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The story of Moldova's lost billion so far: Kroll report leaked, businessman arrested, ex-President involved

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Since autumn, the scandal regarding Moldova’s lost billion dollars has only expanded and now it looks on the verge of exploding. According to various politicians’ statements and press reports, about one million dollars was stolen from the Moldovan banking system, which left three banks on the brink of a collapse and fuelled a severe depreciation of the Moldovan leu.

Last Sunday, the people took to the streets and protested against the high-level theft and corruption within the government. Reported figures vary between 10000 and 40000 protesters.

The Kroll report leaked by President of the Parliament

Shortly after, Speaker Andrian Candu from the Democratic Party published the initial report of Kroll, an international company hired during the previous government to investigate the so-called ”theft of the century”. However, the report failed to meet some of the expectations surrounding it. It mainly confirmed and offered more details regarding what was already known: the main culprit so far appears to be businessman Ilan Shor.

According to the report, individuals and companies affiliated with Shor took over three banks – Banca de Economii, Unibank and Banca Sociala. Afterwards, the banks were used to transfer about one million dollars to Shor Group companies. The scheme also involved Latvian banks owned by Ukrainian oligarchs, offshore companies registered in the UK and Hong Kong and interbank deposits from Russian financial institutions.

The Kroll report also revealed that former President Petru Lucinschi bought shares in Unibank with a 2012 loan from a Shor-related company and a 2013 loan directly from Shor. However, Lucinschi was quick to deny knowing anything about the scheme and explained he had acted on the friendly business advice of Shor, whose late father was a friend of Lucinschi. The former President suggested that Shor couldn’t have done it alone and that high-ranking officials had probably participated as well.

Issues with the Kroll report

However, the Kroll report comes with a significant caveat: it is largely based on the data supplied by the National Bank of Moldova. For many, this severely undermines the credibility of its conclusions, as the National Bank and its governor, Dorin Dragutanu, have been often accused of being accomplices to the whole scheme. Interestingly, Petru Lucinschi stated that he hadn’t expected such a theft to happen because “in we have very good legislation in the banking system, which controls everything”.

However, the Parliament published its own investigation report, compiled by a specially-created parliamentary commission, which concludes that the National Bank and the National Commission for the Financial Market do not have sufficient and efficient tools. Nonetheless, the parliamentary report concedes that even within the existing regulatory framework the two institutions could’ve acted better.

Another suspicion regarding the publishing of the Kroll report is related to the fact that this breaks the confidentiality agreement signed with Kroll. Given that this is only the report of the scoping phase, meant to be only the beginning of a more complex and thorough investigation, many fear that breaking the confidentiality agreement might determine Kroll to refuse the continuation of the investigation. Or it might make Kroll or any other alternative company demand a higher fee for its services, which would then be used as an excuse by the government to abandon the investigation.

As the report was leaked by the Democrat’s Andrian Candu (PD), the rumor has it that he’s being groomed to become the next Prime Minister. The last three PMs have been provided by the Liberal-Democrats (PLDM): Vlad Filat, Iurie Leanca and Chiril Gaburici. The first one, Filat, was sacked on suspicions of corruption, but continues to lead the Lib-Dems. Meanwhile, Shor is widely considered to be a business associated of Filat. Thus, taking down Shor is seen by many as a move by the Democrats to undermine Filat and his party and then take over the PM’s seat.

The politicians react

Vlad Filat wrote on his Facebook page that he himself had requested the authorities to publish the report. “I think that informing the citizens is a step towards normality. Leaving the state institutions to do their job transparently is the next step. Although it my have legal consequences, de-classifying the report is absolutely necessary. It’s the only way to avoid suspicions and political speculation. We must all realize that politicizing this topic will hinder the correct and impartial unfolding of the investigation, which we all want finalized as soon as possible”.

Meanwhile, the Liberals’ Valeriu Munteanu wrote on Facebook (ever so popular among politicians) that “by publishing the Kroll report, PD suggested that PLDM is the only one to blame for the theft a billion euros from the three banks, thus trying to save its own political skin. I think that the end of this shameful coalition is near, as PLDM has become a political vegetable, which used by Vladimir Plahotniuc (ed. – one of the Democrat leaders, nicknamed “the Puppeteer” by Filat) can still do much harm to Moldova”.

