European prosecutors are investigating Tiriac Auto, a leading car company founded by the Romanian billionaire and ex tennis coach Ion Tiriac, on suspicion that the firm sold school minibuses paid with EU funds at inflated prices, G4Media and Fanatk reported.
The EPPO’s investigations started after the Minister of European Funds notified the European Public Prosecutor’s Office in connection with the acquisition of several school minibuses through the PNRR.
Minister of Investments and European Projects, Dragoş Pîslaru, argued that several “dysfunctions that raise questions about the way European money was used” were found.
“The same type of electric minibus (16+1 seats) was purchased, in different counties, at significantly variable values. (…) between a minimum of 99,000 euros and a maximum of 263,000 euros per unit,” Pîslaru said.
“The significant price difference for similar minibuses raises suspicions of collusion between the companies (cartel price). The price does not represent a real picture of the market prices,” the minister said.
.Tiriac Auto suspected of being involved in a broader scheme
In the case of Tiriac Auto, the EPPO are investigating the purchase of special 4×4 Ford Ranger Raptor vehicles for the Romanian Border Police.
The company owned by the Romanian billionaire Ion Tiriac was allegedly part of a scheme in which the value of the vehicles was gradually increased, Fanatik reported.
Intermediaries applied large and unjustified trade mark-ups which facilitated the improper directing of significant European funds that were earmarked for the acquisition of modern school transport.
Contacted by Fanatik, the CEO of Tiriac Auto, Marius Marian, declined to comment on the case.
The “Electric minibuses for students” project was designed to support local communities and to provide children in rural areas with safe, modern and environmentally friendly transport.
“Unfortunately, the analysis of the documentation sent by the county councils shows that the implementation method was uneven and lacked centralized coordination. Instead of an integrated system, with centralized procurement and unitary standards, each county carried out separate procedures, establishing its own specifications, estimated values and delivery conditions,” Pîslaru added.
In total, 40 counties purchased 74 units.
He added that the decentralization scheme, although justified by the desire for local flexibility, has generated absolutely ‘reprehensible’ effects: significant price differences between similar minibuses and the lack of clear justifications regarding the major cost differences.
“Equipment was delivered later, while the price differences sometimes varied up to three times more than the lowest price. There are no technical or financial justifications to cover major cost differences.
“The significant price difference for similar minibuses raises suspicions of collusion between companies (cartel price), the price not representing a real picture of the prices practiced on the market,” the minister reports.
“In the light of all these aspects, I ordered the findings to be sent to the competent institutions: the European Public Prosecutor’s Office, the Anti-Fraud Department and the Competition Council.
“Their role is to verify whether the price differences and the way in which the minimum mandatory information in the guide was used were simple administrative errors or practices affecting the sound management of European funds.”
“Romania needs an administration that functions unitarily and responsibly. European money is public money, and Romania’s very modernization depends on its correct and transparent use. When we talk about public money, we cannot afford negligence, improvisation or lack of rigor and I will never tolerate such situations.”
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