S.'s and NATO's capacity to tackle global security issues, organizers told a press conference Wednesday.
"We know that surveys show Europe's skepticism over U.S. capacity to solve the global issues and we know that young Americans are skeptical, too," said Frederick Kempe, chairman of the Atlantic Council of the United States.
"A 2007 survey shows that confidence in NATO grew slowly and we should be worried, as NATO's success is based on U.S.- Europe common activity. And this concerns all matters, from global warming to the fight against terrorism. This is the reason for which we want to involve the young generation in NATO's activities," the chairman added.
Attending the conference, SRI director George Maior said that the summit is being held under the patronage of NATO and its Secretary-General Jaap de Hoop Scheffer, adding that the event is aimed at training the future NATO leaders, analysts and experts.
"I personally believe that the youth summit has a special importance, both as an event for civil society as well as a being training forum for our future experts in international security," said Maior.
The event will be attended by 120 future leaders who will debate issues on the NATO summit agenda, future transatlantic relations and NATO priorities and missions.
The young participants will also hold talks with NATO national leaders and listen to experts' opinions.
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Romania plans to float Romtelecom minority stake
BUCHAREST, Feb 27 (Reuters) - Romania plans to float at least 10 percent of leading landline telephone operator Romtelecom, majority owned by Greece's OTE (OTEr.AT: Quote, Profile, Research), this year, the government said on Wednesday.
The float was scheduled for 2006, but has been repeatedly delayed after recent selloffs came under the spotlight on suspicion of commercial espionage.
"We wish that this year, this fall, to successfully finalise the listing procedure on the bourse," Telecoms Minister Karoly Borbely said in a statement.
The cabinet said the procedure will take around eight months to complete and that the planned stake on float could be raised.
The government, which holds a 46 percent stake in the company, said the procedure to select a consultant to advise on the sale will be relaunched. But it did not offer a timing.
A previous consultancy contract with Credit Suisse has expired, officials said. (Reporting by Radu Marinas; Editing by Richard Hubbard)
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Romania govt suspends drugmaker Antibiotice selloff
BUCHAREST, Feb 27 (Reuters) - Romania's government on Wednesday decided to suspend the sale of state-owned drugmaker Antibiotice Iasi ATBE.BX, which was scheduled for March 18.
The decision comes after the workers' union of Antibiotice won a court annulment of the law that envisaged an open bidding privatisation method for the firm.
However, an official source from privatisation agency AVAS, which is handling the sale, told Reuters the suspension is temporary and that the company will be back for sale "as soon as possible", likely still in the first quarter.
Late last year AVAS kicked off procedures to sell a 53 percent stake in Antibiotice, its flagship asset, through open bidding, at a starting price of roughly 136 million euros ($204.5 million).
Trade unionists criticised the method saying it was too hurried and put the firm at risk of being bought by an investor not keen on maintaining its core pharmaceutical activity.
AVAS had previously planned to sell the firm to a strategic investor through a process that involved binding bids and included negotiations with short-listed bidders. But it said such a method could lead to granting potential state aid to the company and prompt lengthy European Commission probes.
"Following the government's decision, and also taking into account the social and economic importance of the drugmaker,... AVAS will revoke the privatisation offer of Antibiotice Iasi in the shortest time," the government said in a statement.
The AVAS official said the agency will still use open bidding to privatise the firm.
The agency has said the method is in line with European Union norms as it eliminates any doubt concerning state aid.
European Union newcomer Romania has so far received 53 non-binding letters of interest for Antibiotice, which has ambitious growth plans, including the addition of new products to its portfolio. (Reporting by Luiza Ilie; Editing by Richard Hubbard)
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Wednesday, February 27, 2008
Romanian company to develop real estate projects with Chinese partner
BUCHAREST, Feb. 26 (Xinhua) -- Romania's Niro Group is to work on several real estate projects in Bucharest and other big cities in the country with China's Beijing Urban Construction Group Co., Ltd, local media reported Tuesday.
In September, the company is to start building a block of flats and a hotel in Bucharest's Free Press Square, on an area of 3,350 square meters in cooperation with the Beijing partner, said Ecaterina Vanea, CEO of Niro Investment, the main company of the group.