Socialist leader Igor Dodon wrote that “publishing the Kroll report a few days before it got in the hands of the opposition and civil society is an act of despair and not one of political courage”. He added that the report actually didn’t say anything new and that both the Plahotniuc and Candu’s Democrats and Filat’s Lib-Dems, as well as the Liberals, previously in power, were in on the theft all along and protected Shor’s schemes. “It seems we are witnessing a well-directed show meant to let off some steam, which will be followed only by the changing of some government officials”, concluded Dodon.

Ilan Shor arrested!

Yesterday, Ilan Shor was placed in home arrest for 30 days. On one hand, a spontaneous protest gathered people outside the National Anticorruption Center, chanting “Don’t let Shor escape to offshore”. The protesters think that home arrest is too mild a measure given the size of the theft Shor is allegedly involved in and fear he might leave the country.

On the other hand, Shor issued a public statement labelling the measure as “abusive”. “I have openly collaborated with the investigation bodies, I’ve shown up for interrogation every time I’ve been summoned and I’ve offered all the statements demanded from me. Moreover, I’ve travelled abroad several times since the beginning of the investigation and I have returned every time. I’ve never done anything to hinder the prosecutors’ activity”, wrote Shor.

“As regards the charges against me: I’m ready to prove with declarations and documents that they are ungrounded. Besides, I will support the investigation bodies in finding out the truth about the causes that led Banca de Economii to the difficult situation I found it in”, reads Shor’s statement.

The next episode…

The Parliament met today and decided to hold further hearings in this case. As such, Prime Minister Chiril Gaburici, National Bank governor Dorin Dragutanu and Prosecutor General Corneliu Gurin will be summoned before the Parliament.

The public opinion is tense and the organizers of Sunday’s protest are ready to gather the people again if they don’t feel justice is served. Right now, the citizens want to see whether Shor is charged and what exactly are the charges, whether the Kroll investigation will continue or not, and what other names will surface in this scandal. The general consensus is that Shor wasn’t alone in this and that heads must fall among party leaders and government officials.

To put it shortly, Moldova is waiting for the next episode of the Lost Billion Saga.

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#WorldForUkraine – a map that shows the magnitude of the world’s actions against Russian aggression

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The international community and volunteers from all over te world have launched #WorldForUkraine as a platform that shows the magnitude of the world’s actions against the Russian aggression. In a digital world – it is an interactive map of public support of Ukrainians under the hashtag #WorldForUkraine – rallies, flash mobs, protests around the world. In the physical dimension – it is your opportunity to take to the streets and declare: “No to Putin’s aggression, no to war.”

„Today, along with the political and military support, emotional connection with the civilized world and truthful information are extremely important for Ukraine. The power to do it is in your hands. Join the #WorldForUkraine project and contribute to the victorious battle against the bloodshed inflicted on Ukraine by the aggression of the Russian Federation”, says the „about the project” section of the platform.

Go to the streets — Tell people — Connect and Unite — Become POWERFUL

Volunteers have launched #WorldForUkraine as a platform that shows the magnitude of the world’s actions against Russian aggression. In digital world – it is an INTERACTIVE MAP of public support of Ukrainians worldforukraine.net under the hashtag #WorldForUkraine – rallies, flash mobs, protests around the world. In the physical dimension – it is your opportunity to take to the streets and declare: “No to Putin’s aggression, no to war.” There you may find information about past and future rallies in your city in support of Ukraine. This is a permanent platform for Ukrainian diaspora and people all over the world concerned about the situation in Ukraine.

So here’s a couple of things you could do yourself to help:

* if there is a political rally in your city, then participate in it and write about it on social media with geolocation and the hashtag #WorldForUkraine

* if there are no rallies nearby, organize one in support of Ukraine yourself, write about it on social media with geolocation adding the hashtag #WorldForUkraine

The map will add information about gathering by #WorldForUkraine AUTOMATICALLY

Your voice now stronger THAN ever

All rallies are already here: https://worldforukraine.net

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How is Moldova managing the big influx of Ukrainian refugees? The authorities’ plan, explained 

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From 24th to 28th of February, 71 359 Ukrainian citizens entered the territory of Republic of Moldova. 33 173 of them left the country. As of this moment, there are 38 186 Ukrainian citizens in Moldova, who have arrived over the past 100 hours. 

