{"id":441705,"date":"2015-05-07T11:47:06","date_gmt":"2015-05-07T09:47:06","guid":{"rendered":"http:\/\/www.moldova.org\/?p=420533"},"modified":"2015-05-07T11:47:06","modified_gmt":"2015-05-07T09:47:06","slug":"the-story-of-moldovas-lost-billion-so-far-kroll-report-leaked-businessman-arrested-ex-president-involved-2","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/the-story-of-moldovas-lost-billion-so-far-kroll-report-leaked-businessman-arrested-ex-president-involved-2\/","title":{"rendered":"The story of Moldova&#039;s lost billion so far: Kroll report leaked, businessman arrested, ex-President involved"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>Since autumn, the scandal regarding Moldova&#8217;s lost billion dollars has only expanded and now it looks on the verge of exploding. According to various politicians&#8217; 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.<\/p>\n<p>Last Sunday, <a href=\"http:\/\/www.moldova.org\/mass-protests-in-moldova-40-000-people-protested-against-the-government\/\" target=\"_blank\">the people took to the streets and protested<\/a> against the high-level theft and corruption within the government. Reported figures vary between 10000 and 40000 protesters.<\/p>\n<p><strong>The Kroll report leaked by President of the Parliament<\/strong><\/p>\n<p>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 \u201dtheft of the century\u201d. 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.<\/p>\n<p>According to the report, individuals and companies affiliated with Shor took over three banks &#8211; 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.<\/p>\n<p>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&#8217;t have done it alone and that high-ranking officials had probably participated as well.<\/p>\n<p><strong>Issues with the Kroll report<\/strong><\/p>\n<p>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&#8217;t expected such a theft to happen because &#8220;in we have very good legislation in the banking system, which controls everything&#8221;.<\/p>\n<p>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&#8217;ve acted better.<\/p>\n<p>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.<\/p>\n<p>As the report was leaked by the Democrat&#8217;s Andrian Candu (PD), the rumor has it that he&#8217;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&#8217;s seat.<\/p>\n<p><strong>The politicians react<\/strong><\/p>\n<p>Vlad Filat wrote on his Facebook page that he himself had requested the authorities to publish the report. &#8220;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&#8217;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&#8221;.<\/p>\n<p>Meanwhile, the Liberals&#8217; Valeriu Munteanu wrote on Facebook (ever so popular among politicians) that &#8220;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. &#8211; one of the Democrat leaders, nicknamed &#8220;the Puppeteer&#8221; by Filat) can still do much harm to Moldova&#8221;.<\/p>\n<p>Socialist leader Igor Dodon wrote that &#8220;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&#8221;. He added that the report actually didn&#8217;t say anything new and that both the Plahotniuc and Candu&#8217;s Democrats and Filat&#8217;s Lib-Dems, as well as the Liberals, previously in power, were in on the theft all along and protected Shor&#8217;s schemes. &#8220;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&#8221;, concluded Dodon.<\/p>\n<p><strong>Ilan Shor arrested!<\/strong><\/p>\n<p>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 &#8220;Don&#8217;t let Shor escape to offshore&#8221;. 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.<\/p>\n<p>On the other hand, Shor issued a public statement labelling the measure as &#8220;abusive&#8221;. &#8220;I have openly collaborated with the investigation bodies, I&#8217;ve shown up for interrogation every time I&#8217;ve been summoned and I&#8217;ve offered all the statements demanded from me. Moreover, I&#8217;ve travelled abroad several times since the beginning of the investigation and I have returned every time. I&#8217;ve never done anything to hinder the prosecutors&#8217; activity&#8221;, wrote Shor.<\/p>\n<p>&#8220;As regards the charges against me: I&#8217;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&#8221;, reads Shor&#8217;s statement.<\/p>\n<p><strong>The next episode&#8230;<\/strong><\/p>\n<p>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.<\/p>\n<p>The public opinion is tense and the organizers of Sunday&#8217;s protest are ready to gather the people again if they don&#8217;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&#8217;t alone in this and that heads must fall among party leaders and government officials.<\/p>\n<p>To put it shortly, Moldova is waiting for the next episode of the Lost Billion Saga.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Since autumn, the scandal regarding Moldova&#8217;s lost billion dollars has only expanded and now it looks on the verge of exploding. According to various politicians&#8217; 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 [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":267781,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,6,9],"tags":[],"class_list":["post-441705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-important-en","category-justice"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>Since autumn, the scandal regarding Moldova&#8217;s lost billion dollars has only expanded and now it looks on the verge of exploding. According to various politicians&#8217; 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.