Niro will also kick off the construction of a China Town in northeastern Bucharest this year. The town will be composed of three distinct areas, namely Dragonul Rosu, China Business Center and China Towers Residential.
China Business Center will have a 16-storey office building, conference halls and an exhibition area of 100,000 square meters.
China Towers Residential project features 12 blocks with over 600 flats, which will be the home of the biggest Chinese community in Southeast Europe.
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EU orders Romania to recover 27 mln eur state aid from Automobile Craiova
BRUSSELS, Feb. 27, 2008 (Thomson Financial delivered by Newstex) -- The European Commission said that following its in-depth investigation into the privatisation of Automobile Craiova (formerly Daewoo Romania), the Romanian government must recover 27 mln eur.
Competition Commissioner Neelie Kroes said: 'Imposing conditions on a privatisation normally lowers the sales price, so that the state loses revenue and the privatised activity gains a selective advantage'.
The Romanian authorities attached specific conditions to the privatisation, in particular the achievement of a minimum production level of 200,000 cars in the fourth year after the privatisation, the continuation of the current activity for four years and the maintenance of all former employees of Automobile Craiova and Daewoo Romania.
Ford Motor Co (NYSE:F PRS) (NYSE:F PRA) (NYSE:F) was the only company willing to make an offer under these conditions. It offered a purchase price of 57 mln eur and won the tender.
The Commission's investigation revealed that the conditions had lowered the sales price. The market value of Romania's 72.4 pct stake in the core industrial assets bought by Ford was estimated at 84 mln eur, the commission said.
The granting of the aid did not comply with any of the common interest objectives for which aid can be authorised in the EU. The Commission has therefore ordered a full recovery of the aid.
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Suez sees Romanian nuclear tender results soon
Reuters - Wednesday, February 27
PARIS, Feb 26 - French utility Suez said on Tuesday it expected to hear within "the next few weeks or the next few months" whether Romania will pick the French firm to build a nuclear power plant in the Balkan country.
A number of countries in central, eastern and south eastern Europe plan to build new nuclear power reactors or extend the life of existing ones to meet growing domestic demand and replace ageing power capacity.
Their plans mirror a worldwide nuclear boom as part of the solution to meet rising energy needs and combat climate change.
"We have submitted bids...and in Romania, the process is quite well advanced," Chief Executive Officer Gerard Mestrallet told journalists after unveiling the firm's 2007 results.
"We expect to hear more in the next few weeks or next few months," he said
Romania, whose two nuclear reactors at the Cernavoda plant accounted for 13 percent of all power in 2007, plans to build two more reactors, each with 706 megawatt power capacity at the same site by 2015. It plans to build a second plant later.
Candidates to build the two new reactors include Electrabel, Enel , Spain's Iberdrola , CEZ, a Romanian unit of Arcelor Mittal and RWE . The investment is estimated at around 2.2 billion euros.
Mestrallet said that the process was slightly less advanced in Bulgaria. "But we are still working at it," he said.
Bulgaria, where nuclear energy supplies 43 percent of all power, plans a new 2,000 MW nuclear power plant at the Danube river town of Belene.
It has contracted Russia's Atomstroyexport, along with France's Areva and Germany's Siemens , to build the plant in a 4.0 billion-euro deal, with the first reactor expected to come online in late-2013.
Sofia is yet to pick a strategic investor for 49 percent of the plant from Italy's Enel , Germany's E.ON and RWE, Czech CEZ and Belgium's Electrabel, owned by French utility Suez.
Suez added it was keeping a close eye on Britain, which last month gave a go-ahead to replace its ageing atomic reactors.
Mestrallet reiterated its plan to develop nuclear power plants in the rest of Europe but said a decision would not be taken before 2009, after the merger with Gaz de France .
The company said it was key for the group to keep the same share of nuclear power in its energy mix in the long term but that it would inevitably decline in the next few years.
"We will develop them in all countries in partnerships, or alone, in countries where we are welcome," Suez head of operations, Jean-Pierre Hansen, told an analyst meeting earlier on Tuesday.