The Moldovan people and authorities have organized themselves quickly from the first day of war between Russia and Ukraine. However, in the event of a prolonged armed conflict and a continuous influx of Ukrainian refugees, the efforts and donations need to be efficiently managed. Thus, we inquired about Moldova’s long-term plan and the state’s capacity to receive, host, and treat a bigger number of refugees. 

On February 26th, the Ministry of Labor and Social Protection of Moldova approved the Regulation of organization and functioning of the temporary Placement Center for refugees and the staffing and expenditure rules. According to the Regulation, the Centers will have the capacity of temporary hosting and feeding at least 20 persons, for a maximum of 3 months, with the possibility of extending this period. The Centers will also offer legal, social, psychological, and primary medical consultations to the refugees. The Center’s activity will be financed from budget allocations, under Article 19 of Provision no. 1 of the Exceptional Situations Commission from February 24th, 2022, and from other sources of funding that do not contravene applicable law.

The Ministry of Inner Affairs and the Government of Moldova facilitated the organization of the volunteers’ group “Moldova for Peace”.  Its purpose is to receive, offer assistance and accommodation to the Ukrainian refugees. The group is still working on creating a structure, registering and contacting volunteers, etc. It does not activate under a legal umbrella. 

Lilia Nenescu, one of the “Moldova for Peace” volunteers, said that the group consists of over 20 people. Other 1700 registered to volunteer by filling in this form, which is still available. The group consists of several departments: 

The volunteers’ department. Its members act as fixers: they’re responsible for connecting the people in need of assistance with the appropriate department. Some of the volunteers are located in the customs points. “The Ministry of Inner Affairs sends us every day the list of the customs points where our assistance is needed, and we mobilize the volunteers”, says Lilia Nenescu. 

The Goods Department manages all the goods donated by the Moldavian citizens. The donations are separated into categories: non-perishable foods and non-food supplies. The volunteers of this department sort the goods into packages to be distributed. 

The Government intends to collect all the donations in four locations. The National Agency for Food Safety and the National Agency for Public Health will ensure mechanisms to confirm that all the deposited goods comply with safety and quality regulations. 

The Service Department operates in 4 directions and needs the volunteer involvement of specialists in psychology, legal assistance (the majority of the refugees only have Ukrainian ID and birth certificates of their children); medical assistance; translation (a part of the refugees are not Ukrainian citizens). 

According to Elena Mudrîi, the spokesperson of the Ministry of Health, so far there is no data about the number of  Covid-19 positive refugees. She only mentioned two cases that needed outpatient medical assistance: a pregnant woman and the mother of a 4-day-old child. 

The Accommodation Department. The volunteers are waiting for the centralized and updated information from the Ministry of Labor about the institutions offering accommodation, besides the houses offered by individuals. 

The Transport Department consists of drivers organized in groups. They receive notifications about the number of people who need transportation from the customs points to the asylum centers for refugees.

The municipal authorities of Chișinău announced that the Ukrainian children refugees from the capital city will be enrolled in educational institutions. The authorities also intend to create Day-Care Centers for children, where they will be engaged in educational activities and will receive psychological assistance. Besides, the refugees from the municipal temporary accommodation centers receive individual and group counseling. 

In addition to this effort, a group of volunteers consisting of Ana Gurău, Ana Popapa, and Andrei Lutenco developed, with the help of Cristian Coșneanu, the UArefugees platform, synchronized with the responses from this form. On the first day, 943 people offered their help using the form, and 110 people asked for help. According to Anna Gurău, the volunteers communicate with the Government in order to update the platform with the missing data. 

Translation from Romanian by Natalia Graur

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FC Sheriff Tiraspol victory: can national pride go hand in hand with political separatism?

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A new football club has earned a leading place in the UEFA Champions League groups and starred in the headlines of worldwide football news yesterday. The Football Club Sheriff Tiraspol claimed a win with the score 2-1 against Real Madrid on the Santiago Bernabeu Stadium in Madrid. That made Sheriff Tiraspol the leader in Group D of the Champions League, including the football club in the groups of the most important European interclub competition for the first time ever.

International media outlets called it a miracle, a shock and a historic event, while strongly emphasizing the origin of the team and the existing political conflict between the two banks of the Dniester. “Football club from a pro-Russian separatist enclave in Moldova pulls off one of the greatest upsets in Champions League history,” claimed the news portals. “Sheriff crushed Real!” they said.