<\/p>\n<p>Last Sunday, <a href=\"http:\/\/www.moldova.org\/mass-protests-in-moldova-40-000-people-protested-against-the-government\/\" target=\"_blank\">the people took to the streets and protested<\/a> against the high-level theft and corruption within the government. Reported figures vary between 10000 and 40000 protesters.<\/p>\n<p><strong>The Kroll report leaked by President of the Parliament<\/strong><\/p>\n<p>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 \u201dtheft of the century\u201d. 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.<\/p>\n<p>According to the report, individuals and companies affiliated with Shor took over three banks &#8211; 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.<\/p>\n<p>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&#8217;t have done it alone and that high-ranking officials had probably participated as well.<\/p>\n<p><strong>Issues with the Kroll report<\/strong><\/p>\n<p>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&#8217;t expected such a theft to happen because &#8220;in we have very good legislation in the banking system, which controls everything&#8221;.<\/p>\n<p>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&#8217;ve acted better.<\/p>\n<p>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.<\/p>\n<p>As the report was leaked by the Democrat&#8217;s Andrian Candu (PD), the rumor has it that he&#8217;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&#8217;s seat.<\/p>\n<p><strong>The politicians react<\/strong><\/p>\n<p>Vlad Filat wrote on his Facebook page that he himself had requested the authorities to publish the report. &#8220;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&#8217;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&#8221;.<\/p>\n<p>Meanwhile, the Liberals&#8217; Valeriu Munteanu wrote on Facebook (ever so popular among politicians) that &#8220;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. &#8211; one of the Democrat leaders, nicknamed &#8220;the Puppeteer&#8221; by Filat) can still do much harm to Moldova&#8221;.<\/p>\n<p>Socialist leader Igor Dodon wrote that &#8220;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&#8221;. He added that the report actually didn&#8217;t say anything new and that both the Plahotniuc and Candu&#8217;s Democrats and Filat&#8217;s Lib-Dems, as well as the Liberals, previously in power, were in on the theft all along and protected Shor&#8217;s schemes. &#8220;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&#8221;, concluded Dodon.<\/p>\n<p><strong>Ilan Shor arrested!<\/strong><\/p>\n<p>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 &#8220;Don&#8217;t let Shor escape to offshore&#8221;. 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.<\/p>\n<p>On the other hand, Shor issued a public statement labelling the measure as &#8220;abusive&#8221;. &#8220;I have openly collaborated with the investigation bodies, I&#8217;ve shown up for interrogation every time I&#8217;ve been summoned and I&#8217;ve offered all the statements demanded from me. Moreover, I&#8217;ve travelled abroad several times since the beginning of the investigation and I have returned every time. I&#8217;ve never done anything to hinder the prosecutors&#8217; activity&#8221;, wrote Shor.<\/p>\n<p>&#8220;As regards the charges against me: I&#8217;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&#8221;, reads Shor&#8217;s statement.<\/p>\n<p><strong>The next episode&#8230;<\/strong><\/p>\n<p>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.<\/p>\n<p>The public opinion is tense and the organizers of Sunday&#8217;s protest are ready to gather the people again if they don&#8217;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&#8217;t alone in this and that heads must fall among party leaders and government officials.<\/p>\n<p>To put it shortly, Moldova is waiting for the next episode of the Lost Billion Saga.<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/the-story-of-moldovas-lost-billion-so-far-kroll-report-leaked-businessman-arrested-ex-president-involved-2\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.moldova.org%2Fen%2Fthe-story-of-moldovas-lost-billion-so-far-kroll-report-leaked-businessman-arrested-ex-president-involved-2%2F\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\" 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Moldova&#039;s lost billion so far: Kroll report leaked, businessman arrested, ex-President involved - Moldova.org<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moldova.org\/en\/the-story-of-moldovas-lost-billion-so-far-kroll-report-leaked-businessman-arrested-ex-president-involved-2\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Eugen Muravschi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" 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