He cited as potential target markets Brazil, the United States, India, China and South Africa.
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Official: Romania might miss adoption of euro in 2014
BUCHAREST, Feb. 26 (Xinhua) -- Romania might miss the adoption of the euro in 2014, if inflation remains at a high level, Mugur Isarescu, governor of Romania's National Bank, said Tuesday.
"I'm afraid the adoption of the euro in 2014 might be missed if inflation does not keep at sustainable levels," said Isarescu at a conference on "Romania, an attractive location for investments, or economic overheating?"
He said that Romania, during 2008-2009, should take tough measures to curb inflation.
"If we do not manage to bring it down, it means the anticipations have no grounds any longer, they will be set at a higher level and we will need another two-three years to take the inflation from 8 percent to 4 percent and then to 2 percent," he said.
He said the strength of the national leu currency last year had had an impact on inflation, with the its appreciation having been over-rated amid a high current account deficit.
The inflation rate stood at 0.9 percent this January, while the figure for Jan. 2008-Jan. 2007 climbed to 7.26 percent, up from 6.57 percent last December, according to figures published by the National Institute of Statistics Tuesday.
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Romania reiterates commitment to taking part in Iraq reconstruction
BUCHAREST, Feb. 26 (Xinhua) -- President Traian Basescu reiterated on Tuesday the Romania's commitment to taking part in Iraq's reconstruction in a wide range of areas including the political, economic and defense sectors.
The Romanian leader made the remarks when meeting Iraqi Parliament Speaker Mahmood Dawood Salam Al-Mashhadany, who is paying a visit to Bucharest, according to a release of the Presidential Administration.
The two officials discussed the domestic developments in Iraq and the Romanian contribution to that country's economic reconstruction.
Basescu praised the Iraqi authorities' efforts to develop partnerships with the international community, like the International Compact for Iraq, which are meant to contribute to the country's political, economic and social development, the release said.
Furthermore, the Romanian president hailed a decision made by Iraq's neighboring states to get actively involved in the process of turning Iraq into a democratic state as well as their contribution to the achievement of the Iraqi national unity.
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Once militant, Romania's miners seek investment
LAST CALL FOR CASH
Mining, once a thriving industry employing almost half a million people including jobs above ground, has in the period 1995-2000 cost Romania roughly $6 billion, mostly in subsidies.
In September 1991, thousands of miners stormed into Bucharest and invaded parliament, setting fire to government buildings and forcing reformist Prime Minister Petre Roman to resign. Former President Ion Iliescu denied engineering the protests to tighten his grip on power.
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Corruption Probes Soar In Romania
BalkanInsight.com
26 February 2008 Bucharest _ Romania's Anti-corruption Department, DNA, investigated and prosecuted 60% more high public officials in 2007 than the previous year, a DNA report said Tuesday.
DNA prosecutors were investigating more than 3,300 cases in 2007, closing 2,070 of them. So 415 persons were indicted for committing 958 types of offences.
The most common corruption charge was bribery in 125 cases, but also counterfeiting, in 121 probes.
In 2006, seven parliamentary deputies, one minister, two state secretaries, two presidents of local councils, two mayors and a DNA prosecutor were investigated and indicted on corruption charges, according to a report published by Transparency International Romania in May 2007. Read more: http://www.birn.eu.com/en/84/15/3068/
Surveys show many Romanians link most of their nation’s problems, from pot-holed streets to a lack of foreign investment, to corruption, nepotism and red tape.
The reform drive has lost steam since entry into the European Union in January 2007, which was followed by deepening feuds among the major parties and a split in the ruling centrist coalition in spring 2007.
According to Transparency International’s corruption perception index in its May 2007 report, Romania remains the most corrupt country in the EU, despite some progress made since 2004.
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Romania can be mediator in Kosovo dispute, says minister
Eubusiness.com
(ZAGREB) - Romania's foreign minister said Tuesday that his country could help mend ties between Serbia and the European Union and NATO which have been strained by Kosovo's declaration of independence.
"Romania is a member of both the European Union and NATO and could transmit messages addressed by Serbia to the two organisations as well as the member countries," Romanian Foreign Minister Adrian Cioroianu told AFP in Zagreb.