Moldovans made a big fuss out of it on social media, splitting into two groups: those who praised the team and the Republic of Moldova for making history and those who declared that the football club and their merits belong to Transnistria – a problematic breakaway region that claims to be a separate country.

Both groups are right and not right at the same time, as there is a bunch of ethical, political, social and practical matters that need to be considered.

Is it Moldova?

First of all, every Moldovan either from the right or left bank of Dniester (Transnistria) is free to identify himself with this achievement or not to do so, said Vitalie Spranceana, a sociologist, blogger, journalist and urban activist. According to him, boycotting the football club for being a separatist team is wrong.

At the same time, “it’s an illusion to think that territory matters when it comes to football clubs,” Spranceana claimed. “Big teams, the ones included in the Champions League, have long lost their connection both with the countries in which they operate, and with the cities in which they appeared and to which they linked their history. […] In the age of globalized commercial football, teams, including the so-called local ones, are nothing more than global traveling commercial circuses, incidentally linked to cities, but more closely linked to all sorts of dirty, semi-dirty and cleaner cash flows.”

What is more important in this case is the consistency, not so much of citizens, as of politicians from the government who have “no right to celebrate the success of separatism,” as they represent “the national interests, not the personal or collective pleasures of certain segments of the population,” believes the political expert Dionis Cenusa. The victory of FC Sheriff encourages Transnistrian separatism, which receives validation now, he also stated.

“I don’t know how it happens that the “proud Moldovans who chose democracy”, in their enthusiasm for Sheriff Tiraspol’s victory over Real Madrid, forget the need for total and unconditional withdrawal of Russian troops from Transnistria!” declared the journalist Vitalie Ciobanu.

Nowadays, FC Sheriff Tiraspol has no other choice than to represent Moldova internationally. For many years, the team used the Moldovan Football Federation in order to be able to participate in championships, including international ones. That is because the region remains unrecognised by the international community. However, the club’s victory is presented as that of Transnistria within the region, without any reference to the Republic of Moldova, its separatist character being applied in this case especially.

Is it a victory?

In fact, FC Sheriff Tiraspol joining the Champions League is a huge image breakthrough for the Transnistrian region, as the journalist Madalin Necsutu claimed. It is the success of the Tiraspol Club oligarchic patrons. From the practical point of view, FC Sheriff Tiraspol is a sports entity that serves its own interests and the interests of its owners, being dependent on the money invested by Tiraspol (but not only) oligarchs.

Here comes the real dilemma: the Transnistrian team, which is generously funded by money received from corruption schemes and money laundering, is waging an unequal fight with the rest of the Moldovan football clubs, the journalist also declared. The Tiraspol team is about to raise 15.6 million euro for reaching the Champions League groups and the amounts increase depending on their future performance. According to Necsutu, these money will go directly on the account of the club, not to the Moldovan Football Federation, creating an even bigger gab between FC Sheriff and other football clubs from Moldova who have much more modest financial possibilities.

“I do not see anything useful for Moldovan football, not a single Moldovan player is part of FC Sheriff Tiraspol. I do not see anything beneficial for the Moldovan Football Federation or any national team.”

Is it only about football?

FC Sheriff Tiraspol, with a total estimated value of 12.8 million euros, is controlled by Victor Gusan and Ilya Kazmala, being part of Sheriff Holding – a company that controls the trade of wholesale, retail food, fuels and medicine by having monopolies on these markets in Transnistria. The holding carries out car trading activities, but also operates in the field of construction and real estate. Gusan’s people also hold all of the main leadership offices in the breakaway region, from Parliament to the Prime Minister’s seat or the Presidency.

The football club is supported by a holding alleged of smuggling, corruption, money laundering and organised crime. Moldovan media outlets published investigations about the signals regarding the Sheriff’s holding involvement in the vote mobilization and remuneration of citizens on the left bank of the Dniester who participated in the snap parliamentary elections this summer and who were eager to vote for the pro-Russian socialist-communist bloc.

Considering the above, there is a great probability that the Republic of Moldova will still be represented by a football club that is not identified as being Moldovan, being funded from obscure money, growing in power and promoting the Transnistrian conflict in the future as well.

Photo: unknown

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