"At the same time, we can present to the Serbian party concerns and expectations of our Euro-Atlantic partners regarding Serbia," Cioroianu said during a tour of the region.
Belgrade's relations have deteriorated with the United States and leading members of the European Union over their support for Kosovo, which unilaterally declared independence from Serbia on February 17.
So far, big EU players such as Britain, France, Germany and Italy have recognised Kosovo but Romania has refused to do so.
"We are not the only friend of Serbia within the EU, and Belgrade has no reason to feel abandoned," Cioroianu said.
EU "member countries share a common view regarding Serbia's European future," the minister said, expressing hope that "Belgrade will soon receive clear signals for a credible European perspective."
Earlier this year, the European Union offered Serbia a deal on political dialogue, free trade, visa relaxation and educational cooperation.
However, the process of the country's approach to the EU was frozen after attacks on some of its members' embassies in Belgrade during a demonstration on Thursday last week.
Serbia is a member of the North Atlantic Treaty Organisation's (NATO) Partnership for Peace programme, seen as the first step towards membership in the military alliance.
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OMV disappoints as charges burden EBIT
By Paul Bolding
VIENNA, Feb 26 (Reuters) - Austrian oil and gas group OMV (OMVV.VI: Quote, Profile, Research) reported higher operating earnings in the fourth quarter but the shares slipped as analysts focused on unexpected charges.
Group earnings before interest and tax (EBIT) were 492 million euros ($729.1 million) in the quarter to December, up 25 percent, but well under the 665 million euros average expected by analysts.
The number included special charges for personnel costs, unscheduled depreciation, impairments and provisions for litigation in Romania, the company said on Tuesday. OMV bought 51 percent of Romania's Petrom in 2004 but some Romanian politicians want the sale cancelled.
EBIT rose to 688 million euros after stripping out the one-off items. Analysts on average had forecast a 14 percent rise to 642 million euros. Petrom's clean EBIT contributed 237 million euros.
The shares were down 1.5 percent at 48.34 euros at 1221 GMT while the DJ Stoxx European oil and gas index was up 0.2 percent.
For 2008, OMV expected another set of robust earnings and higher production volumes in Romania.
"We expect the main market drivers (crude price, refining margins and the USD/EUR exchange rate) to remain highly volatile throughout 2008," said OMV.
Analysts at Sal Oppenheim said the result was slightly below expectations but reiterated their "buy" rating. Exploration and production was in line with forecasts, they said. "Here, OMV benefited from high oil prices and is constantly improving its efficiency."
Merrill Lynch analysts also said the result disappointed but they were positive on the shares on medium-term fundamentals and valuation.
"New investment in the highly profitable E&P (exploration and production) business in Petrom will start to bear fruit in terms of volumes and costs, while the downstream Petrom business looks to be on a positive trend towards stemming systemic losses," they said.
SHARES SLIP
OMV shares have fallen more than 11 percent since the start of the year, in line with the decline in Austria's blue-chip index ATX .
However, they have underperformed the DJ Stoxx European oil and gas index by about 6 percent.
The oil and gas firm saw refining margins in 2008 slightly below last year's level and the U.S. dollar and euro exchange rates remaining at year-end 2007 levels.
The group's oil and gas production was 2 percent below the fourth quarter of 2006 at 323,000 barrels of oil equivalent per day (boed), mainly due to lower volumes in Romania and the UK. These were not fully compensated by higher volumes in New Zealand, Yemen and Austria, OMV said.
Chief executive Wolfgang Ruttenstorfer said in the results statement the company would pursue its plan to take over Hungarian peer MOL MOLB.BU.
MOL and OMV have been in a stand-off since the summer of 2007, when OMV first indicated its takeover plans. The Austrian company holds 20.2 percent of MOL and has proposed a bid valuing its target at $20 billion.
MOL has repeatedly rejected the approach and has spent almost $2.8 billion on share buybacks trying to frustrate it.
OMV also said it would propose resolutions at the MOL annual shareholders' meeting in April that would end an arrangement of "quasi-treasury shares" in MOL held by BNP Paribas (BNPP.PA: Quote, Profile, Research), OTP Bank OTPB.BU, Czech energy company CEZ (CEZPsp.PR: Quote, Profile, Research) and others.
OMV's bid is subject to MOL removing a 10 percent voting rights cap and on cancellation or neutralisation of a 40 percent stake in MOL controlled by its board and friendly institutions.
OMV said its reserve replacement rate -- the extent to which production is matched by new finds -- was 46 percent in 2007, following 406 percent in 2006 after the inclusion of Petrom. (Additional reporting by Karin Strohecker; Editing by Erica Billingham)
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Tuesday, February 26, 2008
Romania's 2014 euro entry goal may be at risk-c.bank
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Real estate company sues engineer in U.S. for millions in Romania building case
BUCHAREST, Romania (AP) - A commercial real estate company has filed a defamation suit against a U.S. engineer, saying his false statements led to the suspension of a 20-story office building project in Romania's capital, an attorney said Monday.
Emanuel Necula, an engineer employed on the Millennium Building Development project until 2005, «used statements he knew to be false» to the media, Romania's parliament and EU officials, said attorney Lanny J. Davis, who is representing Millennium, a U.S.-British company.
Necula did not immediately return a message seeking comment left on his answering machine at his office in New York.
Necula is being sued in a U.S. District Court in New York for Euros 10-20 million (US$14.85-29.7 million) for «malicious defamation,» the sum representing the cost of suspending the project, which was ordered by a Romanian court in July.
A Romanian court temporarily withdrew the building authorization on technical grounds.
After he left Millennium in May 2005, Necula wrote to government and EU officials and lobbied Romanian media, alleging that the building in downtown Bucharest was unsafe, according to letters and articles provided by Davis.
He had wanted to make the building from an all-steel structure, but it was being built from a mixture of steel and concrete, according to the articles and letters.
Millennium officials said they had obtained some 20 permits over several years to ensure that the project went ahead.
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AP: Rome church refurbishes hearse for shipment to Romania
ROME, Ga.
In Romania, bodies are said to be taken to gravesites in trucks, altered vehicles, wagons pulled by horses or by family members on foot.A Rome church is planning to send a refurbished hearse to Romania, which church officials say does not currently have any. The 1987 vehicle, filled with medical supplies, will be carried to New York on Friday and shipped overseas to Germany on a 21-day voyage.
The hearse, which was repainted, had its engine and transmission replaced and was thoroughly cleaned inside, is expected to arrive by the end of the month in Lupeni, Romania.
It wasn't until last year that funeral homes began opening and serving the country, said Associate Pastor Daniel Apetroaie of the DaySpring Assembly of God Church. Services were held in family members' homes or the home of the deceased.
"The Communist regime kept (Romanians) closed from the West," he said.
The hearse, donated by Henderson & Sons Funeral Home, will be taken to the Voice of Pentecost, a funeral home and assisted living home operated by Apetroaie's father, Villy Wilson of Romania. Rome residents donated the medical supplies for the senior living home.
The funeral home will open when the new hearse arrives.
"Until recently, the Orthodox were in control of the graveside services," said Rev. Robert Anderson, who added that Wilson "wanted the Pentecostal to have funeral homes, too. We saw a need and wanted to get this together."
Although the hearse was ready in November, it hadn't been shipped yet because the church did not want to risk it being damaged in snow storms in Romania that lasted between November and February and dumped about six feet of snow in the area.
Church officials anticipate sending another hearse to his home country in the future.
"We're hoping this will fuel some fires for getting more hearses to Romania," Anderson said.
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'No Secret CIA Prisons' In Romania
BalkanInsight.com
25 February 2008 Bucharest _ Romanian officials have again strenuously denied fresh accusations that the country hosted secret CIA prisons on its soil.
"We found no clear evidence about Romanian involvement in CIA flights. It's also in our interests to try to see what happened," Norica Nicolai, former chief of a Parliament committee which investigated
the country's alleged involvement in 'extraordinary rendition' said Monday.
'Extraordinary rendition' is the term used by United States intelligence agencies, such as the Central Intelligence Agency, CIA, which refers to the transport of terror suspects around the world for interrogation.
In these third countries, terror suspects have no legal protection or rights under American law, and Romania has been implicated in a probe which claims the country hosted a prison where suspects were detained and interrogated.
On Sunday, President Traian Basescu denied allegations about the alleged transfer of prisoners at one Romanian airbase.
His comments followed a report by the Associated Press news agency which suggested that on five occasions between 2004-2005, large, mysterious parcels were exchanged which, according to a Romanian official who says he witnessed it, looked like bundled-up terror suspects.
Furthermore on Friday the European Commission, EC, said Poland and Romania have been dodging requests to clarify their possible role in the extraordinary rendition programme.
"The reply so far received from Romania was not considered complete by EC Vice President Franco Frattini. So, we are currently awaiting replies to our reminders," an European official said late last week.
The European Union has previously indicated that if reports of secret CIA prisons in Europe were true, states involved would face serious consequences including the possible suspension of their EU voting rights.
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Monday, February 25, 2008
Police spies still haunt Romania
| By Delia Radu BBC Romanian Service, Bucharest |
The feared Securitate came to symbolise the dictatorship of Nicolae Ceausescu, whose regime collapsed amid bloody street fighting in December 1989.
The National Council for the Study of the Securitate Archives (CNSAS) was set up in 1999.
For several years, it struggled against a reluctant post-communist Romanian Intelligence Service, custodian of the two million surveillance files compiled by the Securitate.
Eventually the council got hold of what was described as "kilometres of files". Its main duties were to help people find and photocopy their personal records and to check the backgrounds of high-profile candidates for important public positions.
Some criticised the council for being slow, disorganised or politically motivated, but most agreed that Romanians needed to know and understand their past.
Several hundred cases of collaboration were publicised - and sometimes the CNSAS information leaked out.
Search for truth
Romania - a new member of the EU - is now awaiting a new law for the investigation of secret files.
| | Many people across Romania tried to get in touch with me, only to find themselves grabbed by the Securitate Doina Cornea |
"We need the truth about our own lives, we need to break the chain of secrets and lies of the past if we want to be free," says Mrs Cornea.
As one of the few opponents of the Ceausescu regime in the 1980s, this diminutive woman found herself at the centre of a massive surveillance operation.
Her Securitate file consists of 30 volumes, amounting to 7,000 pages. She has only begun to look through this mass of papers.
How does it feel to read all those surveillance notes now?
"First of all, I found it hard to believe how important I was to them," she says.
"Around 100 Securitate employees, some of them high-ranking officials, were involved in the operation.
"There were agents monitoring my moves, my home, family and neighbours, tapping and transcribing everyone's conversations.
"As my calls to fight the oppression were broadcast on Radio Free Europe and followed by my telephone number and address, many people across Romania tried to get in touch with me, only to find themselves grabbed by the Securitate. It was very moving to find these people's letters, complete with envelopes, in one of the files."
Witch-hunt fears
Mrs Cornea says the CNSAS "verdicts" were meant to have moral and symbolic value - they were not the equivalent of judicial verdicts.
She deplores the Constitutional Court's ban and its argument that the council had unlawfully acquired judicial powers.
| | We can't make culpable whole social or professional categories of people Ilie Merce |
But Ilie Merce, a member of the legislature and former Securitate agent, has a different view.
"The CNSAS had become an instrument for personal or political vendettas, or trafficking of files, and a new-style political police," he argues.
"The old law proved divisive and sometimes libellous. Yes, the files of officials should continue to be checked, but not made public. Parliament should get the relevant information, or the government, if a particular file seems to involve a cabinet member.
"Whenever an abuse was committed, the victims should seek justice according to the law - otherwise there will be chaos. Whoever did anything wrong should pay for their own mistakes.
The CNSAS has been pursuing cases file-by-file, not collectively punishing those who served in the communist regime.
Its "verdicts" can reveal whether senior officials have lied about their communist past - and can lead to prosecutions.
The right to know
Mr Merce was the Securitate chief in Buzau County, central Romania, when the communist regime collapsed in 1989.
Now an MP for the nationalist Greater Romania Party, he says he is proud to have worked for Romanian intelligence for 25 years, before retiring in 1996.
"In everything I did, I observed the law. But to this day I believe some sensitive information should remain classified. I won't reveal who my informers or the people I used to work with were - that would be very demeaning and unprofessional."
He welcomes the Constitutional Court ruling and considers the CNSAS "dead and buried". So does Romania need an institution to probe the communist secret files at all?
"I won't say such an institution shouldn't exist, mainly to grant people access to their personal files if they were under surveillance and if they want to see them. And then people should decide what to do next, seek justice if they were mistreated.
"But the management of this institution shouldn't issue verdicts, publicise their findings, or reveal them brazenly on TV in the middle of talk shows, as they sometimes did, because such acts can have serious consequences."
Former political prisoners in Romania get only a small allowance - not enough to compensate for the loss of a job or a house. The pursuit of justice for Ceausescu-era crimes remains difficult.
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'No Secret CIA Prisons' In Romania
BalkanInsight.com
25 February 2008 Bucharest _ Romanian officials have again strenuously denied fresh accusations that the country hosted secret CIA prisons on its soil.
"We found no clear evidence about Romanian involvement in CIA flights. It's also in our interests to try to see what happened," Norica Nicolai, former chief of a Parliament committee which investigated
the country's alleged involvement in 'extraordinary rendition' said Monday.
'Extraordinary rendition' is the term used by United States intelligence agencies, such as the Central Intelligence Agency, CIA, which refers to the transport of terror suspects around the world for interrogation.
In these third countries, terror suspects have no legal protection or rights under American law, and Romania has been implicated in a probe which claims the country hosted a prison where suspects were detained and interrogated.
On Sunday, President Traian Basescu denied allegations about the alleged transfer of prisoners at one Romanian airbase.
"The airport was never used for CIA flights. All the United States' flight plans were revealed and, besides, Romanians had access to all buildings on the base," Basescu said.
His comments followed a report by the Associated Press news agency which suggested that on five occasions between 2004-2005, large, mysterious parcels were exchanged which, according to a Romanian official who says he witnessed it, looked like bundled-up terror suspects.
Furthermore on Friday the European Commission, EC, said Poland and Romania have been dodging requests to clarify their possible role in the extraordinary rendition programme.
"The reply so far received from Romania was not considered complete by EC Vice President Franco Frattini. So, we are currently awaiting replies to our reminders," an European official said late last week.
The European Union has previously indicated that if reports of secret CIA prisons in Europe were true, states involved would face serious consequences including the possible suspension of their EU voting rights.
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Labels: Foreign Policy
Sunday, February 24, 2008
Romania Base Suspected CIA Prisoner Site
By WILLIAM J. KOLE – 15 hours ago
MIHAIL KOGALNICEANU AIR BASE, Romania (AP) — It always happened at 1 a.m. In a secluded corner of this heavily guarded airfield, two snipers would creep across a rooftop and take their positions. Moments later, just below, a black minibus would arrive and wait.
Three times in 2004, and twice more in 2005, a jet landed and the black bus drove out to meet it. Large, mysterious parcels were exchanged that, according to a Romanian official who says he witnessed it, looked like bundled-up terror suspects.
The official, a high-ranking veteran with inside knowledge of operations at the base, said the planes then left for North Africa with their cargo and two CIA handlers aboard.
His descriptions, told on condition of anonymity to The Associated Press, add to suspicions surrounding Romania's involvement in "extraordinary rendition" — the beyond-the-law transfer of U.S. terror suspects from country to country by the CIA. Human rights advocates say renditions were the agency's way to outsource torture of prisoners to countries where it is permitted practice.
Romania's precise role is a little-reported part of the system that is being slowly revealed, often to the chagrin of U.S. allies. In an embarrassing reversal after years of denial, Britain admitted Thursday that its military outpost on the Indian Ocean island of Diego Garcia had twice been used as a refueling stop for the secret transport of terrorism suspects.
The European Commission on Friday accused Poland and Romania of dodging its requests to clarify their involvement. Both countries deny accusations of wrongdoing, including a report by Dick Marty, a Swiss official working for the Council of Europe, the continent's top human rights watchdog, who accused the CIA of running secret prisons in the two countries.
Prisoners typically were shackled and kept naked and in isolation, he alleged, in violation of the European Convention on Human Rights. Such treatment also would run contrary to Romania's own laws and its commitment to human rights, a key condition to the Balkan nation's 2007 accession to the European Union.
According to the Romanian official:
_ U.S. pilots routinely filed bogus flight plans — or none at all — and headed to undeclared destinations.
_ C-130 Hercules cargo planes and other U.S. military aircraft arriving from Iraq regularly parked in a restricted area just off the runway, where they feigned technical trouble and sat under guard for days at a time — awaiting repairs that never occurred.
_ Three buildings on the military portion of the air base were strictly off-limits to Romanians but were frequented and controlled by the Americans.
"It was all set up and simulated to look like normal activity. But believe me, it was very unusual," said the official, who said he needed anonymity to protect himself.
"If you are 50 yards away, you say they are 'parcels,'" he said. "But I think people were on (the plane) and I think they were bundled up." The entire scene was completely out of character with normal aircraft arrivals or standard cargo protocol, he said.
But top Romanian authorities deny the CIA ran so-called "black sites" on their territory. While the official described a pattern of highly unusual flight maneuvers and covert American activities, he says he never saw a prisoner.
Mihail Kogalniceanu Air Base, former presidential security adviser Ioan Talpes said in an interview with the AP, had an arrangement with the CIA that gave the agency the right to use the base as needed.
"There were official arrangements of a secret and confidential nature which gave CIA planes the right to land at Romanian airports," said Talpes, who worked at the time for ex-President Ion Iliescu. "They had actions there that we didn't know about," Talpes said. He said Iliescu signed an agreement guaranteeing that Romania would secure the perimeter and otherwise not interfere.
John Sifton, who conducts independent human rights investigations, said the dates and descriptions of the flights described by the base official match the timing and routes of known CIA rendition flights recorded in Eurocontrol flight databases.
Those included an April 2004 flight from Guantanamo Bay, Cuba, that went out of its way to stop at Mihail Kogalniceanu before heading on to Casablanca, Morocco.
"It was a time when they were moving people around," Sifton told the AP. The Romania stopovers, he added, "look pretty shady to me."
Marty's report concluded that the CIA secretly held al-Qaida operatives, Taliban leaders and other "high-value detainees" in Romania and Poland between 2002 and 2005.
The report, citing unnamed intelligence officials, said five people either authorized or were aware of the Romania operation: Iliescu, Talpes, former Defense Minister Ioan Mircea Pascu, Sergiu Medar, a former head of military intelligence, and current President Traian Basescu. Detainees were subjected "to interrogation techniques tantamount to torture" and underscored "a permissive attitude on the part of the Romanian authorities."
Basescu's office refused to discuss the allegations. "What business do we have with this?" it replied. Pascu called it "a closed subject," and Medar declined a request to be interviewed.
Beyond the midnight flights and the bus, the base official who spoke with the AP said he had questions about what went on aboard larger aircraft from Iraq that arrived at the base and then parked for several days, supposedly awaiting repairs.
"They misinformed. They lied," he said. "It happened many times and there was nothing anyone could do about it."
President Bush and other administration officials have confirmed the existence of the rendition program but have not named the countries involved. They say the U.S. does not engage in torture.
Romanian officials said the U.S. military has invested about $18 million in Mihail Kogalniceanu Airport, including a $4 million perimeter fence, a new hangar and road improvements. Romania has supported and provided troops for the U.S.-led campaigns in Afghanistan and Iraq.
Talpes, the former presidential security adviser, said Romanian authorities did not intrude on the U.S. "respected zone" at Mihail Kogalniceanu, used mostly to ferry troops and supplies to Iraq and Afghanistan — because they did not want to make "an unfriendly gesture."
Pressed about whether prisoners were tortured, he said bluntly: "Even if I knew that one of my allies did something, I wouldn't tell you."